Local News

Raleigh City Manager Proposes 4-Cent Property Tax Increase

Posted May 16, 2006

— In his new budget proposal presented Tuesday, Raleigh City Manager Russell Allen said he would like to see a 4-cent property tax increase.

Allen said a 4-cent increase would adjust the property tax rate to 43.50 cents per $100 of property value.

"The city stands at a crossroads with economically driven revenue increases failing to cover the city's fixed-cost increases," Allen told the City Council. "I believe a 4-cent property tax rate increase is necessary to fund the road and affordable housing bond programs as well as the modest staffing and equipment additions required to respond to the growing demand for services."

Allen said the 4-cent increase in the property tax would generate about $13 million in additional revenue.

Allen also discussed a proposal for a 9 percent increase in the retail water and sewer rates. Even with the increase, Allen said Raleigh water and sewer rates remain well below other Triangle rates and are among the lowest in the state.

Also on Tuesday, the Raleigh City Council voted unanimously to approve changes to the entertainment ordinance that will make it easier for the city to address problem nightclubs.

The ordinance was changed to include certain violations in parking areas used by club patrons. Violations in parking areas would be handled the same as violations that occur inside the club. Clubs that violate the new ordinance can face fines and a possible suspension.

The Raleigh City Council's public works committee will study year-round water restrictions and other long-term water conservation measures recommended by the city's water conservation task force. Council members voted Tuesday to refer the proposals to the committee.

Following its review, the public works committee will make a recommendation to the full council.

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