Raleigh City Council approves budget, tax increase
Posted June 9, 2014
Raleigh, N.C. — The City Council voted 7-1 Monday to approve a $754.2 million budget for the fiscal year that starts in July, including a 2.12-cent increase to the tax rate for Raleigh property owners.
The tax increase brings Raleigh’s property tax rate to 40.38 cents per $100 valuation and adds $42.40 to the tax bill of a $200,000 house.
“Population and service demand growth have rebounded since the Great Recession, and with the (2014-15) budget, Raleigh is investing additional operating and significant capital revenues in the highest return for our community,” City Manager Ruffin Hall said in a statement. “This includes prioritizing the maintenance and restoration of our capital infrastructure while also adding police officers, opening a fire station and expanding parks, recreation and cultural resources to respond to the needs of our vibrant, growing community.”
Raleigh plans to use the added tax revenue to hire nine police officers, 30 firefighters to staff a new fire station on Leesville Road, asphalt and concrete paving crews, an engineering inspector, two solid waste supervisors, three building inspectors and people to operate Horseshoe Farm Park and the Woodland Center at Lake Johnson. Officials also want to replace police radios, open a satellite operations facility in the northeast part of the city and replace aging vehicles.
One cent of the property tax rate increase will expand the street resurfacing program by about 30 miles each year – the city maintains 1,055 miles of streets – and voters approved the remaining 1.12-cent increase last fall when they passed a $75 million transportation bond.
The budget also includes an extra $1 per month for residential customers for Solid Waste Services to help pay for deferred equipment maintenance and replacement. Sewer rates will go up 4.4 percent, and the city will assess an infrastructure replacement charge that together will add $4.27 per month to the bill of an average single-family residential customer.