Local Politics

Raleigh budget proposal includes no property tax increase

Posted May 18, 2010 2:33 p.m. EDT

— Raleigh's property tax rate would remain steady in the coming year under a budget proposed Tuesday by City Manager Russell Allen.

Allen's $620.3 million spending plan erases a projected $7.5 million deficit for the 2010-11 fiscal year, which starts in July.

Under the proposal, 24 vacant positions will be eliminated. Also, city workers wouldn't receive a cost-of-living raise during the coming year, and they also would pay more for dependent health insurance coverage.

Property taxes within the city are projected to generate $186.7 million in the coming year, up less than 1 percent from the current tax base of $185.8 million, officials said. Sales tax revenue is expected to increase almost 4 percent, from $61.1 million to $63.4 million, but will remain well below pre-recession levels, they said.

Other moves Allen uses to balance his budget include borrowing $3 million from the city's capital improvements fund, delaying the purchase of two fire engines and 46 replacement police cars and cutting back on maintenance and travel.

The proposal also includes a $5 increase to annual motor vehicle taxes to generate more money for Capital Area Transit.