Allen said the increase is needed to keep up with Raleigh's growth and to maintain current city services, but some council members have pledged to cut his proposed budget plan in order to keep taxes down.
Raleigh Police Chief Jane Perlov said an increase is needed to fund a newly-formed gang unit.
"I would say, without hesitation, that gang activity and gang-related crime is absolutely on the increase in Raleigh," she said.
Raleigh residents have not seen a property tax increase since the early 1990s.
City council members will be back talking about the budget next week. They need to approve a plan by July 1.
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