Raleigh plans tax hike, bonds for November 2026 ballot

Raleigh's city manager is recommending raising property taxes to keep the nearly $1.8 billion city budget humming.

Why it matters: Sadia Sattar, the city's budget director, says increasing certain fees and bumping the property tax rate up 1.7 cents would add $122 a year to the median Raleigh household's tax bill.

• Most of the extra money would go toward public safety, water infrastructure and adding weekly yard waste pickups, according to a proposal released yesterday.

State of play: City Manager Marchell Adams-David said the theme of the budget is "resiliency in the face of uncertainty."

• Total city spending is proposed to shrink 0.9% from last year, and even with the rate increase, property tax revenue is projected to shrink 6% year-over-year.
• Among Triangle cities and towns, only Morrisville has a lower property tax rate.

The intrigue: The Raleigh City Council also voted yesterday to call two bond referendums in the fall. Voters will be asked to approve $203 million, to be spent on affordable housing and transportation.

• In a rarity, city leaders say that won't increase taxes further.
• City staffers credit a decision last year to establish a "steady state model." It diverts money into a fund that every four years can be put toward bonds for shovel-ready projects in areas like housing, transportation and parks.
• Still, voters must approve the spending every four years.

How it works: Council member Megan Patton explained it this way:

• "In my home budget, if I have a car payment and I know it's going to roll off at a certain time, and it's a certain amount, then I can start to plan for the future and say, 'OK, well in November when my car payment rolls off, I can begin to replace my roof' … and keep the overall budget about the same."

What's next: City Council members will workshop the budget in meetings set for the first three Mondays in June.

• A public hearing is set for Tuesday, June 2 at 7pm.

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