Raleigh City Manager Marchell Adams-David unveiled the City’s proposed budget for Fiscal Year 2023 (FY 23) and the proposed Five-year Capital Improvement Program for FY 23 - 27 at today’s City Council meeting.
"In this budget message, I highlight how the proposed $1.14 billion budget reinforces our commitment to fiscal stewardship, operational efficiency, strategic investments, and effective change management," Mrs. Adams-David wrote in her budget message to the City Council. She further explained that the proposed budget represents a "robust spirit of optimism as we change our focal point from the unprecedented issues which have challenged our organization and City over the past three years, and we readjust our focus on investments in our community and our people."
The proposed net operating and capital budget for FY 23 is $1.14 billion, which includes a General Fund total operating budget of $588.7 million. The General Fund budget represents an 8.2% increase over FY 22.
The proposed FY 23 Capital Improvement Program totals $553.8 million, with the total for five years (FY 23 - FY 27) being $1.95 billion.
The FY 23 proposed budget includes a 2.0 cent property tax increase from the FY 22 adopted tax rate of 37.30 cents per $100 valuation to 39.30 cents per $100 valuation, to support increases in employee compensation and much needed operating enhancements that have been delayed or deferred during the pandemic. The City Manager proposes a $0.25 increase per month in Solid Waste Services to support increased costs associated with employee compensation, fuel, vehicle repair and maintenance, and landfill fees. Raleigh Water proposes a 1.5 percent increase in the monthly base and volumetric water and sewer charges. Finally, the Manager proposes a $0.18 increase per Single-Family Equivalent Unit (SFEU) for Stormwater. The rate increase will cover additional staff and helps to accelerate the backlog of CIP projects.
Fiscal Year 2023 begins July 1, 2022 and ends on June 30, 2023.
Budget Highlights
The proposed budget recognizes the importance of investing in our greatest asset, our employees. The FY 23 budget proposes adjustments to maintain a competitive compensation and benefits package, including:
- This budget includes the full year costs of a 2% Cost of Living Adjustment (COLA) for all full-time employees in the department. The COLA was approved by City Council in April 2022.
- This budget moves Police and Fire pay range minimums to the average of Wake County municipalities plus 6%, with pay range maximums increasing accordingly. Emergency Communications’ pay ranges are also adjusted based on market conditions, increasing two ranges in the General Pay Structure.
- This budget moves the General Pay Structure, Police Pay Structure, and Fire Pay Structure merit increases to 5% for those below the midpoint and 3% for those at the midpoint and higher; an increase from the FY 22 budget which funded the merits at 4% and 2%.
- This budget funds an increase in the Temporary Pay Plan from a minimum of $8.25 to $11.00 an hour for temporary employees to ensure the City is competitive in the market and continues to provide the critical services our community expects.
- This budget includes a new permanent part-time classification to increase the stability of service delivery, improve recruitment of key positions, and maintain programming and services.
The Proposed Budget for FY 23 reinforces our commitment to fiscal stewardship, operational efficiency, strategic investments, and effective change management through:
- Funding for a contractual position in Communications to support the ongoing maintenance and continuous improvement of the website and other critical communication channels.
- Funding for a mobile Community Engagement bus that will allow staff to meet our community where they are available and continuing to advance City Council’s commitment to reaching those that are traditionally underserved and underrepresented in our city.
- Consulting services for the Department of Equity and Inclusion that will provide capacity building, training and facilitation development, and additional support to address inclusion and bias at the department levels throughout the organization.
- Funding for a new position in Housing and Neighborhoods that will continue to support the implementation of the 2020 voter approved Affordable Housing Bond.
- Funding for the addition of one Staff Psychologist for the Raleigh Fire Department.
- Capital investments in affordable housing, street resurfacing and parks maintenance; with each of these areas having $7.8 million dedicated through a penny. This represents a $117,000,000 commitment to these three areas over the next five years.
As the City of Raleigh continues to grow, the FY 23 budget proposal and FY 23 - 27 Capital Improvement Plan (CIP) reflect the prioritization of critical infrastructure investments. Funding will support priorities including affordable housing, water quality efforts, parks maintenance, and a well-connected transportation system.
Additional Requests
In addition, two organizations have requested the City of Raleigh to consider small tax rate increases. Those would affect the Downtown Municipal Services District (MSD) and the Hillsborough Street Municipal Services District (MSD).
Budget Deliberation Process
A public hearing on the proposed budget and CIP will be held Tuesday, June 7 at 7 p.m. In addition to hearing public comment on the proposed budget and CIP, residents will be able to comment on the requests that would affect the two MSDs, mentioned above.
The City Council will hold budget work sessions on each Monday in June if needed. All sessions will be carried live on RTN11 (97.5), and video streamed on the City of Raleigh’s website.
The budget must be adopted by July 1. The complete budget proposal can be seen on the Budget and Management Services webpage. For more information, contact the City’s Budget and Management Services Department at 919-996-4270.