The Raleigh City Council received the proposed budget for fiscal year 2027 and the Capital Improvement Program (CIP) for the period 2027-2031 during its meeting on Tuesday, May 19.
The total amount in the budget is $1.76 billion, which represents a decrease of approximately 1% compared to fiscal year 2026, due to cost-cutting measures.
The plan is focused on allocating funds to public safety and public services.
Key financial indicators within the budget
One of the main components of the proposed total budget for the operation of the city of Raleigh between July 1, 2026, and June 30, 2027, is the Fiscal Year 2027 General Fund, which would amount to $652.8 million.
This amount is intended to finance basic services such as policeFirefighters, parks, libraries, garbage collection, and municipal administration. Expenditures in the General Fund budget for fiscal year 2027 are broken down into the following categories:
Related: The increase in public utility rates is among the problems that most impact the community.
Investment in personnel and public services
Another key component of the budget is investment in personnel and public services.
The plan proposes allocating $3.83 million to the Raleigh Police Department to fund 23 new full-time patrol officers.
In addition, it would allocate $3.31 million to Fire Department The proposal includes $494,592 to hire six new firefighters, including two deputy chiefs, an assistant chief, and 12 additional firefighters. The proposal also allocates $494,592 to add six employees to the Emergency Communications Center and improve 911 call handling.
In Planning and Development Services, $600,300 would be allocated for six new employees focused on residential permits and inspections.
In addition, Solid Waste Services would add 21 full-time employees to expand the collection of yard waste and cover other operational needs.
Property taxes and increased rates
To maintain essential services and meet key community priorities, the budget proposes a 1.7 cent increase in the property taxThis would increase the property tax rate to 37.2 cents. For an average household in Raleigh, this increase equates to approximately $67 annually.
Compared to other cities in the Triangle area, such as Durham and Chapel Hill, Raleigh ranks among the lowest in terms of property tax rates.
In addition, an increase in rates is proposed:
- For water and sewer services, the increase is $1.74 per month. This represents a 3.1% increase in the average monthly utility bill for residential customers.
- For stormwater, the increase is $0.25 per month in the rate; and for solid waste, the increase is $2.55 per month in the rate.
Overall, residents can expect a 4.95% increase in property taxes and fees, or about $122 per year for the average Raleigh household.
The rate increase is in response to the city's efforts to close a $13 million gap in the base budget through budget adjustments, the elimination of vacant positions, and the maintenance of other vacancies that remain unfilled.
About the Capital Improvement Program (CIP)
The Capital Improvement Program is the plan the city uses to fund and organize large, multi-year infrastructure and development projects. The proposed budget covers fiscal years 2027-2031.
The total proposed amount is $503.4 million, and includes investments in affordable housingtransportation, park maintenance and general government.
For affordable housing, park maintenance, and street resurfacing, the CIP would allocate an amount of $58.4 million.
Whats Next?
A public hearing is planned for Tuesday, June 2, at 7 pm at the City Council facilities.
The final vote must take place before the start of the new fiscal year in July.
>> Proposed budget for fiscal year 2027
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