Raleigh City Council approved our new fiscal year 2027 budget in June. I’m posting answers to frequently asked questions about this year’s budget. Thanks to all for sharpening my thinking and ensuring accountability in the process.
How does Raleigh’s property tax rate compare to other cities in the Triangle?
Only Morrisville has a lower tax rate than Raleigh. All other cities have a higher rate. The graph below shows rates as of May 2026. Many of these communities raised their rates even higher than what is seen here for fiscal year 2027.
How much of the City’s budget is allocated to reserve funds? How long would those funds allow us to operate if we were without revenue? Could reserve funds be used to avoid a property tax increase?
The City maintains a fund balance target equal to 17% of the subsequent fiscal year’s operating budget. This policy was passed in November 2023 and increased the reserve from 14% to 17% starting with FY2025. This reserve level is intended to provide financial capacity to address unforeseen emergencies, maintain adequate cash flow, and preserve the City’s strong financial position, including support for its AAA bond ratings.
The City’s fund balance would allow operations to continue for about two months in the absence of additional revenues. Staff does not recommend the use of reserve funds to offset or avoid a property tax increase. The proposed FY2027 tax rate adjustment is projected to generate approximately $19.9 million in recurring annual revenue and is intended to support ongoing operational expenditures, including public safety personnel, programs, equipment, contractual services, and other essential community services. Because these costs are recurring in nature, funding them with one-time reserves would create a structural budget imbalance. Absent corresponding revenue increases in future years, the city would either be required to reduce service levels in FY2028 or implement larger revenue adjustments to address both ongoing cost of growth and the loss of one-time funding used in FY2027.
Why is revenue from property taxes lower than in past years? Is growth paying for itself?
For the first time since the Great Recession 15 years ago, the city is unlikely to experience property tax growth in FY 2027. Property tax revenue is down because of property tax re-evaluations, brownfield exemptions, and the “Blue Ridge loophole”. The County experienced a 40% increase in formal appeals and a 115% increase in property tax commission cases compared to the previous revaluation in 2020. There has also been a significant increase in the number of affordable housing developments receiving property tax exemptions, known as the Blue Ridge loophole. More property owners have taken advantage of the loophole which allows for the exemption of taxes if a non-profit entity owns as little as a 0.1% ownership stake in the property. Properties are eligible for this loophole without any clear requirements on affordability. Most of the exempted properties have average rent prices and no guarantee of long-term affordability. The City is projected to lose nearly $6 million in revenue from these exemptions alone. I am monitoring NC House Bill 1042 which would address the Blue Ridge loophole. As of June 1st, the bill had been referred to the Committee on Rules and Operations of the Senate.
We are also facing the reality that as Raleigh expands its borders, especially in greenfield developments far from existing services, the City has higher costs to provide water, public safety, and other vital City resources. We need to build new fire and police stations in east Raleigh where much of this growth is taking place. Regardless of whether these areas are annexed into the City (a City Council decision), the City is still on the hook to provide 9-1-1 operators, police and firefighters via mutual aid. If our personnel are closest to a resident in need, we answer the call. This is the typical arrangement between municipalities and counties across the country.
What is an acceptable vacancy rate for RPD and can these 23 new positions be filled?
The goal is 10% or less vacancies for RPD; the current rate is 9%. Most departments have 5% or higher vacancy rates due to attrition and the transition between retirees, personnel leaving, and recruiting and training new hires. RPD needs additional vacancies compared to other departments in order to bring on personnel for special events like Canes games, festivals, and other large gatherings in the City. RPD is adding a lateral training academy in addition to the existing two police academies to train more officers in a given year. They are also recruiting across the East coast and using the City’s competitive benefits package to recruit talented personnel. Chief Boyce is confident he can fill these 23 new positions.
How does RPD address traffic enforcement?
Traffic enforcement remains an essential function of every police officer and is a critical component of proactive policing and roadway safety. While responding to calls for service remains the primary responsibility of patrol personnel, officers are expected to conduct traffic enforcement as part of their routine patrol duties whenever feasible.
The Raleigh Police Department currently maintains dedicated traffic enforcement resources within multiple divisions. The Traffic Enforcement Unit, assigned to Special Operations, consists of one Sergeant and seven officers. Additionally, the DWI Unit within Field Operations is staffed by one Sergeant and four officers. The Department’s 23 newly hired officers will be assigned to Field Operations, which will further enhance patrol staffing and support continued traffic enforcement efforts citywide.
Year-to-date enforcement activity reflects continued proactive efforts and measurable increases compared to the same period last year. DWI arrests have increased by 29%, citations issued have increased by 17%, and overall traffic stops have increased by 7%. These increases demonstrate the Department’s ongoing commitment to traffic safety, impaired driving enforcement, and reducing hazardous driving behaviors throughout the city.
How will Leaf Out (City plan to plant 24,000 trees by 2032) be funded?
My goal is for 4,000 new net trees to be planted by the City or with City resources in the next fiscal year (by June 30, 2027). If we can maintain that schedule each year through June 30, 2032, we will have met our total 24,000 goal in time for the City’s 240th anniversary. I will be working with Parks leadership and the City Manager’s office to ensure accountability on these metrics.
In fiscal year 2027, the Parks Department is adding a permanent part-time position to coordinate Leaf Out and will dedicate the following funding sources to plant and maintain a minimum of 3,340 trees:
- NC Forest Service grant: 540 trees
- developer fees: 2,000 trees
- street tree funding: 300 trees
- supplement planting funding: 500 trees
I’ve asked Parks to determine baseline tree planting figures (planting totals from previous years) in order to show how many new net trees will be planted. I’m not convinced that we have sufficient funds allocated to be successful yet.
How much monies from the Parks budget are dedicated to invasive species management? What are the goals and anticipated outcomes of the City’s invasive species management activities in fiscal year 2027?
There is $350,000 budgeted in FY27 for invasive species removal at various parks throughout Raleigh as part of the one cent equivalent of property tax for parks maintenance. This amount is also budgeted in FY29 and FY31 for the same purpose. For more information on the City’s invasive species program, visit raleighnc.gov/invasive-species.
The Community Engagement Dept will add a Community Relations Analyst to support the Engagement Network Program expansion which includes CACs. There is also additional operational funding for new tiered membership benefits implementation. What will be the role of this community relations analyst and how should groups like CACs expect to benefit? What are the new tiered membership benefits?
The Community Relations Analyst will support the Engagement Network (EN) by:
- Processing applications for the EN.
- Meeting with EN users and explaining benefits
- Overseeing approval and distribution of benefits, including:
- Access to General Membership Funds
- Free Access to Community Centers
- Presence on the City Website
- Equipment Rentals
- Printed Flyers and/or Mailers
- One-on-One Consultations
- Priority Access to Community Engagement Department Participation Request
- Invitation to Community Cares Collaborative (CCC)
- Invitation to Citizens Leadership Academy (CLA)
- Sending monthly communications to Engagement Network users, including Citizen
- Advisory Councils (CACs), highlighting upcoming opportunities for participation.
- Tracking and reporting EN data.
The Engagement Network uses a tiered structure designed to help users grow their capacity and impact. As users make use of available resources, they can move through the tiers and expand their community influence. All approved users—excluding Citizen Advisory Councils—enter the Network at the General Membership level. Citizen Advisory Councils (CACs) are grandfathered into Tier 2 and have access to all General Membership, Tier 1, and Tier 2 benefits.
General Membership Benefits
- Access to General Membership Funds (Up to $300 annually)
- Free Access to Community Centers
- Presence on the City Website
- Equipment Rentals
- Printed Flyers and/or Mailers (Up to 100 printed flyers and/or mailers within the first year of joining)
- One-on-One Consultations
- Priority Access to Community Engagement Department Participation Request
- Invitation to Community Cares Collaborative (CCC)
- Invitation to Citizens Leadership Academy (CLA)
Tier One
- Eligibility for a professional development Certificate Program through a higher education partner.
Tier Two
- Eligibility for Engagement Network Grants. Selected applicants can receive $1,000 in funding (with a required match of at least 50% of the costs of a project) for projects that expand community impact.
- Eligibility to receive a Zoom license to support their meetings.