The City of Raleigh today released its proposed budget of $1,765,166,204 for fiscal year 2027, with a general fund budget of $652.8 million. The plan overall allows for needed investments to maintain and improve service levels in key areas with a primary focus on public safety.
To sustain essential services and deliver key community priorities, the FY27 proposal includes a 1.7 cent property tax increase, equal to approximately $67 annually for a median Raleigh household. The tax increase was necessary to promote new investments after City leadership successfully closed a $13 million base budget gap through strategic budget realignments, eliminating open positions, and holding vacant positions open.
“The Proposed Budget protects our existing services while adjusting to the realities of the fiscal pressures we currently face,” Adams-David said. “It reflects difficult decisions, grounded in fiscal stewardship, that position Raleigh to sustain the high standards of service our community deserves.
“Even in the face of economic uncertainty and constrained revenues, this budget advances the priorities that matter most to our residents: a safe city, a reliable infrastructure system, vibrant public spaces, and responsive services delivered with integrity and care.”
The following are summary highlights of the FY27 budget. The full budget and the “Proposed Budget in Brief” document provide significant additional details. Additional narrative is available in the Manager’s Letter at the beginning of the budget.
Public Safety
Over the past two fiscal years, the City has taken significant steps to meet the needs of our public safety departments, including an 11 percent raise and higher starting salaries for public safety this fiscal year. In this budget proposal, the City begins implementation of the first phase of the staffing study, adding 23 sworn police officers, six call takers for 911, and three fire marshals. In support of the Fire Master Plan, 12 firefighters were added and the second fire academy is made permanent.
Public safety investments include technology and software to manage investigations and increase accountability for the police, plus additional security for 911 call dispatch in emergency communications. Police received operational dollars to lease facilities for the new Downtown District Station and the Special Operations Division. Station renovations, upgrades, and maintenance are budgeted for fire, with capital project planning for a new fire training center and station in support of the master plan.
Investing in Resilience
This budget invests in initiatives and infrastructure to extend Raleigh’s high-quality services for a growing population. A $2 million general fund subsidy will continue the two-hour free parking at five downtown City-owned garages, supporting the vibrancy of small businesses downtown. Positions are added in Planning and Development (six) and Solid Waste Services (21) at the recommendation of the staffing study. Other investments in safety, parks, technology and the new City Hall are detailed in the Proposed Budget in Brief.
Capital Budget
The $503.4 million capital budget includes one-penny equivalent investments in affordable housing, transportation, parks maintenance, and general government. Affordable Housing dollars continue the affordable rental program, housing rehabilitation, loan servicing and rental development. Transportation projects include street resurfacing, sidewalks, and Vision Zero improvements. The Proposed Budget in Brief contains additional details.
Bonds
Last year, the City implemented a Steady State approach that moved a portion of property and sales taxes directly to the debt service fund. By continuing to “save” dollars as bonds are paid off, the City created capacity to borrow $203 million every four years without raising taxes. The bonds’ approval is not a part of the budget process, and the bond referendum was considered separately at Tuesday’s Council meeting. More information on the bond is on the website.
Next Steps
The City will hold a public hearing on the budget at 7 p.m. June 2 in Council Chambers. The Council will hold budget work sessions on Mondays beginning June 1 until the budget is passed. The budget must be approved before the new fiscal year begins July 1.
