Raleigh budget proposes employee raises. What your property tax would look like
City of Raleigh employees would see significant pay raises under the city’s proposed $1.78 billion budget.
In an effort to recruit and retain workers, City Manager Marchell Adams-David is recommending full-time employees get either a 9% or 11% pay increase and part-time employees get a 5% pay increase.
“Raleigh, along with other cities around the country, we are having to do more with less,” said Sadia Sattar, budget and management services director. “What we have done is pretty extraordinary in this budget: implementing a full class and compensation study without a property tax increase. It’s really trying to focus on our people and making sure that we remain competitive.”
Adams-David presented the proposed budget during the Raleigh City Council meeting Tuesday afternoon.
“I’m impressed that we were able to do all this with no property tax increase,” said Mayor Janet Cowell. “That was something we heard loud and clear in last year’s election. That people said it turned on pocketbook issues. And the property tax increases have been unsustainable, and I would say ‘We heard you.’”
City property tax rate and fees
The proposed budget holds the property tax rate at 35.5 cents per $100 valuation.
The annual city property tax for a $470,000 home would remain $1,668.50. (The median sales price of a Wake County parcel was $470,000 in April.)
Some monthly fees would go up including:
- $1.50 increase for solid waste
- $1.91 increase for water and sewer
- 57-cent increase for stormwater
Property tax and sales tax are the two primary revenue sources for cities. Raleigh anticipates slower property tax and sales tax growth in the proposed budget.
Wake County had a revaluation last year that steeply increased property owners’ tax values. Many commercial property owners successfully appealed their valuation, leading to less property tax revenue than expected for the city.
Meanwhile, the city is projecting a slight loss of sales tax.
“This is a situation that is not just happening in Raleigh, but around North Carolina, Municipalities are just seeing their sales tax just get lower and lower.”
More money for public safety workers
The proposed pay raises would start in September.
They follow a study that found many pay ranges, particularly the minimum salary for positions, were lower than in neighboring municipalities and those close to Raleigh’s size. Some maximum salary ranges will likely come down, as they were higher than those of peer cities
The proposed budget boosts the starting pay for public safety employees.
- Fire fighter: $51,194 to $56,825, 11%
- Police officer: $55,331 to $61,417, 11%
- Emergency Communication call taker: $42,027 to $49,100, 17%
The budget also includes $1.3 million to add a second fire academy to help recruit more fire fighters.
“The theme of this year’s proposed budget, ‘Our greatest asset: our workforce,’ reiterates our commitment to the selfless public servants who deliver high quality services to our residents every single day,” said Adams-David. “Their energy, effort, creativity and commitment to excellence helps to create a capital city where everyone is supported, valued and respected.”
Funding for Dix Park
Another significant investment is $11.7 million in new funding for Dorothea Dix Park.
The proposed budget would add 10 new employees, five to maintain currently state-owned buildings and five to help program the soon-to-open Gipson Play Plaza.
The state is relinquishing control of its buildings on the 308 acre campus in 2006, a year earlier than expected, Sattar said.
“That was a big investment,” she said. “Ensuring the site is secure, ensuring that buildings are secure, evaluating those buildings and seeing can we salvage them, refurbish them, or are those building going to be torn down?”
The city will hold a public hearing on the proposed budget at 7 p.m. June 3.
Find the full budget at budget.raleighnc.gov.
This story was originally published May 20, 2025 at 2:08 PM with the headline "Raleigh budget proposes employee raises. What your property tax would look like."
