As Raleigh continues to recover from the recession, City
Manager Russell Allen's proposed budget keeps property taxes steady while
increasing utility bills, adding 40 new positions and giving employees a 3
The budget for fiscal year 2013-14 totals $705.23 million in spending. Up from $679 million this past year, it's the highest in city history and a reflection of its growth.
"This is the first time we've exceeded a $700 million budget," Allen told the council.
The primary change Raleigh residents will notice on their bills is a 14 percent increase in sewer rates. That represents a $3.74 monthly increase for the average household. That includes a hike in water and sewer administrative fees by 92 cents a month.
The administrative fees aim to cover 5 percent of the utility system's debt payments. Overall, the hikes would generate an additional $13.9 million in revenue. With infrastructure improvements alone, the city's debt service will increase $8 million in the coming fiscal year. Those upgrades are projected to cost $417.3 million over the next five years.
Trash fees, stormwater fees and business privilege license fees would all stay the same.
Employees can look forward to a 3 percent merit pay increase depending on their annual performance reviews. That's projected to cost the city $5.9 million.
Last year's merit raise was $1,000, and in 2011 city workers got a $500 one-time bonus in an effort to save money.
40 new positions
Allen recommends creating 40 new positions -- a big change after lean years in which 72 jobs were cut. Fourteen of those would staff new park facilities set to open in the next year, including the Halifax Community Center and the new interpretative center at Mordecai Historic Park.
The budget would also add five employees in 911 communications, two fire marshals, three GIS workers, two planning and zoning employees and an additional city attorney. Other new hires will work in public utilities and other departments.
Allen calls for spending $148.6 million in the next fiscal year on new facilities, infrastructure upgrades and other major projects. Among the highlights:
--$26 million to renovate the Duke Energy Center for the Performing Arts and maintain the Raleigh Convention Center
--$8 million to replace two aging fire stations on Poole Road and Lake Boone Trail
--$1.5 million to renovate two little-used plazas at the center of Fayetteville Street on each side of the old Wachovia building
The spending is made possible in part by sales and property tax revenues that have finally returned to pre-recession levels.
"We are just now beginning to dig out of the greatest recession I've seen in my lifetime," Allen said.
Allen's budget proposal will likely see plenty of tweaks before it becomes official in late June. In addition to the public hearing, the council has scheduled four budget workshops in June, the final month of Allen's employment with the city after the council voted in April to hire new leadership. His last day as city manager will be June 30.
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