The Raleigh City Council has approved a $1.78 billion budget for the fiscal year 2026 without implementing a tax increase. The decision was reached unanimously, maintaining the property tax rate at 35.50 cents per $100 valuation.
City Manager Marchell Adams-David had presented the proposed budget on May 20, which focuses on supporting the city’s workforce and strategic investments in services. It also aims to enhance transparency in capital projects planning.
The General Fund operating budget is set at $657.1 million, with significant investment directed towards a classification and compensation study for city employees to align job descriptions and salaries with market standards. Additional funds are allocated for Dix Park development, a second fire academy, and cybersecurity enhancements.
A capital budget of $616.9 million will continue funding affordable housing, parks operations, street maintenance, and pay-as-you-go projects without relying on bond funding. The five-year Capital Improvement Program totals $2.5 billion for fiscal years 2026 through 2030.
Despite economic uncertainties affecting service costs and project expenses, fee increases are limited to an average of $4.33 or 0.29 percent for homeowners using Raleigh Water, Stormwater, and Solid Waste Services.
The “Steady State” approach adopted by the city allows flexibility in planning essential capital needs by directly contributing revenue to the Debt Service Fund rather than through the General Fund.
“The theme of the FY2026 proposed budget, ‘Our Greatest Asset: Our Workforce,’ is illustrated by the implementation of a comprehensive classification and compensation study,” stated Adams-David.
Fiscal Year 2026 begins on July 1 and runs through June 30, 2026.
Public input was encouraged with work sessions held each Monday in June at City Hall following its proposal presentation on June 3rd during a public hearing.
