April 6, 2026 Budget Work Session

Highlights of the City of Raleigh Budget Work Session
April 6, 2026

This session served as one of the final briefings before the formal adoption of the Y2027 budget.

Departmental Operations’ Enterprise Funds

Solid Waste Services: Shikha Gupta provided an overview of the department’s performance and its status as an enterprise fund. The discussion focused on service delivery successes and the necessity of rate adjustments for the fiscal year beginning July 1, 2026, to maintain the fund’s sustainability.

Parking Enterprise Fund: Caitlyn Parker presented follow-up data from the March 9 session. The presentation detailed specific program and rate modifications designed to mitigate projected budget deficits and stabilize the fund’s long-term outlook.

She discussed on-street, off-street, and event parking. Staff recommendations included keeping the free 2-hour parking as it is and recommended a consistent rate of $1.50 hour for metered parking.

Grant Allocations’ Recommendations

External Agency Grants: Budget and Management Services (BMS) staff reviewed the formula-based allocation process.

Sector-Specific Funding: Representatives from the Arts Commission and Housing and Community Development presented their formal funding recommendations based on their respective application and review cycles.

Long-Term Planning & Capital Improvements

FY2027–2031 CIP: The five-year Capital Improvement Program was discussed. Key highlights included a status update on the city’s “steady state” planning approach and the introduction of  recommended 2026 General Obligation bonds alongside future limited obligation projects.

Traffic Safety at Intersections: Mitchell Silver asked about future changes at intersections to protect pedestrians, which he said was a concern with his constituents.

Fiscal Outlook & Challenges

Budget Summary: Sadia Sattar addressed the overall health of the FY2027 Proposed Budget.

Primary Concerns: There are stagnant property tax revenues and various competing funding needs across city departments.

There is a budget gap of $13 million, and so taxes will likely need to be increased.

One issue is: The “rent-a-nonprofit” loophole in North Carolina that allows for-profit developers to obtain 100% property tax exemptions by giving a non-profit a nominal stake (sometimes as low as 0.1% or 1%) in the property. The city needs to wait for state legislators to change that law so that developers will pay their fair share of taxes.