Highlights

  • Mayor Baldwin absent and excused
  • Significant gaps projected over the next five years as revenue growth projected to be less than expense growth­
  • Public Hearing on budget scheduled for June 3
  • Employment costs (salary and benefits) continue to rise significantly, yet City has significant vacancies and Raleigh’s minimum “Living Wage” barely covers the rent for a one-bedroom apartment in Raleigh

FY2024 Budget Development Update

https://go.boarddocs.com/nc/raleigh/Board.nsf/files/CP8SG67290EF/$file/20230220FY24BudgetOutlookPresentation.pdf

  • Projected Gaps 
    • FY2024: $(-.5-6.4M)
    • FY2025: $(-15.9M)
    • FY2026: $(-21.2M)
    • FY2027: $(-29.1M)
    • FY2028: $(-36.2M)
  • Current Revenue Growth is 1%
    • Uncertainty in sales tax projections
    • Property tax reappraisal will occur in 2024 (FY25 budget)
    • User fees continue to be elevated
  • Expenses are growing by 3.1%
    • Personnel & benefit increases
    • Interfund expenditures
    • Operating increases
  • March 13 Budget Work Session
    • Raleigh Water
    • Solid Waste Services
    • Stormwater Management
    • Planning and Development Services Fess
    • FY24 Budget Community Engagement Process
  • April 10 Budget Work Session
    • FY24-48 Capital Improvement Program
    • Agency Grant Recommendations
    • User Fee Changes Update
    • Human Resources Update
  • May 16 – Manager presents recommended budget
  • Weekly Council Work Session in June
  • June 3 Public Hearing

Human Resources Update

https://go.boarddocs.com/nc/raleigh/Board.nsf/files/CP8SE272403F/$file/20230223HumanResourcesUpdatePresentation.pdf

  • Changes proposed to Supplemental Retirement Plan and Living Wage Adjustments
  • Councilor Jones raises issues about Living Wage being inadequate to cover housing costs in Raleigh
  • Councilor Patton asks if there would be economies of scale to transition to a similar plan to what Wake County has; apparently that has been looked into
  • Contract with BCBS comes up next year; contracts go out for bids about every five years

American Rescue Plan Update

https://go.boarddocs.com/nc/raleigh/Board.nsf/files/CP8S9T71A2BF/$file/20230420ARPAUpdatePresentation.pdf

  • $73.2M in ARPA funding must be obligated by end of 2024 and expended by end 2026
  • $50.6M appropriated to date; $22.6M remains
    • Economic Recovery ($8.1M)
    • Housing/Homelessness ($11.0M)
    • Community Health ($13.5M)
    • Infrastructure ($11.0M)
    •  Nonprofit Agency Support ($3.0M)
    • Public Safety Initiatives ($2.0M)
    • Community Engagement ($1.3M)