Raleigh City Council Budget Work Session - April 7, 2025
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Raleigh City Council Budget Work Session - April 7, 2025
The Raleigh City Council held a budget work session on April 7, 2025, at 4:00 PM in the City Council Chamber. The meeting covered FY2026 agency grant recommendations, Raleigh Water Enterprise, Stormwater Management Enterprise, and Solid Waste Services. The council approved motions to authorize notifications and system programming for proposed rate increases, with final approval contingent on the full budget adoption later. Councilmembers Jonathan Lambert-Melton and Christina Jones were excused.
Agency Grant Recommendations
Katie Conyers (Grants and Program Manager) provided an overview of the City of Raleigh’s competitive grant programs in arts, community enhancement, and human services. Key details: maximum funding request is 25% of an agency’s prior-year operating expenditures; agencies may receive awards in only two grant categories; applicants requesting $25,000 or more must submit an audit. Tony Gatson (Arts Commission) reported that 35 organizations submitted applications requesting over $2.3 million. New applicant Little Raleigh Radio was recommended for funding. Robert Quartz (Human Relations Commission) stated that 31 competitive nonprofits received $810,500 in total awards. Nick Doula (Housing and Neighborhoods) recommended four community enhancement grants totaling $200,000 in federal Community Development Block Grant funds. No formal vote was taken; the recommendations will be included in the final budget approval.
Raleigh Water Enterprise
Witt Wheeler presented the FY2026 budget. Highlights: over 26,000 fire hydrants inspected, 244,000 811 tickets, 223 water main breaks, 2,500 miles of water main, 21.5 billion gallons produced, 217,000 metered services. The operating budget is $372 million (48% operating, 52% capital). The 10-year capital improvement plan is $2.2 billion, with pipe replacement (32%) and water treatment plant expansion (E.M. Johnson, $375 million) as major items. The proposed rate increase for a median single-family home is $1.91/month (3.5% increase), bringing the total bill to $55.36. The customer assistance program helped 2,700 customers with $535,000. Councilmember Harrison asked about future rate increases; Wheeler noted that Raleigh’s rates are lower than neighbors due to existing infrastructure reuse. Councilmember Silver asked about pipe lifespan (100 years for new ductile iron) and the Little River Reservoir project (needed by 2045–2062). Councilmember Patton asked about consequences of no rate increase; Wheeler stated capital project deferral would be necessary. Council voted unanimously to authorize Raleigh Water to program the billing system and notify largest customers of the proposed rate increase.
Stormwater Management Enterprise
Wayne Miles presented the FY2026 budget. Key points: FY26 will be the first year using debt service to fund capital improvements, increasing the CIP from $14 million to $31 million. The proposed fee increase is $0.57/month for single-family homes (from $7.65 to $8.22), raising the total budget from $39.2 million to $42.7 million. The Stormwater Management Advisory Commission unanimously endorsed the plan. Councilmember Patton asked about trade-offs without the increase; Miles cited reduced capital project delivery. Councilmember Harrison inquired about the fund balance restoration ($7 million this year, similar next year). The council voted unanimously to authorize using the proposed rate increase for billing system programming and to notify the largest 250 customers.
Solid Waste Services Overview
Gregory Jenkins II presented the FY2026 budget. Accomplishments: reduced vacancy rate from 24% to 6%; added 8,000 service points since 2017 without increasing fleet or staff. Proposed monthly fee increase of $1.85 (7.7% to $25.95), a yard waste tip fee increase, and a new bulky pickup fee of $35 per pickup (previously free every 90 days). The fund balance subsidy drops from $5.8 million to $500,000, achieving full enterprise status four years early. Discussion: Councilmember Harrison asked about switching to weekly recycling and biweekly trash; the city manager cautioned against it due to resident opposition. Councilmember Silver noted that out-of-service vehicles and staffing are pressing issues. Councilmember Patton asked about downtown and transit stop efficiency; Jenkins noted ongoing conversations with DRA. The council voted unanimously to authorize notifications and system programming.
Key Outcomes
- Agency Grant Recommendations: No formal vote; will be included in final budget approval.
- Raleigh Water: Motion passed unanimously to authorize billing system programming and notification of largest customers about the proposed rate increase.
- Stormwater Management: Motion passed unanimously to authorize billing system programming and notification of the largest 250 customers about the proposed rate increase.
- Solid Waste Services: Motion passed unanimously to authorize notifications and system programming for the proposed fee increases and new bulky pickup fee.
Meeting Transcript
It didn't be the two. And the first item is the agency grant recommendations, and I have a bunch of folks, I think, presenting Katie Conyers from Budget, Nick Doula from Housing, Tony Gatson from the Arts Commission, and Robert Quartz from Human Relations. Oh, and I should say I always uh that we have two excused absences today, Jonathan Lambert Melton and uh Christina Jones. Good afternoon, Mayor and Council. My name is Katie Conyers, and I am the grants and program manager in budget and management services. The focus of this presentation will be our FY26 agency grant recommendations. Here is today's agenda. First, I will provide a quick overview of the City of Raleigh grants program. Following the overview, I will invite representatives from the City of Raleigh Arts Commission, the Human Relations Commission, and our Housing and Neighborhoods Department to present their respective programs, agency grant recommendations for the upcoming fiscal year. As we have a full agenda this afternoon, I will keep this overview very brief. The City of Raleigh offers competitive grant programs in three areas that we will discuss today. Arts, community enhancement, and human services. Per council policy, the maximum funding request for any agency is 25% of that agency's prior year actual operating expenditures. Agencies may only receive awards in two grant categories. So for example, an organization may receive funding through both the Raleigh Arts and Human Services Grant Programs. Finally, all agencies that make funding requests of $25,000 or more must submit an audit to be reviewed by our finance department. Before we share the specific recommendations for each area, I wanted to show a breakdown of the funding recommendations for our human services grants, arts grants, and direct allocations for human services and arts residence companies. This is an additional two hundred thousand dollars. Nearly 7,000 children were served through arts education programs, supported by grant funding. Notable examples include community music school, which offers one dollar music lessons and instruments to families facing economic hardships. Raleigh Music Collective, which provides instruction to local refugee families. We are also excited to highlight this year's Raleigh Parks Children's Day and Youth Music taking place this Saturday, April 26th, taking place Saturday, April 26th from one to five at Moore Square. This collaborative event in partnership with the Consulate of Mexico will feature free performances by the Triangle Youth Music Consortium and engaging arts activities throughout the afternoon. We warmly invite the mayor and city council members to join us and witness the power of arts grant funding in action. This year, thirty-five organizations submitted grant application requesting over $2.3 million in funding after a thorough review process led by a committee of four arts commissioners and eleven community panelists with expertise in nonprofit management, finance, community engagement, and the arts. A new applicant recommended for funding this year is Little Raleigh Radio, an online platform dedicated to amplifying local voices through radio, podcasts, and workshops. Their grant will support a jazz festival featuring local musicians and youth jazz ensembles. The application process remains focused on fairness and equity, with each proposal evaluated against consistent criteria, artistic merit, organizational management, financial accountability, and community engagement. These grants are not just investments in individual organizations. They are investments in our neighborhoods, our youth, and the creative life that makes Raleigh such a vibrant, inclusive city. Finally, we respectfully request that City Council approve the FY 2025-26 arts grant funding recommendations as presented. Thank you again for supporting the arts in our community. Thank you. Thank you. Okay. Thank you. Thank you again to Tony Gadston for sharing those recommendations with council. Next, I will invite Robert Quartz, Secretary for the City of Raleigh Human Relations Commission to present recommendations for grant funding. Did our slide make it? How do we advance? There's a cover slide. I don't present. There you go. Okay. Mayor, Steam Council, my name is Robert Quartz, and I have the pleasure to serve as the Secretary of the Human Relations Commission, and this year I was co-chair of the Human Relations Grant Committee. The Human Relations Commission works to promote human dignity, equal opportunity, and harmony among Raleigh's residents. We have the task to promote activities and programs for residents without regard to race, color, creed, gender, age, sexual orientation, or national origin. As the challenge to present grants to nonprofits that deliver needed services to low-income residents, including older adults, youth, housing insecure, and persons with disabilities. This year we had two sets of nonprofits applying. We had 31 competitive nonprofits.
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