The Finance Department operates as a support area within the City of Raleigh and reports to the City Manager. Our services include treasury functions, accounting, purchasing, revenue management, payroll, financial reporting and risk management.
In performing a wide variety of functions, our Finance employees strive to always provide a quality service to over 385,000 citizens of Raleigh, 183,000 utility customers, 4,000 employees within the City and, of course, to City Management and the City Council.
The City has maintained a credit rating of AAA by Moody's and Standard & Poor since 1974.
The City's fiscal year is July 1 through June 30.
Procurement is responsible for the overall conduct or oversight of all purchases of City of Raleigh Equipment supplies and services. More on Doing Business with the City
Accounting and Financial Reporting Services
The Accounting and Financial Reporting Services Division combines the areas of general accounting, accounts payable, and financial reporting. Reporting directly to the Controller, the division manages the general ledger for the City and its monthly and year-end close-outs.
The division is responsible for the payment of all City of Raleigh obligations. Most goods and services are procured utilizing a purchase order system. Standard City payment terms are net 30 days. The department acquiring the goods and services must initially authorize payment. The City pays by invoice, not by statement. As the payer of City obligations, it is our goal to make payments to vendors in a timely and efficient manner.
The City is required to include in its comprehensive annual financial report certain schedules and related information on long-term obligation maturities and debt service requirements.
Treasury Services is responsible for debt management, investment management, and banking activities for the City of Raleigh. Other functions of the division include financial modeling and analysis, revenue projections, and departmental budget development.
The investment policy of the City is guided in large part by State Statute G. S. 159-30, whereby investments in certificates of deposit, repurchase agreements, secured time deposits, bankers' acceptances, commercial paper, United States government and agency securities and the North Carolina Capital Management Trust are made. The deposits of the City are governed by State Statute 159-31.
The City's policy stipulates that investments be fully secured by pledged collateral, delivered securities or United States government guarantee with all securities, including repurchase agreements and pledged collateral, being delivered to a third party safekeeping account in the name of the City.
The legal debt limit imposed by state statute is 8% of assessed value. However, as a matter of internal policy, the City has maintained a debt position far below its legal limit and would consider the range of 2.5% - 3.0% as an appropriate, self-imposed maximum debt range.
Debt service funding resources for the general debt of the City are the general revenues of the City, including property taxes, while the utility debt is funded totally from water and sewer service revenues.
General obligation debt is the most common type of debt incurred by the City and is comprised of both general and utility debt obligations. All general obligation debt is secured by the full faith and credit of the taxing power of the City.
The City is bound by a rate covenant to set rates such that the income that is available to pay the debt service requirements on the revenue bonds will not be less than a certain percentage of the debt service requirements.
In addition to general obligation and revenue bonds, the City has entered into various installment financings and various equipment installment purchase agreements.
The City does not sell bonds directly from City Hall. Typically, general obligation bonds issued by the City are sold through a competitive bid process handled by the North Carolina Local Government Commission. Other bonds or long-term debt issues may be sold through a negotiated sale process.
In either case, the bonds are purchased by a bank or investment firm and then re-marketed (re-sold) to institutional investors and/or to private individuals. Contact a local bank or investment firm to find out details of how to purchase the bonds through the secondary market.
The Finance Department provides numerous internal services to other City departments.
The Payroll Division is primarily responsible for ensuring that all City employees receive accurate and timely paychecks net of the appropriate payroll deductions, accounting for and managing 37 different payroll earning codes, reconciling and adjusting all payroll withholding accounts.
The Risk Management Division oversees:
- Property/Casualty Claims
- Workers' Compensation Claims
- Risk Financing - protection from potential losses through a combination of self-insured retention and purchase of commercial insurance for primary and/or excess coverage
The City uses the services of an independent financial advisor from time to time depending on the scope of the project and the complexity of the financing structure. The same financial advisor is often engaged on multiple projects for the sake of continuity and economies of scale.
To demonstrate excellence in our Financial Services to the City Organization and our customers through a commitment to continuously improving within our philosophy of "People Helping People."
- We commit to perform all duties with the highest ethical standards and integrity.
- We commit to the involvement and empowerment of all employees so as to provide each person both responsibility and accountability over work areas performed by the Finance Department.
- We commit to the common objectives of identifying the ongoing needs of our internal and external customers, determining how to meet those needs, implementing effective improvements and monitoring how well the needs have been met.
- We commit to the most efficient application of City resources by using the latest technology where possible and through providing employees ongoing educational and training opportunities.
- We commit to quality, flexibility and innovation in providing financial services that not only meet customer needs but also exceed the expectations of those that use and depend on our services.