WINSTON-SALEM, N.C. — When City Manager Marcus Jones unveiled the FY25 budget last summer, he warned city councilmembers it would be challenging to continue to produce a revenue neutral budget while adding and maintaining services.
Councilman James Mitchell reminded his colleagues about that.
2024 CHARLOTTE CITY COUNCIL RETREAT:
“The city manager warned us though, if you don’t increase property tax last cycle, you are going to have tough decisions to make in the future,” he said. “Council, this is the future now.”
The future is here and Charlotte City Council is staring down uncertainty over how to fund its needs and wants.
Charlotte City Councilmembers are currently at the Graylyn Conference Center in Winston-Salem for their annual budget retreat. Councilmembers heard from Budget Director Ryan Bergman on Monday afternoon.
City council hasn’t raised its property tax in five years. The streak may soon end.
“I want to apologize to those of you who are on the budget committee this year because it is going to be a little bit harder,” Mayor Vi Lyles said.
City staff showed council a chart showing the city is expecting an extra $32.6 million in new revenue. That’s $200,000 shy of what the city needs to cover its new expenses like increases in health care and retirement costs. It also doesn’t include pay raises for employees or any new services.
It’s a bond year too. While the city will be able to ask voters for $50 million for affordable housing, it can’t ask for more without taking those funds from another priority like sidewalks or resurfacing.
Councilmember Dimple Ajmera says everything is on the table, but it is early in the process.
“We have some tough decisions to make in terms of increased investments while also balancing our revenue,” she said.
Any sales tax increase would need authorization from the legislature, which has been resistant to Charlotte’s past requests on the topic. Charlotte City Council can raise the property tax without the state’s blessing.
The City of Charlotte is hosting a “Budget 101″ session at Camp North End on Jan. 30 at 6 p.m. Residents will be able to learn more about what makes up the city’s budget. There will also be listening sessions scheduled in the future for community members to directly engage with city leadership on budget priorities.
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