CHARLOTTE, N.C. — Charlotte city leaders are facing a financial pinch as they try to figure out how to spend your money next fiscal year while dealing with an $18 million hole created by state lawmakers.
City Council members are waiting on state leaders to decide who will pay more taxes to close the gap the repeal of the business privilege license tax left. It's a tax businesses paid to cities where they operate.
Charlotte city leaders called it a mess that needed to be re-formulated, but not eliminated because it puts them in the position they are in now. They have to make some tough decisions without the revenue that tax once created.
"Our challenge is to find out where we can tide ourselves over," said councilman Ed Driggs, R-District 7.
City Manager Ron Carlee made it clear. He is not interested in raising property taxes to fill the gap while piecing together next fiscal year's budget.
"Increasing a property tax which is paid mostly by residential property owners to substitute a tax paid by 100 percent of businesses, I think is really a non-starter in this community," said Carlee.
City leaders expect a $9 million surplus from property and sales tax revenue, but that will go towards savings and capital expenses. Carlee said Charlotte's economic trend is extremely strong but the loss of revenue from the business privilege license tax hold the city back from capitalizing on any gains.
"The loss of the business privilege license tax for next fiscal year basically wipes out all of our economic growth and we end up with flat revenues," said Carlee. "It will basically be a flat or slightly reduced budget."
The primary plan to endure the loss could be to hold off on pay increases for city employees and implement hiring freezes until the General Assembly makes good on a promise to replace the lost revenue.
"Supposedly, everybody is committed to doing something but I haven't seen any movement to my liking yet or that there is a sense of urgency at the legislative level," said councilman Greg Phipps, D-District 4.
Ultimately, lawmakers have to designate someone to pay more taxes to make it up. City leaders are hoping the state will deliver.
"I think primarily looking to the business community, but if it's expansion of sales tax. I mean, they control all of the cards," said Carlee.
Channel 9 tried to ask Gov. Pat McCrory when the General Assembly will take up this issue, but he wouldn't take questions at a press conference in Concord Friday.
City leaders may consider making sure about $11 million goes toward extra police and fire needs.
Budget officials said police needs $5.8 million for new staffing.
Fire needs $5.1 million for a ladder company in the Northlake area and an engine company in the Eastland area.
Council may also consider building a bridge over I-85 in north Charlotte two years early with voter-approved bond money.
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