No Charlotte property tax increase in 2022; sales tax increase for transit possible

CHARLOTTE — Charlotte city manager Marcus Jones told Charlotte city council he does not project a property tax increase will be included in the Fiscal Year 2023 budget.

Charlotte city council members met in Winston-Salem Tuesday for the second day of their annual budget retreat.

With the elections in spring 2022, this year’s budget process will be different. Depending if there is a runoff for a federal race, the city’s general election may be as late as May 2022. That would mean the incoming elected officials would only have a few weeks to pass a budget.

With that in mind, Charlotte city council appears to be on the same page and will pass the FY23 budget before they leave office.

Councilman Tariq Bokhari said that is likely okay if the budget is as normal and non-controversial as possible.

“If it is a calm budget that is not very controversial, that is probably OK,” Bokhari said.

Other leaders said trying to rush new budget discussions with a new council would be challenging.

“I think it would be very awkward to try and do all the workshops and the runup to the council vote and then have brand new people participate in the vote on it right after they take office,” Councilman Ed Driggs said.

Mayor Vi Lyles says she is in favor of the current council voting.

As of now, there is a $7 million dollar budget gap. That’s typical for this stage in the process.

Timeline adjusted for Charlotte’s proposed transit expansion plan

Timeline adjusted for Charlotte’s proposed transit expansion plan

Charlotte City Council revisited plans for a Transformational Mobility Network. City leaders are currently in Winston-Salem for their annual budget retreat after being advised by a representative for the Charlotte Regional Business Alliance that there is a “cost to doing nothing.”

The city unveiled a new timeline for the projects and emphasized on the ones not involving rail. Among the changes, the city plans to invest more in non-transit projects. The new timeline centers around a referendum in fall 2022. If the General Assembly allows the referendum and voters approve it, the sales tax would kick in July 2023.

“We know we got to do something especially as affordable housing gets more and more scarce,” Councilwoman Victoria Watlington said. “We got to get people in and out of the region.”

The first projects to receive funding will be bus-focused. The sales tax increase will allow new routes and faster pick up times as part of the “Envision My Ride” plan by the Charlotte Area Transit System.

“It is crystal clear to me that we can’t get to a healthy bus system, which should be the spine of any transit program. We are not going to have that unless we have a new revenue source,” Mayor Pro Tem Julie Eiselt said.

The city has also changed its tune on the Red Line project, which is the long-stalled commuter rail line proposed for the Lake Norman community. If the project is determined to not be feasible, the impacted towns will get more money for those types of projects.

If the General Assembly allows a sale tax increase and it gets on the ballot, Watlington said the public needs to know what they are getting.

“If these things are going to referendum, every single person that shows up gets a vote and they are going to want to know what is in it for them,” she said. “When you start talking about dollars coming out of people’s pockets, everyone is not going to want to take one for the team.”

The day wasn’t without drama.

Charlotte City Council debated how to best engage with leaders in Raleigh. Councilman Tariq Bokhari and Councilman Braxton Winston asked for the Transformational Mobility Network to be sent to the intergovernmental committee so they can start engaging in talks with leaders in the General Assembly. The motion originally passed on a technicality. Councilman Matt Newton was not present when the vote took place and he was marked as a yes vote.

But after a brief 15 minute stretch break, council returned and there was a motion to revote. When council voted again, Newton voted no. Ajmera also changed her vote to a no. City leaders opposed to the committee assignment say they are working on building support with the towns and do not want to make the Transformational Mobility Network as all about Charlotte.

Bokhari was critical of the vote and voiced his displeasure on Twitter:

“Members of the #NCGA and electeds of the surrounding towns, the #CLTCC just pulled a sketchy fast one at our retreat to not allow us to actually work directly with you on the transit plan, rather leave it to the back rooms and powers that be. This is why it will fail yet again.”

House Speaker Tim Moore responded to Bokhari:

“I think any transit plan needs to be done with full public input and collaboration with the General Assembly.”

Newton said he missed the vote because his parking expired and he had to renew his time. He said when he got to his car he realized he forgot his wallet and had to go back and get it in order to pay.

Other business

Charlotte city council voted 8-1 to approve $60 million in COVID-19 relief. Of the $60 million, $17 million is slated for housing, $16 million for workforce development and employment and $27 million is slated for community vitality.

Council members also heard an update on Charlotte Water nonpayment. Special Assistant to the City Manager Shawn Heath told council 13,600 Charlotte Water customers are eligible for disconnection due to nonpayment. That amounts to 5% of customers. The city says the past due balance is $10.7 million as of Oct. 22.

The city plans to ramp up disconnections over the next 6 months. Residents can get connected to assistance for rental, mortgage and utility payments by calling 311.

(WATCH BELOW: City of Charlotte transitioning fleet to electric vehicles)

City of Charlotte transitioning fleet to electric vehicles

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