New county projection says tax hikes must come with nearly $3 billion CMS request
If county commissioners support Charlotte Mecklenburg Schools’ nearly $3 billion bond request, residents will see several tax hikes by 2031, county staff say.
It would cost property owners a total of between 2 to 6 cents per $100 in valuation over the next eight years to pay off the county’s debt on CMS’ proposed projects, Mecklenburg County CFO David Boyd said Tuesday.
Boyd’s projections show increasing the tax a penny gives the county capacity to borrow about $1 billion for school projects. For an average value Mecklenburg home — $384,000 — a one-cent hike would add $38.40 to the owner’s yearly tax bill.
CMS’ plan includes 30 projects, with most involving new school buildings on existing properties. It also includes three new middle schools and a west regional athletic complex. School officials trimmed from an initial list of 125 total projects with a price tag of more than $5 billion with a goal of seeing a bond referendum on November’s ballot.
County commissioners also heard a list of non-CMS projects to be funded through new debt, the first time that could happen since the Great Recession in 2008, County Manager Dena Diorio said. Whether the county funds all or some non-CMS projects will affect how much it borrows for new schools.
In a scenario where the county funds all 30 CMS projects, the immediate impact would likely be a one-cent increase for property owners next fiscal year, which starts July 1, Boyd’s projections show.
Homeowners could see other property tax hikes after they get their bill this year, too. In the 2023 revaluation, Mecklenburg assessed all properties for the first time since 2019. Many homeowners — especially those who own homes with lower values — saw steep value increases.
Even if the city lowers its tax rate to bring in the same amount of money as last year, 92% of Charlotte homeowners are expected to see some property tax increase, city Budget Director Adrian Cox said last week.
If the city, county and its capital plan all require one-cent tax increases, a Charlotte resident with a $384,000 home would see a $500 tax increase next year, according to a hypothetical from Boyd. The hypothetical included a roughly $393 increase because of revaluation.
Commissioners requested to see the same potential impacts in a situation with zero tax increase or increases higher than one cent before deciding what projects to include.
County staff will return to commissioners May 9 with a final presentation before the next fiscal year budget is expected to be adopted in June.
This story was originally published April 11, 2023 at 6:26 PM.
