Mecklenburg proposes property tax increase. How much it will cost homeowners
Mecklenburg County property owners would pay more in taxes under the proposed county budget unveiled Wednesday.
County Manager Dena Diorio told county commissioners in her budget presentation a property tax increase of 0.96 cents per $100 in valuation is necessary to balance the county’s budget in a “challenging year.” That would cost the median Mecklenburg homeowner about $36 a year.
“This was not the budget I hoped for in my last year with the county,” said Diorio, who is set to retire in June.
Diorio pointed to rising costs, slowing growth in sales tax revenue and uncertainty about the economy, federal funding and policy as key drivers of her proposed budget. She attributed “almost half” of a $29 million deficit to county commissioners’ decision last year to tap into the “rainy day fund” to shrink that budget’s tax increase.
“We all agreed we would have to rectify that … And that time has come,” she said.
The are budget cuts “across nearly every county department,” but areas including education are slated to get more money under the proposed budget.
County commissioners will spend the next few weeks debating the new budget, which will take effect at the start of the new fiscal year on July 1.
How much would property tax increase cost homeowners?
Diorio’s proposed increase of 0.96 cents would bring Mecklenburg’s property tax rate to 49.27 cents per $100 of value.
County residents pay property taxes on land, buildings, cars and other property such as boats and some business equipment.
A property owner whose house is valued at $377,000, the median Mecklenburg home price, would pay about $36 more in taxes under the proposal, according to the county’s presentation. Someone with a house valued at $250,000 would pay about $24 more in taxes, and someone with a house valued at $600,000 would pay about $57 more.
The tax increase will cover the county’s $29 million deficit, Diorio said.
Education, seniors get more money
Diorio recommended the county fund all of Charlotte-Mecklenburg Schools’ budget request of about $699 million. The request is $28.3 million more than last year’s county funding for CMS.
About 93% of the county’s money for schools will go toward salaries, which CMS Superintendent Crystal Hill told county commissioners last week is critical to ensure competitive compensation for educators.
“We know that education is best served when you have a great teacher in every single classroom,” Diorio told reporters after her presentation.
Diorio’s budget also includes $3.4 million to expand the county’s pre-kindergarten program, Meck PreK. That money would pay for 10 new classrooms.
“This commitment to our four-year-old children is a significant investment in our future,” she said.
Diorio also recommended $49 million in county funding for Central Piedmont Community College, an increase of $1.7 million.
Other funding increases in the proposed budget include $2.3 million to expand home health and adult daycare programs for seniors and $2 million for the Charlotte Mecklenburg Library system to pay for 15 new employees and new collections.
County employees will get 3% raises at a cost of $15.7 million, with additional performance-based raises of up to 5% available.
Budget cuts in Mecklenburg proposal
The proposed budget includes $13.8 million in spending reductions across 25 county departments.
No county employees will be laid off, Diorio said.
Cuts were based on factors that included results, alignment with county commissioners’ priorities, whether other options were available to residents and department recommendations.
There are $6 million in nonprofit cuts. That includes ending the county’s Community Service Grant Program, which provided one-year grants at a cost of about $2 million.
“We looked at all the nonprofits that we currently fund on a regular basis and looked at things like performance, utilization of county dollars, department recommendations, cost per individual,” Diorio told reporters. “And really made some decisions about those that were, in our perspective, were not doing as well as some of the other nonprofits we fund.”
The county has $563 million in its rainy day fund, Diorio said. Her budget includes just $30 million in spending from that fund balance, the lowest amount in her 11-year tenure.
What’s next for Mecklenburg County budget?
County commissioners will meet again next Wednesday to further discuss the budget proposal ahead of a public hearing on the budget set for 6 p.m. Thursday at the Charlotte-Mecklenburg Government Center.
Members of the public can sign up to speak at the hearing by visiting mecknc.seamlessdocs.com/f/clerk, calling 980-314-2912 or emailing clerk@mecknc.gov.
The County Commission is scheduled to hold straw votes on the budget May 29 and adopt a final budget for the new fiscal year June 3.
