Charlotte City Council Committee Discussions – April 1, 2024

The Charlotte City Council held committee discussions on April 1, 2024, at the Charlotte-Mecklenburg Government Center. Acting Mayor Ed Driggs presided. Committees reported on budget, housing, community safety, economic development, transportation, and a detailed CATS budget outlook was presented. No formal votes were taken; all items were for information and discussion. Key upcoming dates include the manager's budget presentation on May 6 and the MTC approval of CATS budget on April 24.

Discussion Items

Budget, Governance & Intergovernmental Relations Committee (Councilmember Molina, Chair)

• Performance measurement goals for city services and peer comparisons were approved. Councilmember Mitchell requested sharing collaboration metrics with federal, state, and county partners.
• Stormwater and Charlotte Water presented annual financial updates. Stormwater will propose a 3.7% increase (about $0.53/month for single-family homes) due to inflation. The committee requested further analysis of residential vs. commercial stormwater rates (currently based on square footage).
• Charlotte Water projects a $2.2 billion capital investment plan over five years. Rate increases of $4.37–$4.55/month are proposed, but Charlotte Water remains among the lowest nationally. The new H2O Foundation will provide assistance to low-income residents. Councilmember Johnson requested flexibility for households facing catastrophic leaks, not just income-based aid.
• Councilmember Driggs noted that stormwater flooding events are occurring more frequently than historical 10-year storm models, and federal analysis is underway to update assessments. Councilmember Brown emphasized equity in rate structures.

Housing, Safety & Community Committee (Councilmember Mayfield, reporting for Chair Watlington)

• Community Safety Framework: Staff presented data from UNCC and other partners on evidence-based programs. Councilmember Johnson highlighted that 99% of justice-involved youth have mental health issues and 87% may have brain injuries, urging a trauma-informed, non-cookie-cutter approach. Councilmember Brown advocated for youth-led prevention and bringing stakeholders together. Councilmember Molina stressed intergovernmental coordination with county and schools.
• A Home for All: An update on the housing framework with 99 recommendations, narrowed to four priorities from FY24-28. A funding request of $12.3 million from the city (plus $14.3 million from the county) was presented via United Way. Several council members expressed concerns about the proposal, including the role of United Way and potential overlap with existing partners (Crisis Assistance Ministry, Habitat for Humanity). Councilmember Ajmera stated she had many unanswered questions; the committee is not yet on board. The source of income discrimination ordinance was clarified as separate from this request.
• Councilmember Ajmera emphasized the need to prioritize evidenced-based programs (Alternatives to Violence, hospital-based intervention, youth diversion) in the FY25 budget. City Manager Jones confirmed the budget will include an allocation for crime and youth.

Jobs & Economic Development Committee (Councilmember Mitchell, Chair)

• CRVA presented the state of hospitality and tourism: 1 in 9 Charlotte jobs are in hospitality; leisure/hospitality is the fourth-largest industry sector. Revenue is allocated into three buckets (convention center, tourism fund, NASCAR Hall of Fame) and can only be used for hospitality/tourism per state statute.
• Councilmember Mitchell highlighted three funded projects: Spectrum Center improvements, practice facility, and Carolina Theatre ($2 million). Councilmember Mayfield raised questions about free rental days in venue agreements (12 days at Spectrum, 5 at Bank of America Stadium).
• Councilmember Ajmera noted recent lawsuits in the Outer Banks challenging tourism dollar use, reinforcing the need for strict compliance. Councilmember Driggs cautioned against seeking expanded authority from the legislature, especially during the short session, and emphasized focusing on the sales tax for mobility instead. Councilmember Ajmera defended asking the question, given infrastructure deficits and homelessness.
• Councilmember Molina praised public-private partnerships and inclusion of underserved communities in events like the Presidents Cup.

Transportation, Planning & Development Committee (Councilmember Driggs, Chair)

• CATS Update: Ridership up 18% year-to-date, 65% of pre-COVID levels. Bridge inspections nearly complete (six remain, awaiting rail flag crews). Gold Line headways improved from 30 to 20 minutes. Vacancy rates dropped from 20-25% to about 10%. Riders are predominantly African American, low-income, and from zero-car households.
• Mobility Prioritization: Ed McKinney presented a framework for prioritizing 2,000 projects into 17 investment areas. Councilmember Molina highlighted East Charlotte needs and called for a town hall. Councilmember Brown requested simplified communication for District 3.
• Planning/UDO Update: Staff are refining N1 neighborhood place types after council referral. Proposed changes allow triplexes only on corners and allow townhouses where previously not permitted. Some industry pushback anticipated. Councilmember Johnson asked for equitable lens in bus route planning.

CATS Budget Outlook (Presentation by Brent Cagle, CATS CEO)

• FY25 Proposed Budget: Total increase of ~3% (about $10 million). Operating budget includes $147M for staffing (13% increase) and $104M for operating expenses. Revenue from half-cent sales tax estimated at $165 million (4.3% increase). No fare increases are proposed.
• Accomplishments: Safety/security enhancements (CATS Connect crisis program, ambassadors, de-escalation training), state of good repair (Siemens light rail maintenance contract, 71 buses and 55 STS vehicles on order, $30M zero-emission grant), employee morale and recruitment/retention improvements.
• Capital Projects: Bus and rail state of good repair continued; CTC redevelopment faces new challenges. County has not committed a $20M TIG, and inflation likely increases project cost. The project remains under evaluation. The South End station, Hambright Road park-and-ride, and operator comfort stations are funded. Design work continues on Red Line, Gold Line Phase 3, and Silver Line but no new funding programmed beyond commitments.
• Microtransit: RFP to be issued in 2025; first three zones in Huntersville, Cornelius, Davidson. Councilmember Johnson suggested private-sector partnerships for University Research Park last-mile connections. Councilmember Ajmera and others asked for better bus stop amenities (shelters, seating).
• Equity Concerns: Councilmember Brown read a constituent email noting that 70% of riders are people of color but only 16% of CATS leadership (executive team) are people of color. Cagle acknowledged the importance of diversity and noted bus operations are contracted, but committed to sharing feedback with the contractor.
• MTC Approval Process: CATS budget must be recommended by the MTC on April 24 before inclusion in the manager’s budget (May 6).

Key Outcomes

• No formal votes were taken; all items were for discussion and information.
• The stormwater rate increase (3.7%) will be proposed in the manager’s budget; further analysis on commercial rates is expected.
• Charlotte Water’s proposed increase ($4.37–$4.55/month) and H2O Foundation will be part of the budget debate.
• The A Home for All framework requires additional vetting; committee members have many unresolved questions.
• Community safety recommendations are expected in the May 6 budget presentation; City Manager confirmed an allocation for crime and youth.
• The CTC redevelopment project is under reevaluation due to funding uncertainties and likely cost increases; a rezoning request will come before council soon.
• UDO modifications for N1 place types will continue to be refined with stakeholder input.
• The CATS budget will be presented to the MTC on April 24 for recommendation; council will consider it as part of the full budget in May.