Charlotte City Council FY2026 Budget Presentation - May 5, 2025
Charlotte City Council FY2026 Budget Presentation - May 5, 2025
The Charlotte City Council convened on May 5, 2025, at 10:15 AM for a regularly scheduled meeting to receive the City Manager's presentation of the proposed FY2026 budget. The meeting began with introductions of council members and city staff, followed by the budget presentation by City Manager Marcus Jones. No public comments were heard, and the meeting concluded with a motion to enter closed session.
Discussion Items
- FY2026 Budget Presentation: City Manager Marcus Jones presented a structurally balanced $3.6 billion total budget ($943 million General Fund), with no property tax increase planned for FY2026. The budget includes a 5.2% growth ($46.7 million additional funding) and maintains core services without layoffs. Key investments include $6.5 million for public safety radios (over five years), $17 million for workforce and business development, and the creation of an Office of Youth Opportunities.
- Employee Compensation: All employees receive at least a 3% increase: 4% for hourly employees (1.5% COLA + 2.5% merit), 3% merit pool for general employees, and full step plan funding for police and fire. Minimum pay rises to $24/hour ($49,920 annually). Other benefits include prepaid tuition, an employee rental assistance program, and a low-interest loan program for hardships.
- Fee Adjustments: Solid waste fee increases by $10.03/year (monthly $1.35) to reach 40% cost recovery; water increases $5.47/month; stormwater increases $0.67/month. Total monthly increase for residential customers is $7.49.
- Revenue Challenges: Sales tax growth is only 0.2% ($6.5 million shortfall), offset by cutting 21 vacant positions and $7.4 million in other reductions. The budget also assumes $13.9 million in FY2024 surplus and $6.3 million in ARPA interest.
- Transformational Mobility Plan: The proposed one-cent sales tax increase (if approved) would generate $5.7 billion over 30 years for mobility projects, leveraging federal matches up to $25 billion total. The budget includes $3 million to prepare small businesses and $3.5 million for workforce development for these projects.
- Council Member Comments: Council members praised the budget presentation and highlighted specific aspects: Councilmember Johnson noted the CPCC partnership and asked about a list of all fund totals; Councilmember Molina emphasized workforce development and employee programs; Councilmember Brown thanked the manager and stressed community input; Councilmember Graham highlighted aviation, CATS, and water enterprise funds and the $50,000 minimum salary; Councilmember Driggs noted the three-year horizon and distinguished budget award.
Key Outcomes
- No Vote on Budget: The budget was presented for discussion only. The adoption timeline is: May 12 – public hearing, May 19 – council budget adjustments, May 29 – straw votes (Thursday before Memorial Day, noted as a potential scheduling issue), and June 9 – final budget adoption.
- Animal Care and Control Move: City Manager announced a recommendation to move Animal Care and Control from CMPD to General Services for efficiencies, a move Councilmember Ashmera welcomed.
- Closed Session: A motion was made and seconded to enter closed session under NCGS 143-318.11(a)(3) to consult with the city attorney. The council approved the motion with a vote; no tally recorded in transcript. The meeting was expected to reconvene after the closed session to adjourn.
Meeting Transcript
So what I'd like to say is that you know this is our um introductory meeting. So we have lots of time and and have get allocated a number of times when we'll have budget public hearing on the 12th, and we'll have adjustments and comments from the council members, and we would need to have those hopefully by the 19th, so that everyone can be ready and prepared for the next year's budget. So with that, I'm going to um turn it over to the manager, unless there's something else that the council has had I'm sorry. We're going to do introductions, thank you. All right, let's start with our clerk. Billy Tons, Deputy City Clerk. Anthony Fox Interim City Attorney. Renee Johnson, and I have the honor of representing District Four. Good evening, Marjorie Molina, District Five. Good evening, Dimple Ashmera. Edlarge. Good evening, Dante Anderson, Mayor Pro Tem, District 1. Good evening, Vi Lauz Mayor. Good evening, Malcolm Graham, District 2. Ed Dregs, District 7. All right. If you would introduce yourself. Of course. It is Tijuana Brown. Charlotte City Council District 3. All right. All right. Julia Martin City Manager's Office. Okay. Any other things that we need to do before we dive in. Hearing none. Mr. Jones, you have the floor. Thank you. Thank you, Mayor and members of council. Uh Julia and I were trying to count and we're counting on our fingers, and I guess that's not the best way to start a budget presentation. But we think this is the uh ninth uh budget presentation that I provided to the city council. So I I'm pleased to begin the presentation. Um, and I really want to start with FY 2024. We talked a bit about being at an inflection point uh in this community in trying to navigate how we could go about providing excellent services. Um, and to make sure that there's a cost effective to uh residents. So in FY 2024, we talked a bit about um whether we would be in the decline, be on the steady trajectory, or even um it advance it a bit. And so by the time we got to FY uh 25, uh you did approve a 1.37 property tax increase with about 0.82 going to operating primarily public safety, another 0.24 going to capital, really housing and mobility, and lastly, 0.31 going into arts and culture. I will tell you that in uh the current budget, what that allowed us to do, especially around the capital piece, is to have a storic investments in uh corridors and affordable housing as well as in transportation. So I'll start with the corridors, and I don't think the story has been told enough that it's really uh a five-year journey starting off with some investments in the corridors. I believe it was 14.5 million in the CIP and 10 million dollars in paygo uh back in 2020. And I just want to say that those investments over the years at 95.6 million has really pulled in for every dollar that the city has invested, 1.71 dollars in the private sector and federal grants. So really as we start to look at this not as 95.6 million dollars of city investment, but 260 million in community investment over the last five years. I would be remiss if uh I didn't bring up with Angela. Charles says to me over and over again, she says, Marcus, don't leave out what's happening with infrastructure. So you take that same period of time, Charlotte Water has invested 396 million in the corridors and stormwater, another 154 million. So $810 million invested in our corridors for opportunity. It was never the thought process that the city would do this alone. And the great news is that folks have come along with us. Also, with that project tax increase last year, we were able to do more in terms of the bond with the housing trust fund.
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