Charlotte City Manager makes additional budget recommendations

The City manager has made additional budget recommendations where some could see a decrease in their total bill.

City manager, Ron Carlee recommends the elimination of the $24 annual multi-family solid waste fee allowing most condominiums and apartments to see a reduction in their total bill.

The City manager presented the original budget recommendations Monday night, May 4, with his plan to close a $22 million budget gap including a property tax increase.

"I believe we have a good and fair budget recommendation, one that is strategic, sustainable and creative," said Ron Carlee. "It is a budget that meets our immediate financial challenge and positions the city to move forward in a strong economy."

According to the City Manager, the recommended General Fund budget is balanced with expense and service reductions, compensation increases, a modest property tax rate adjustment and slight fee increases. The following listed below is General Fund adjustments to close the $21.7 million gap:

  • $3.1 million city service reduction
  • $4.5 million expense reduction
  • $3.2 million solid waste fee ($47) conversion to property tax increase plus additional property tax rate adjustment to fund higher costs for Solid Waste Services operations
  • $3.7 million revenue neutral tax rate due to the 2011 property assessment revaluation
  • $1.4 million increase in user fee cost recovery
  • $3.5 million general fund expenditure shift to other funding sources
  • 0.99 cents is added to convert the $47 per year single-family residential Solid Waste fee to a property tax equivalent rate that will generate the same level of revenue.
  • 0.36 cents is added to cover increased costs associated with residential recycling, multi-family refuse collection and increased maintenance for Solid Waste Services collection trucks.
  • 0.41 cents is added as the adjusted "revenue neutral" tax rate that would have been included in the FY2012 budget had the revaluation been correct.

The City Manager says eliminating the solid waste fee and replacing it with a tax increase will allow businesses to contribute more.

"Because the fee is only applied to single family homes and the property tax rate is spread across the entire tax base."

For homes below $267,000 the adjusted tax rate results is a decrease to the property tax bill. 

Storm Water Services will stay the same for 61% of customers. 29% of customers will increase $3.91 per month and 10% will increase $11.78 per month. Charlotte Water will increase $1.55 per month for the typical user, according to the City Manager.

A city council budget workshop is planned for Wednesday and the city hopes to adopt the budget on June 8.

Click here for more budget information.