MECKLENBURG COUNTY, N.C. — A tax hike could be in the future for Mecklenburg County property owners.
That’s if Charlotte-Mecklenburg Schools get its request to put a nearly $3 billion bond referendum on the November ballot.
Before this happens, CMS board members must convince the Mecklenburg County Commission to even consider putting this number forward.
“The public education system ultimately affects us all," Jennifer De La Jara, a CMS school board member, said. "Because it is a pillar of our very democracy and investing in the students is an investment in our future.”
The exact amount CMS is requesting be approved is $2,997,749,160 -- or just under $3 billion -- in general obligation bonds for 30 projects.
At a joint board meeting over the weekend, based on county staff recommendations, the county commission looks like it has an appetite to approve closer to $2.5 billion.
Mecklenburg County would use general obligation bonds, which are government-issued loans, taken out in installments over the years. This bond requires a vote by the community.
Like a personal credit card, the amount governments take out depends on creditworthiness and ability to pay it back.
“I don't want my taxes raised,” Lisa Cline, a new CMS board member, said. “I know you don't want your taxes raised. But I also know that we use the term world class education, and a world class school system. And we may have to pay a little bit more, especially if we want what's best for our children.”
Mecklenburg County is juggling building improvements not only for CMS but courts, the sheriff’s departments, county buildings, county libraries, Central Piedmont Community College, and parks and recreation centers.
County staff presented a scenario allowing the county to pay $1 billion for CMS projects and $1 billion for non-CMS projects and not raise taxes.
If this happens, the current project list CMS has would potentially be cut down by about two-thirds.
“We've already cut 10 projects off to make it more palatable for our county commission and ultimately our public to accept this this tax referendum in November,” De La Jara said. “That cut alone affected about 7,000 students. So if they were to cut it further, we would be looking between five and 10,000 more students who are not going to have that optimal learning environment that we know that they deserve.”
CMS said when it started to identify school needs it identified 125 projects with more than $5.2 billion worth of improvements needed.
That number would have been higher if it included things like inflation, delays, and unexpected costs coming up.
The district then went to 40 projects, but eventually whittled the list down to the current 30 projects worth just under $3 billion. This number includes things like inflation, delays, and unexpected costs arising.
“You think about what people make hourly, and what it costs to get all the goods in to our area,” Cline said. “Where you have to bid, you have to compete, and it's not cheap anymore and we're having to pay people their worth.”
The improvements being floated by CMS would consider increases in capacity, air quality, and even safety.
“Open campuses like Myers Park, that's a thing of the past, we have to have enclosed buildings, we have to have safety features installed to protect our children,” Cline said.
CMS staff said a high school in 2010 cost CMS $52 million to build. They calculated that the same high school would cost almost three times the amount now, costing the district $130 million to build in 2024.
This rising cost is another reason CMS said the investment in schools needs to happen now.
“It’s also a great argument for why we need to invest even more now and not put it off for years to come because of course the costs will continue to rise,” De La Jara said.
But county staff were clear investing almost $3 billion into CMS building infrastructure would cost taxpayers for years.
“There needs to be an acknowledgement and recognition that it's not just a tax increase today. It's tax increases in the future to be able to fund these projects as they continue,” David Boyd, the county’s chief financial officer, said.
If a $2.5 billion bond referendum was put forward this would only fund about two-thirds of the 30 projects listed.
According to Boyd, based on a median home value of $384,000 property taxes would go up by $38 each year between 2025 and 2027. Then it would go up by $77 in 2028 and $115 per year between 2029 and 2031.
These tax increases don’t consider other possible tax increases by the city or an increase in the worth of your home costing you more.
“There is a rightful concern that our community's most vulnerable will be hit with a tax increase that they may not be able to bear, which is why it's also incumbent upon the county to look at expanding their HOMES program,” De La Jara said.
The HOMES program gives grants to qualifying residential homeowners. Grant funds are allocated to Mecklenburg County Tax Collector and will reduce the total amount of taxes due for qualifying homeowners. The goal of the program is to help homeowners with low to moderate incomes keep their homes by reducing the financial burden resulting from a steep rise in real estate prices.
“I think there's some creative ways for us to look at this planning now for five years that we can get to that 2.9 billion,” De La Jara said.
County staff ultimately recommended commissioners not borrow more than $2.5 billion for CMS projects and $750 million for other projects.
Contact Shamarria Morrison at smorrison@wcnc.com and follow her on Facebook, Twitter and Instagram.