CHARLOTTE, N.C. — Charlotte leaders are considering raising property taxes for the first time in five years to help pay for city services.
City Manager Marcus Jones told the City Council on Monday that the Queen City's revenue currently can’t cover its growing needs. That's why he's calling for historic investments in things like affordable housing and police salaries.
To help pay for it, Jones recommends a 1.5-cent property tax increase and upping the cost of some city services.
"We haven’t raised taxes — property taxes — in the last five years," Jones said. He added that Charlotte has a much lower property tax rate than its North Carolina neighbors.
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Raleigh has raised property taxes three times in the last five years, according to Jones. He also claimed that Durham and Winston-Salem have raised their property tax rates four times in recent years. The increase proposed by Jones would cost the typical Charlotte homeowner around $54 more per year.
Councilman Ed Driggs told WCNC Charlotte he does not support the tax hike, arguing there are other ways to raise money for the city. Driggs expressed uncertainty that the proposed tax hike would cover the recommended investments.
Jones wants to increase the biannual bonds that cover housing, transportation and neighborhood projects from $210 million to $400 million.
Some of his recommendations for the upcoming budget include bumping the minimum pay for city employees to $23 an hour. He also wants to give hourly employees a 5% raise and salary employees a 4% merit pool increase.
Jones said fiscal year 2025 could be the biggest pay increase for CMPD in 20 years. He recommends upping the starting pay to $64,485 for police officers with a four-year degree. He also recommends doubling the Housing Trust Fund investment to $100 million.
"Let's see what we can do for this upcoming bond to show the community that we’re ready to do more," Jones said.
Driggs says the idea of bigger bonds makes him uneasy, saying he thinks it's just "too big."
Councilwoman Victoria Watlington told WCNC Charlotte that the city needs more money for emergency services and infrastructure improvements. However, she wants to see more help from regional partners.
"When we think about transit and all the needs of a growing city, at the end of the day it really means our residents are going to have to bear that burden," Watlington said.
Jones’ recommendations also include increasing stormwater, solid waste, and water service fees. He said the typical homeowner would pay about $5.60 more a month.
Elvis Rattary is among the Charlotte homeowners who would be okay with the increase but worries about being priced out in the future.
"I think, eventually, our lower-income people are going to get kind of taxed out and it’s going to gentrify for everybody else with the wealth to come and take it over for basically pennies on the dollar because we can’t even pay our taxes," Rattary said. "If we can’t pay our mortgage, we can’t pay our taxes, either way, we lose our homes.”
Marjorie Parker leads the Hidden Valley Community Association in northeast Charlotte. While she's not opposed to this increase, she's hoping to see the General Assembly step in to cap increases for seniors who've lived in the city for decades and may not qualify for help.
"The city has to work on its infrastructure and so you may get a minimal tax increase, but that’s not my concern," Parker said. "My concern is being priced out of my home.”
Charlene Henderson grew up in Charlotte and used to own a home in the city. She's renting now, but is hoping the city will use the additional funds, if approved, to help create more opportunities for homeownership.
"My goal was to always be a homeowner," Henderson said. "However, when you look at the market now and the market then there’s a clear difference, a huge difference. For me, I want to own a home, but I cannot afford it at this moment.”
Charlotte City Council will hold a public hearing on the budget on May 13. City leaders will then work on adjustments to the recommendations before the June 10 final budget vote.
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