June 7, 2005
Charlotte, NC - Mecklenburg County residents will be expected to pay more in property taxes to maintain and increase services. This is the result of the Mecklenburg Board of County Commissioners approving a $1.23 billion dollar budget for next year (FY2005 - 2006), requiring $877.9 million in local tax dollars. The Board has allocated 90 percent of these local funds to its top three priority levels. Funding these services requires a property tax rate of 83.68 cents per $100 of valuation, 8.01 cents more than the current rate of 75.67 cents. This is a 10.6 percent increase in the property tax rate.
Owners of property with a tax value of $175,000 will pay $140 more on their annual County tax bill, which will total $1,464. This does not include property taxes levied by Mecklenburg County municipalities.
The additional taxes will be used to provide more funding to operate Charlotte-Mecklenburg Schools, pay additional debt and interest on the cost to build new schools, parks, libraries, the courthouse and other public facilities, and to begin building a construction reserve to avoid future interest costs.
Charlotte-Mecklenburg Schools will receive $287.8 million to supplement state funding for operations. This is a $26.3 million increase from the County's current funding. The Board also will provide CMS with $3.6 million to continue funding the High School Challenge, an initiative targeting three of the lowest performing high schools. CMS also will receive $88 million to pay for new and renovated schools, an $11.9 million increase. This level of funding increases the County's cost per CMS student from $2,098 to $3,076 for both operating and capital.
The Board also increased funding for Central Piedmont Community College by $4.5 million, with $2.6 million of this increase going to operating costs and $1.9 million more for debt service. As a result, the Board increased total education funding by $40.3 million, a 10.8 percent increase. Education costs now will comprise 47.1 percent of the County's local tax funding.
The Board also is allocating $22.2 million to create a pay-as-you-go reserve fund. This is a new strategy to control the County's debt costs. The "Paygo" fund will pay for the construction and renovation of some County facilities without borrowing money, thereby eliminating millions of dollars in interest costs. In FY2006, the County's total debt service accounts for $173.5 million in County costs, an increase of $25.2 million from last year.
Other increases in taxes and services include:
- $4.4 million for first phase in moving employee pay to market average
- $4.1 million to replace aging vehicles
- $4.1 million to repair County buildings
- $3.8 million (2 percent increase to payroll) for pay-for-performance increases
- $3.0 million for libraries, including cost to open and operate ImaginOn
- $1.3 million for first-year funding of the Brookwood economic development project
- $1.1 million increase in Medicaid expenses
- $1.0 million for parks and greenway maintenance
- $614,700 for 10 more school health nurses and 1 supervisor
- $500,000 more for various outside agencies
- $500,000 for air quality initiatives
- $186,395 to expand in-home support for senior citizens
- $161,200 for more staff to provide HIV case management
- $126,683 for substance abuse services for homeless people
Residents in unincorporated Mecklenburg County will pay a tax rate of 17.68 cents for police service, an increase of 1.42 cents. This will be added to the 83.68 cents for a total tax rate of $1.0136 dollars per $100 valuation. Municipal residents pay their cost of police services as part of their city or town property taxes.
For more details on the approved budget and to use the My County Budget tool to calculate your new County taxes, go to