On April 5, 2011, during the Board’s regular meeting, Finance Director Dena Diorio and Budget and Management Director Hyong Yi presented the news. You can view Diorio’s presentation online, along with Yi’s PowerPoint slides of how department’s faced with budget cuts have found cost saving ways to do business.
What’s Next? At its afternoon Budget and Public Policy Workshop on April 12, the BOCC will hear about a revenue-neutral tax rate for Mecklenburg County. The state of North Carolina requires that a taxing unit (e.g. city or county) present a revenue-neutral tax rate each time the County revalues property.
G.S. 159-11(e) defines the revenue-neutral rate as the rate that is estimated to produce revenue for the next fiscal year equal to the revenue that would have been produced for the next fiscal year by the current tax rate if no revaluation had occurred.
G.S. 159-11(e) also instructs that the revenue-neutral rate is calculated as follows.
• Determine a rate that would produce revenues equal to those produced for the current fiscal year.
• Increase the rate by a growth factor equal to the average annual percentage increase in the tax base due to improvements since the last general revaluation.
• Adjust the rate to account for any annexation, deannexation, merger, or similar event.
Read more in the Local Finance Bulletin from the UNC School of Government.