Title
Public Hearing on the Proposed Fiscal Year 2027 Operating Budget and Fiscal Years 2027-2031 Capital Investment Plan
Action
Action:
Conduct a public hearing on the City Manager’s Proposed Fiscal Year 2027 Operating Budget and Fiscal Years 2027-2031 Capital Investment Plan.
Body
Committee Chair:
Malcolm Graham, Budget, Governance, and Intergovernmental Committee
Staff Resource(s):
Marcus Jones, City Manager
Marie Harris, Strategy and Budget
Matthew Hastedt, Finance
Explanation
§ On May 4, 2026, the City Manager presented the Proposed Fiscal Year (FY) 2027 Operating Budget and FY 2027-2031 Capital Investment Plan. The proposed budget represents the city’s proposed operating and capital budgets for the fiscal year which begins July 1, 2026.
§ State law requires the city hold a public hearing following the presentation of the Manager’s Proposed Budget and prior to the City Council adoption of the budget, currently scheduled for June 8, 2026.
§ Charlotte’s Proposed FY 2027 Budget was developed to lead the City of Charlotte toward addressing the most foundational and pressing needs of the city.
Proposed FY 2027 Operating and Capital Budgets Summary
§ The City Manager’s Proposed FY 2027 Operating Budget and FY 2027-2031 Capital Investment Plan were developed consistent with the City Council’s strategic priorities. These priorities served as the foundational elements against which all FY 2027 budget decisions were measured.
§ The proposed budget includes a property tax rate of 29.30¢ per $100 of assessed valuation, a 1.89¢ increase from FY 2026.
§ The proposed budget for the city consists of three major components supported by general tax revenues:
- A General Fund budget of $1.04 billion for FY 2027, representing a 10.5 percent increase from FY 2026, to support initiatives that will continue to deliver exceptional government services to the community;
- A $261.7 million Municipal Debt Service Fund; and
- A $520.1 million General Capital Investment Plan for FY 2027.
Proposed FY 2027 Budget Highlights
§ Structurally balanced budget with a two-year lens that:
- Preserves core services,
- Advances Public Safety,
- Invests in transformational Mobility+, and
- Maintains reserves.
§ Proposed 1.89¢ property tax increase dedicated to enhancing Public Safety.
§ Continues Charlotte’s achievement of affordability for government services, ranking lowest among North Carolina’s largest cities with a population of 250,000 or above.
§ Promotes recruitment and retention of Police and Fire employees in the Public Safety Pay plan with across the board pay increases, that are above typical pay plan years.
§ Includes $12.4 million in funding for police and fire vehicle replacements.
§ Adds an additional 35 cars for the police take home vehicle program.
§ Includes $2.3 million to add Engine 46 at Miranda Road Infill Station.
§ Adds funding for Fire to include Field Technicians for the three Operations Division Chiefs ($366,225) and two civilian support positions to improve fire training and response times ($225,298).
§ Reserves funding for a commercial burn building for fire training and moves forward on a schedule to construct new or replacement Fire facilities every two years.
§ Provides funding for a new helicopter hangar for Police.
§ Invests in small businesses and neighborhoods with $600,000 for Business District Organizations and Main Street programs, $500,000 for Neighbors Building Neighborhoods, $500,000 for the Business Matching Grant program to revitalize business corridors.
§ Elevates engagement by creating a new partnership with Foundation for the Carolinas to enhance engagement, adding a new International Relations Manager position, and strengthening the Office of Constituent Services team to advance community engagement with seven positions (six support specialists and one communications specialist).
§ Invests in youth with $500,000 to support youth internships at the city in FY 2027 and a $1.5 million commitment to the expanded Road to Hire program.
§ A new sales tax in FY 2027, which is projected to generate $100 million in FY 2027 to be used for mobility projects.
§ Matches the historic 2024 Transportation and Neighborhoods Bonds at $300 million.
§ Matches the historic 2024 Housing Bond plus a one-time bump of $25 million to support anti-displacement efforts.
Proposed FY 2027 Employee Compensation and Benefits
§ Increases the minimum pay to $25 per hour or $52,000 per year for non-temporary, full-time general city employees.
§ Funds a four percent compensation increase for general hourly employees (1.5 percent in July and a 2.5 percent merit pool in November).
§ Provides a four percent merit pool for salaried employees.
§ Provides a 10 percent pay increase for eligible sworn Police personnel in the Public Safety Pay Plan and a seven percent pay increase for eligible sworn Fire personnel in the Public Safety Pay Plan.
§ Provides for increases in the city’s contribution to the Local Government Employees’ Retirement System and Charlotte Firefighters’ Retirement System in order to responsibly fund the city’s pension liabilities.
§ Covers the majority of healthcare increases for employees and increases the city’s employer contribution to city-provided medical, dental, and other employee benefits by 12.5 percent.
§ Continues flexible work options for feasible positions.
§ Continues pay incentives including:
- Second and third shift differential pay,
- Language incentives,
- CDL incentive for General Fund employees, and
- Military and education incentives for Police and Fire personnel in the Public Safety Pay Plan with a new option to stack associate’s degree and military incentives.
§ Continues employee programs including:
- Pre-paid tuition assistance,
- Career coaching,
- Rental and down payment assistance, and
- Financial counseling and assistance.
Proposed FY 2027 Nongeneral Departments’ Revenue
§ Charlotte Water: The FY 2027 Water and Sewer Fee for the typical homeowner is proposed to increase by 5.74 percent. The typical homeowner would experience a $4.41 per month increase.
§ Storm Water: The FY 2027 Storm Water Services Fee is proposed to increase by 4.44 percent. The typical homeowner would experience a $0.48 per month increase.
§ Aviation: Select non-regulatory fees were adjusted based on Aviation’s cost-recovery model.
§ CATS: In FY 2027, CATS’ fares will remain the same as in FY 2026.
Proposed FY 2027 Financial Partners and Outside Agency Funding
§ Funds seven General Fund Discretionary Organizations with $891,012 and funds Crisis Assistance Ministry with an additional $425,000 from Innovative Housing Pay-As-You-Go (PAYGO) for a total of $515,000 for Crisis Assistance Ministry.
§ The FY 2027 recommended budgets for Charlotte Center City Partners, University City Partners, and SouthPark Community Partners (Municipal Service Districts #1-6) support economic, cultural, and social development within designated districts. Their allocations are based on the valuation of properties in their respective districts.
- The Proposed FY 2027 tax rate in Municipal Service District 5 (University City) includes a 1.18¢ increase from the FY 2026 Budget, for a total rate of 3.80¢ per $100 assessed valuation.
§ The Charlotte Regional Visitors Authority’s budget reflects an increase of 2.5 percent over FY 2026.
Proposed FY 2027-2031 Capital Investment Plan (CIP)
§ The five-year total Proposed FY 2027-2031 CIP is $7.93 billion (this includes the total General CIP, as well as the five-year capital plan totals for nongeneral departments: Aviation, CATS, Charlotte Water, and Storm Water).
§ The five-year General CIP totals $1.72 billion (this includes general obligation bonds, other sources, reappropriation of prior authorization, and PAYGO funds).
§ The nongeneral departments’ five-year capital plans total $6.22 billion and are summarized below:
- Aviation totals $1.98 billion,
- CATS totals $1.24 billion,
- Charlotte Water totals $2.57 billion, and
- Storm Water totals $423 million.
§ The Proposed FY 2027-2031 General CIP includes:
- Funding reserved for a commercial burn building for fire training;
- Funding reserved for a new or replacement Fire facility planned for every two years;
- $10 million in FY 2027 to construct a new helicopter hangar for Police, with another $10 million planned in FY 2028;
- Funding to advance and complete the Animal Care and Control Satellite Adoption Center project with $12 million in FY 2027 and $10.5 million planned in FY 2028;
- A new Mobility PAYGO Program to provide a sustained source of cash funding for smaller-scale transportation programs, including $7 million to support the acceleration of early-stage future transportation projects;
- A new steady state Housing Bond of $100 million plus a one-time increase of $25 million to support anti-displacement, making the proposed 2026 Housing Bond the largest in city history at $125 million;
- $300 million total of 2026 Transportation and Neighborhood Bonds, matching the historic 2024 bond levels, which include:
§ $60 million for Strategic Investment Areas (SIAs), which will be expanded to the Corridors of Opportunity;
§ $22 million for Vision Zero projects;
§ $50 million for sidewalks;
§ $10 million for bicycle facilities;
§ $2 million for a new Orphan Roads program;
§ $100 million to deliver seven mobility projects by 2030 (Big Moves), which include:
- Eastway/Shamrock Intersection,
- Bryan Farms Road Phase 2,
- Robinson Church Road,
- Ashley/Freedom/Tuckaseegee Intersection,
- Brown-Grier Road,
- DeArmon Complete Street, and
- Shamrock Drive Complete Street; and
- $5.95 million for Mobility+ programming to proactively build workforce and small business capacity alongside increased capital transportation investments.
Budget Process
§ The following is the Council-adopted remaining budget meeting schedule:
- May 18 Budget adjustments,
- June 1 Budget straw votes, and
- June 8 Budget adoption.
§ State law requires local governments to adopt a budget by July 1 of each year.
§ A complete copy of the proposed budget is available online at: https://charlottenc.gov/budget/Pages/default.aspx
Attachments
Attachment(s)
Proposed FY 2027 Budget Presentation