Title
Resolution in Support of Legislation Authorizing a Sales Tax Referendum
Action
Action:
Adopt a resolution to support the coalition of local jurisdictions in Mecklenburg County to seek authorization from the North Carolina General Assembly authorizing the voters of Mecklenburg County to determine by referendum whether they will approve an additional sales tax for further investment in roadway and public transportation systems.
Body
Staff Resource(s):
Liz Babson, City Manager’s Office
Explanation
§ The City of Charlotte desires that the North Carolina General Assembly pass legislation authorizing the voters of Mecklenburg County to decide by referendum whether they will approve an additional one cent sales tax for investment in roadway and public transportation systems.
§ This proposed sales tax increase would also allow the region to leverage substantial federal grant funding that is available for investment in transportation network infrastructure, which requires a percentage match of local funding to utilize.
Background
§ The City of Charlotte is a member of the Metropolitan Transit Commission established in 1999 between the City of Charlotte and six surrounding towns and is supportive of providing a diverse roadway infrastructure and public transportation options to its residents.
§ Mecklenburg County is a regional economic engine with over 1.2 M residents and one of the fastest-growing metro areas in the country, attracting new businesses, jobs, tourism, and people every day.
§ Regional growth creates regional transportation needs that include managing the inevitable increase in vehicle trips, maintaining healthy air quality, reducing emissions and congestion.
§ In 2021, following the Charlotte Moves Task Force which recommended a multi-modal one cent for mobility, City Council directed the City Manager to develop a funding, financing and legislative strategy to move forward a one cent sales tax.
§ The City of Charlotte City has adopted the Strategic Mobility Plan (2022), and has identified strategic investment areas for multi-modal mobility improvements (2023-2024) and has reaffirmed Mobility as a Council priority in annual strategy sessions.
§ On August 9, 2024, the Managers of Mecklenburg County, the City of Charlotte, and a majority of the six towns included within the County concluded meetings leading to the preparation of draft legislation enabling a countywide referendum on a one cent local sales tax to fund mobility initiatives countywide, and the ability to establish a regional transit Authority.
§ Elected officials for each jurisdiction are considering resolutions supporting the advancement of the draft legislation.
§ If approved, the request will be formally submitted to the North Carolina General Assembly where local government, business, and community leaders hope to gain adoption of enabling legislation to allow the voters of Mecklenburg County to determine their transportation future by making a choice for increased regional transportation infrastructure investments for both roads and transit.
§ If the legislation is adopted by the NCGA, Mecklenburg County will have the authority to put the referendum on the ballot.
§ Prior to a referendum, the MTC will lead a process to update the Transit System Plan that will include engagement with the broader community about expansion of our public transit network and matching projects to available resources that support the continued growth our region is experiencing.
§ At the same time, City Council will continue to define a program of prioritized transportation projects within Strategic Investment Areas to be funded by the sales tax.
§ City Council received copy of the draft legislation on August 9, a Transportation and Development Committee Presentation on August 13 and Action Review presentation on August 26.
§ The core elements of the draft legislation include:
§ 100 million+ annually allocated to the City of Charlotte for roadway funding
§ More than doubles our investment in transit, and increases the bus program by 50%
§ Establishes a Transit Authority governance structure
§ Prioritizes the Red Line and ensures the City of Charlotte will be reimbursed for the purchase of the O-Line.
§ The resolution is expected to be voted on all by all jurisdictions in September.
Attachments
Attachment(s)
Resolution
Draft Legislation
Summary of Draft Legislation