Title
Public Hearing on the Proposed Fiscal Year 2024 Operating Budget and Fiscal Years 2024-2028 Capital Investment Plan
Action
Action:
Conduct a public hearing on the City Manager’s Proposed Fiscal Year 2024 Operating Budget and Fiscal Years 2024 - 2028 Capital Investment Plan.
Body
Committee Chair:
Dimple Ajmera, Budget, Governance and Intergovernmental Committee
Staff Resource(s):
Marcus Jones, City Manager’s Office
Ryan Bergman, Strategy and Budget
Teresa Smith, Finance
Explanation
§ On May 1, 2023, the City Manager presented the Proposed Fiscal Year (FY) 2024 Operating Budget and FY 2024-2028 Capital Investment Plan. The proposed budget represents the city’s proposed operating and capital budgets for the fiscal year which begins July 1, 2023.
§ 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 12, 2023.
§ Charlotte’s Proposed FY 2024 Budget was developed to lead the City of Charlotte toward addressing the most foundational and pressing needs of the city.
Proposed FY 2024 Operating and Capital Budgets’ Summary
§ The City Manager’s Proposed FY 2024 Operating Budget and FY 2024-2028 Capital Investment Plan were developed consistent with the City Council’s strategic priorities. These priorities served as the foundational elements against which all FY 2024 budget decisions were measured.
§ The proposed budget includes a property tax rate of 26.04¢ per $100 of assessed valuation, which is an 8.77¢ decrease from FY 2023.
§ The proposed budget for the city consists of three major components supported by general tax revenues:
- A General Fund budget of $832.5 million for FY 2024, representing a 6.1 percent increase from FY 2023, to support initiatives that will continue to deliver exceptional government services to the community;
- A $209.4 million Municipal Debt Service Fund; and
- A $138.3 million General Capital Investment Plan for FY 2024
Proposed FY 2024 Budget Highlights
§ Balances budget without a property tax increase, no increase for fifth straight year
§ Maintains or enhances core services
§ Maintains operating reserve levels; no use of one-time revenues such as General Fund balance
§ Protects current employees-no layoffs or furloughs
§ Adds 29 apprenticeships
§ Adds a Human Resources position dedicated to workforce development with career coaching
§ Continues flexible work options for feasible positions
§ Adds 25 additional take home cars for veteran police officers
§ Supports internal services by adding a legal support position, four procurement positions, two HVAC technicians, and a financial internal controls position
§ Continues to be a leader in municipal sustainability led by the Strategic Energy Action Plan with:
- Sustainable Infrastructure
§ Purchasing 45 electric vehicles
§ Expanding charging infrastructure
- Exploring new opportunities
§ Adding first net zero carbon police station
§ Adding first electric refuse truck in Solid Waste
§ Adding first electric semi-truck
§ Recommends $4.2 million in ARPA funds toward the HOMES program in partnership with the county to provide assistance that directly reduces the city tax bill by up to 25 percent for eligible applicants who are low- to moderate-income households within the city limits
§ Invests 79.5 million in Fire infrastructure by programming for five stations over five years within the CIP
§ Provides 42 additional fire staff
§ Supports Corridors of Opportunities with a $5 million dollar investment for implementation of playbooks, continued engagement, and partnerships
§ Includes $250,000 to continue partnership with Atrium for Hospital Based Violence Prevention Program
§ Adds two new sites to the Alternatives to Violence, West Boulevard and Nations Ford/Arrowwood areas and one position to monitor programs related to SAFE Charlotte
§ Continues Charlotte Business Inclusion support with $1 million and three new positions to continue implementing programs and increase vendor outreach
§ Programs funding to continue AmpUP and NXTCLT small and minority business assistance programs
§ Supports closing the digital divide and Smart Cities work with two additional staff resources
§ Adds 37 positions to support the Unified Development Ordinance
§ Creates a Special Assistant to the City Manager to work on workforce development initiatives
§ Protects quality of life for residents by adding a four-person Rapid Response code enforcement team, and an additional litter crew from the Center for Employment Opportunities
§ Includes an increase in Solid Waste fees of $0.72 per month, $8.58 annually
§ Supports Animal Care and Control needs with two new positions and an additional $56,000 toward animal food and medical supplies
§ Provides at least level funding for all current Financial Partners
Proposed FY 2024 Employee Compensation and Benefits
§ Annualizes costs for FY 2023 employee salary actions
§ Provides a six percent salary increase for all General Hourly Employees (three percent increases in both July and January)
§ Provides a four percent salary pool for salaried employees
§ Covers the majority of healthcare increases for employees, whose premiums will only go up $3-$5 per week, compared to increase of $20/week per employee for the city.
§ Continues flexible work options for feasible positions
§ Provides at least eight percent increase for all police officers and sergeants
§ Increases starting and top officer pay by 10.5 percent by January
§ Provides a 5.5-8.0 percent increase for all Public Safety Pay Plan firefighters.
§ Provides for an increase to the annual contribution to retiree health savings for sworn positions hired on or after July 1, 2009 by 25 percent to $1,300/year beginning in January
Proposed FY 2024 Nongeneral Departments’ Revenue
§ Charlotte Water: The FY 2024 Water and Sewer Fee for the typical homeowner is proposed to increase by 4.25 percent. The typical homeowner would experience a $3.10 per month increase.
§ Storm Water: The FY 2024 Storm Water Services Fee is proposed to increase by 4.6 percent. The typical homeowner would experience a $0.43 per month increase.
§ Aviation: Select non-regulatory fees were adjusted to increase or decrease based on Aviation’s cost-recovery model.
§ CATS: In FY 2024, CATS’ fares will remain the same as in FY 2023.
Proposed FY 2024 Financial Partners and Outside Agency Funding
§ One new General Fund supported financial partner, Race Matters for Juvenile Justice, is being proposed for funding in FY 2024.
§ General Fund supported financial partners which were funded in FY 2023 are being recommended for the same funding levels in FY 2024, with the exception of the Charlotte Regional Business Alliance which will receive a slight increase due to funding based on local population served.
§ The FY 2024 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 Charlotte Regional Visitors Authority budget of $21,861,227.
§ Crisis Assistance Ministries is recommended for the same funding level in FY 2024 of $425,000.
§ DreamKey Partners, which receives both PAYGO and federal grant funds, is proposed to receive level funding of $1,690,000 for affordable housing.
§ Agencies that receive only Pay-As-You-Go (PAYGO) funding are proposed to maintain their FY 2023 funding levels.
Proposed FY 2024-2028 Capital Investment Plan (CIP)
§ The five-year total Proposed FY 2024-2028 CIP is $6.35 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 $758.5 million (this includes general obligation bonds, other sources, reappropriation of prior authorization, and PAYGO funds).
§ The nongeneral departments’ five-year capital plans total $5.59 billion and are summarized below:
- Aviation totals $2.2 billion, a 17.3 percent increase,
- CATS totals $293 million, a 103.4 percent increase,
- Charlotte Water totals $2.63 billion, a 0.6 percent decrease, and
- Storm Water totals $470 million, a 12.6 percent decrease.
§ The Proposed FY 2024-2028 General CIP includes:
- Continuing a program to construct Fire facilities
- Supporting the Strategic Energy Action Plan
- Maintaining city-owned facilities and the construction of the city’s first carbon zero police station
- Implementing the ADA Transition Plan in priority city-owned facilities
- Continuing funding of the Cross Charlotte Trail
Budget Process
§ The following is the Council-adopted remaining budget meeting schedule:
- May 11 - Budget adjustments,
- May 25 - Budget straw votes, and
- June 12 - 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 2024 Budget Presentation
Proposed FY 2024 Budget in Brief