Charlotte arts funding change added to proposed budget. CMPD, housing get boosts too

Charlotte leaders took a major step toward severing ties with the Arts & Science Council on Monday, with the city’s proposed budget for fiscal year 2022 instead earmarking millions of dollars to the Foundation For the Carolinas to dole out grants.

The $4 million from the city’s general fund — plus $2 million from the federal American Rescue Plan — is a temporary approach.

The City Council is contemplating a longer-term strategy to support arts groups across Charlotte, all while bucking a decades-long model of relying on the ASC as a pass-through funding agency. Mecklenburg County is not expected to follow suit, with commissioners last week voicing strong support for the ASC and its recent focus on racial equity.

The private sector would match the city’s arts and culture contribution, for a joint total of $36 million over three years, said City Manager Marcus Jones. Five companies already have pledged a combined $7.2 million, the foundation said Monday.

In the new fiscal year, Jones said, ASC would receive $800,000.

No property tax hike for Charlotte

Despite the controversy over the arts plan, it’s all still a small sliver of the $2.7-billion budget Jones outlined on Monday to City Council members, who will vote on adopting it in June. That’s a roughly 6% increase, and the city’s general fund will grow by 4.4%, to $750.7 million.

There’s no property tax increase under Jones’ proposal, and the city would not need to dip into any rainy day reserve funds.

Compared to last year’s budget, Jones likened this iteration to “Resilience and Recovery: Volume 2.”

Mayor Vi Lyles said the budget is about “building community and making a difference in the lives of our residents.” She said more discussion is needed about the ASC.

Major funding allocations will help the city reach its sustainability goals, build new fire stations and complete the Cross Charlotte Trail, a trail and greenway spanning more than 30 miles.

The budget also doesn’t incorporate any new federal COVID-19 relief money, even though the City Council just received its first tranche of about $74.5 million from the American Rescue Plan.

Jones said he is collaborating with Mecklenburg County and Charlotte-Mecklenburg Schools leaders on the best way to deploy its total allotment of $682 million. County Manager Dena Dioro will present her proposed budget Thursday morning.

Here’s a closer look at the city’s incoming budget.

Fee increases

▪ Households can expect their Charlotte Water fee to increase by $2.33 per month.

▪ The Storm Water Services fee will increase by 29 cents per month for households.

▪ The property tax will stay at 34.81 cents for $100 of assessed value, or about $750 for the average Charlotte household.

▪ There’s no fare increase for the Charlotte Area Transit System.

CMPD

The Charlotte-Mecklenburg Police Department could get a 3.7% budget increase, under Jones’ recommendation. That’s primarily targeted for police officer salary increases and benefits, though Jones said the city is also committed to its work of reimagining CMPD and curbing violent crime through allocating $3.2 million for community-oriented programs.

With a nearly $740,00 funding increase, the number of CMPD Community Policing Crisis Response Teams — designed to handle mental and behavioral health emergencies — could double, Jones said.

The city will also allocate $1.2 million to launch a mental health civilian response initiative, similar to the lauded CAHOOTS intervention program in Eugene, Oregon, which dispatches crisis workers instead of traditional law enforcement officers.

During last year’s budget discussion, City Council member Braxton Winston drew sharp scrutiny of CMPD’s budget, comprising roughly 40% of Charlotte’s general fund. It came in the aftermath of a startling George Floyd protest in uptown, where CMPD cornered peaceful demonstrators on Fourth Street.

Winston successfully led a community push barring police officials from buying chemical agents.

Still, in this year’s proposed budget, CMPD would get $300.9 million — or 40.1% of the city’s general fund.

City employees

There are no planned layoffs, and city employees will get a 3% salary increase.

Charlotte is also raising the salaries of the city’s lowest-paid employees from $33,280 to $38,090, which is 60% of Charlotte’s median household income. The change impacts nearly 150 people. The goal, Jones said, is to ensure people in core services like the Charlotte Department of Transportation and Charlotte Water can afford to live in the city.

Police and firefighter will also get raises, finishing off a three-year program to reach top pay, Jones said.

Upcoming bonds

Jones recommended investing $50 million for sidewalks, with $10 million earmarked for suburban areas in a 2022 bond.

The city would issue another $50-million bond for affordable housing, plus $10 million to ease traffic congestion in areas including south Charlotte, Steele Creek and University City.

Opportunity corridors

A hallmark of last year’s budget was the city’s $24.5-million investment in so-called “opportunity corridors,” including economic developments in neighborhoods along Beatties Ford Road and West Boulevard.

Planning is underway to start progress on the city’s remaining two corridors, along North Tryon/Graham streets and Freedom Drive/Wilkinson Boulevard, Jones said.

In this year’s budget, Jones said, the city will invest $14 million in opportunity corridors. That involves $7 million for housing and “neighborhood stabilization” efforts, plus $7 million jobs and economic development. The city will unveil new “aging in place” pilot programs this year for senior citizens, too, Jones said.

“We believe there’s an opportunity to fill good-paying jobs throughout the city and throughout the region,” Jones said.

Next steps

The City Council business meeting on May 10 will feature a budget public hearing.

You can sign up to speak online at Charlottenc.gov/CityClerk/Pages/Speak.aspx. Reach the city clerk at 704-336-2248 or cityclerk@charlottenc.gov.

Council members will cast straw votes on May 26, before officially adopting the budget on June 14.

The proposed budget book can be accessed at Charlottenc.gov/budget/Pages/default.aspx.