1 Developing Alternative Sources of Revenue Ruffin Hall Budget
Director City of Charlotte Hyong Yi Director of Mgmt and Budget
Mecklenburg County Or Five Reasons Why Mecklenburg County Is Better
Than The City of Charlotte Or Five Reasons Why Charlotte Is Better
Than Mecklenburg County NCLGBA Presentation December 8, 2005
Slide 2
2 Its Charlotte- Mecklenburg, not the other way around County
is bigger. And bigger is better. Reason 1 Why Were Better
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3 Outline Growth and development trends Recent budget
deliberations Current revenue sources Alternative revenues
Decision-making process Next Steps
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4 Charlotte-Mecklenburg Population Growth
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5 City of Charlotte Population Growth
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6 City of Charlotte Residential Building Permits Issued
1999-2004
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7 Social Services Demand
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8 CMS Student Enrollment Growth
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9 The Budgetary Context Service demands are increasing Cost of
service is increasing Revenues (property tax base) are not keeping
up to pay for them Ex cost to educate a student vs. a family of
four that moves into the county True for City, County, and most
everyone else in the State of North Carolina
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10 City of Charlotte Budgetary Adjustments Implement 4 of 6
budget studies Recommended and approved FY2006: Multi-family
Garbage Collection reduce service State Street Cleaning and Debris
Pick Up - eliminate User Fees Policy increase 60% to 100% Business
Privilege License raise max cap from $2,000 to $10,000 Not
recommended but considered: Reduce Bulky Item Collection Service
Implement Solid Waste Collection Fee Butno property tax
increase
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11 City of Charlotte Services Assessment Ranked 39 General Fund
services Focused on services scoring below 200 Examples of services
cut: City communications Employee training Landscaping maintenance
Street sweeping and litter pick up on state roads
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12 Mecklenburg County Recent Budget Deliberations Raised County
fees past few years Park and Recreation Landfill Prioritized all
services (1-7) and fund based on level Raised taxes 10 (2+8) cents
past 2 years
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13 Reason 2 Why Were Better County raises taxes like its going
out of style City lowers taxes
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14 Current Sources of Revenue
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15 What Options Do We Have? Raise revenues Property tax rate
Other alternative sources (focus today) Reduce Costs
Efficiencies/Productivity gains Reduce service levels Eliminate
services A Mix of the Two
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16 Charlotte and Mecklenburg Recognize need for other revenues
County resolution City resolution Two strategies Get state to
authorize a menu of local taxes through pressure from local
jurisdictions Study alternative revenue sources jointly
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17 Exercise
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18 Reason 3 Why Were Better Biennial budgeting whats that all
about? After deliberation, 8 cent tax increase and we finished
three weeks early The City does 2 years of budgeting in the same
time the County does one After deliberation, no tax increase and a
week late
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19 Process for Decision-Making Options Blue ribbon commission
Joint Task Force of Elected Officials Third Party administered
study Consultants Staff review
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20 Option 1 Blue Ribbon Commission Appointed by Managers or
Elected Officials Possible categories business, hospitality,
education, land development, finance, neighborhoods, academic 8-12
members City and County staff supported
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21 Option 2 Joint Task Force of Elected Officials City and
County appoint representatives from each of their boards Two
possibilities: Five and Five Use Citys Budget Committee and five
members from County Three and Three New appointments from each
board City and County staff supported
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22 Option 3 Third Party Administered Study Joint selection of
outside consultant or non-profit agency Use of more elaborate
decision-making or research techniques (surveys, focus groups,
benchmark analysis, etc.) Option to include citizen input or
elected official representation
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23 Option 4 Staff Joint Review City and County staff report to
identify, analyze and recommend revenue alternative options Report
presented to both City and County boards for review and directions
on next steps
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24 Reason 4 Why Were Better County commissioners could probably
beat up the City Council members in a fair fight The view from the
15 th floor is so much better than the 11 th
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25 Next Steps Wait for City to figure out how it wants to
proceed, and wait, and wait Go to the legislature and get turned
down Have elected officials tell us to find waste, fraud and abuse
in budget County raises property taxes again City doesnt raise
taxes and complains
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26 The rest of the Top 5 Mecklenburg 5.Who built the arena?
6.Were not building a railroad 7.Did I mention we raise taxes like
its going out of style Charlotte 5.We can annex baby! 6.Two words:
No Schools!! 7.Weve got 4 enterprise funds mo money, mo money! 8.We
have Police (& guns)! 9.We have Fire (& water hoses)!
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27 Q & A If you want a copy of this presentation
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28 Developing Alternative Sources of Revenue Ruffin Hall Budget
& Evaluation Director City of Charlotte Hyong Yi Director of
Mgmt and Budget Mecklenburg County Or Five Reasons Why Mecklenburg
County Is Better Than The City of Charlotte Or Five Reasons Why
Charlotte Is Better Than Mecklenburg County NCLGBA Presentation
December 8, 2005