Charlotte manager previews $4.2 billion budget: no property‑tax increase planned, public safety dominates general fund

City Manager Marcus Jones and budget staff presented an early preview of the city’s next budget at the Charlotte City Council retreat, describing a $4.2 billion overall spending plan in which the general fund accounts for roughly $828 million and personnel costs consume most discretionary resources.

Key numbers and context

• Total budget and general fund: Jones described the city’s total budget as about $4.2 billion and said the general fund is approximately $828 million. Budget staff told the council about the distribution of revenues and internal service and enterprise funds used for utilities, transit and stormwater.

• Personnel costs dominate: Budget staff said about 73% of general‑fund spending is for personnel and that public safety accounts for the largest share of those positions. Ethan (strategy and budget) noted that roughly three‑quarters of dollars in the general fund go to existing staff and that ongoing revenue must back ongoing personnel commitments.

• No property‑tax increase planned: Staff said the manager’s proposed FY2026 budget will not include a planned property‑tax rate increase. Hannah (budget staff) presented the mechanics of revaluation and the “revenue neutral rate” that typically lowers the tax rate at revaluation unless the council takes additional action.

• Sales tax trends and uncertainty: Presenters cautioned that sales tax — the second‑largest revenue for the general fund — slowed after unusually high growth in recent years and is reported to the city with a quarter lag. Staff showed scenarios for sales tax and property tax growth and said projections are sensitive to national economic trends.

• Triple‑A bond rating and fiscal discipline: Marcus Jones and budget staff pointed to the city’s triple‑A rating as a product of disciplined fiscal practice, balanced budgets and reserve policies. Staff reiterated budget principles that avoid using one‑time revenue for ongoing expenses.

• Pay and unavoidable growth: Staff identified about $30.4 million in unavoidable FY2026 cost growth (contractual inflation, benefits and annualizing previously approved actions). The manager and budget team said they would present a proposed pay plan and options for covering unavoidable costs in the manager’s May proposal.

What council sought and staff follow-up

Council members asked for more detail on how compensation, recruitment and retention pressures — particularly in CMPD and fire staffing — would be accounted for in the proposed plan. Several members asked for continuing budget workshops and for staff to return with scenarios for tradeoffs and priorities. Staff said they would provide materials and continue the two‑year budget dialogue during committee meetings.

Ending note

Budget staff framed the retreat preview as an informational step in a longer process: the manager will return in May with a formal proposed budget and the council will hold public hearings and workshops before adoption. Council signaled interest in using the retreat guidance to shape priorities before the formal proposal is released.