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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

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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