Property taxes are expected to remain stable in 2022; revival next year
By Dave Yochum. It appears that a multi-million dollar budget increase – due to COVID-induced belt tightening and the city’s underestimation of revenue – will limit potential property tax increases in 2022.
“Based on all of my first meetings with city management and our new board members, I am happy to report that citizens can expect NO tax increases for our next fiscal year.” , said newly re-elected commissioner Dave Gilroy.
Almost no one wants to pay more taxes. Property taxes can add up quickly on a typical $ 300,000 home.
The local tax rate (0.222) on a $ 300,000 property is $ 666 per year. The Mecklenburg County tax rate of 0.6169 means the owner of $ 300,000 pays an additional $ 1,850.70. The owner of a home at $ 900,000 – there is more and more of it – pays three times as much.
Revaluation in 1 year
With a reassessment on the horizon, it counts: Mecklenburg County has officially moved to a four-year, county-wide reassessment cycle, the next should enter into force January 1, 2023.
The problem, however, is that the city’s fund or savings account balance has over $ 30 million, earning Cornelius taxpayers 0.2% a year, while inflation is 6. , 2%.
“This means our citizens are earning a negative 6% annual return on the taxpayer money the city has accumulated with the intention of spending many years, if ever,” said Gilroy.
This equates to a “somewhat tragic” annual cost of $ 1.8 million to the citizens of Cornelius in real terms, the 14-year-old commissioner said.
Taxes are supposed to be collected annually by the government to pay for essential public services in the current year or very short term.
“It is never appropriate for government at any level to collect taxpayer money for many years, in Cornelius’ case, 5 to 10 years and more, before the money is spent. Said Gilroy.
Upcoming road projects
Normally the money is transferred to the city fund / savings account balance and ends up in road projects, but they have been held up by huge budget deficits at the North Carolina Department of Transportation.
According to Commissioner Denis Bilodeau, some $ 100 million of road improvements are planned and the city will foot the bill of $ 40 million.
That said, it’s unclear how much the West Catawba expansion will actually cost, given inflation in the construction industry.
Ongoing budget discussions
This will all be sorted out in the coming months, starting with budget discussions and the annual budget retreat at the Graylyn Estate and International Conference Center in Winston-Salem. Two days of intense discussions with elected officials and senior city officials are scheduled for March 30 and 31.
The city is in quite a good position financially: There is also about $ 8 million in unbudgeted US bailout funds from early 2021 that have not been spent.