KANNAPOLIS, NC (WBTV) - Kannapolis City Manager Mike Legg presented the proposed Fiscal Year 2019 budget to the Kannapolis City Council Tuesday evening. The proposed FY 2019 budget is $69,264,364 which includes all seven operating funds of the City.
The budget includes no property tax increase.
If approved, the current tax rate will remain at .63 cents per $100 valuation - a home valued at $150,000 will pay $945 annually in property taxes for all City services.
According to a news release from Kannapolis, the City's budget is composed of two primary revenue sources: property taxes and sales taxes. The City's population is expected to be 50,000 by the end of this year – an approximate 15% increase since 2010. This population growth, largely the result of new residential development, equates to an increase of $756,944 in new property tax revenues due to private sector growth in the FY 2018 budget. Sales tax revenues are projected to increase by $455,000 in FY 2019.
"This budget concentrates on investments for long term economic development and City employee retention and recruitment. We expect the City to continue to grow as Kannapolis has an inviting environment for new businesses. Our close proximity to the amenities of the Charlotte region, investments in infrastructure and quality of life items such as our parks is driving this growth both in commercial and population growth," said City Manager Mike Legg. "The increases in property tax and sales tax revenues from new growth allows us to maintain our same property tax rate this budget year," continued Legg.
"In the past we have made significant investments in infrastructure along NC 73 and Kannapolis Parkway. This is now paying off as this is the area where our City is experiencing substantial business and residential growth, such as the new Amazon facility. As we continue to prepare for the City's future our emphasis on economic and job development continues with the Downtown Revitalization Project. We must invest in our downtown in order to transition the growth up Kannapolis Parkway and into what will be the heart of our City," he said.
"Our City budgets for the next few years will concentrate on this growth with long-term public safety, water and sewer, parks, and environmental services (garbage & recycling) projects. This budget is crafted to do just that with investments in infrastructure, facilities and our employees," continued Legg.
As the 20th largest City in North Carolina the City Council has placed a priority on retaining the City's experienced staff and recruiting additional professional staff in order to maintain and exceed City service standards. The budget includes adding 15 new positions spread among most of the City's departments including two police officers and one fire position.
The proposed budget calls for an increase in the environmental fee of $3.75 a month to recoup the cost of recycling/garbage and yard debris collection and a $15 increase in the annual vehicle license fee to pay for the costs of operating the Concord/Kannapolis Rider System and other transportation services.
Other notable items in the budget include:
· The Downtown Revitalization Project – first year debt expenditures for the sports and entertainment venue; the Demonstration Project parking deck; Phase II Streetscape and Infrastructure, and the renovation of College Station – the new home of the downtown Rowan Cabarrus Community College Cosmetology program.
· Investment in Employee Benefits – increases in salaries and benefits to compete with the surrounding regional market.
· Capital Improvements – funding for Fire Station II and III; Irish Buffalo Greenway Phase I, Oakwood Avenue Sidewalk, and Irish Buffalo Creek Sewer Line Extension.
· One-time expenses for the following:
o Unified Development Ordinance Reorganization
o Police Radio Tower Upgrades
o Master Plans for Eastside & Westside Parks
o Cannon Blvd Corridor Plan
o North Main St. Revitalization Plan
A public hearing on the budget is scheduled for 6 p.m., June 11, at Kannapolis City Hall with adoption scheduled for June 25. Visit kannapolisnc.gov to view the complete proposed budget document.