NC: Matthews ‘no’ vote prompts Charlotte City Council questions about transit sales tax deal

Aug. 15, 2024
The draft legislation caps spending on light rail, commuter rail and streetcar projects at 40% of the new sales tax revenue. Spending on buses — including bus rapid transit, micro-transit and mobility hubs — would be capped at 20% of revenue, leaving 40% of the new money for roads in an effort to appease Republican state legislators.

Charlotte leaders are set to vote in three weeks, but City Council members on a key committee said Tuesday they still have basic questions about a deal to get a sales tax increase on the ballot next year.

For the first time publicly, members of Charlotte City Council’s transportation committee discussed draft legislation to get a 1-cent sales tax increase on ballots to fund transportation and the city’s deal with Norfolk Southern to purchase railroad tracks for the Red Line commuter rail to Lake Norman towns.

The draft legislation caps spending on light rail, commuter rail and streetcar projects at 40% of the new sales tax revenue. Spending on buses — including bus rapid transit, micro-transit and mobility hubs — would be capped at 20% of revenue, leaving 40% of the new money for roads in an effort to appease Republican state legislators.

It would also create a new 27-member transit authority, with people appointed by local and state leaders.

One Mecklenburg town, Matthews, has already come out against the proposal. And at Tuesday’s meeting, some committee members raised their own concerns and asked about making changes to the deal.

“I understand we need to move fast, but it’s the process and the lack of transparency for me that I’m challenged with,” Council member Renee Johnson said.

Council members raise questions about transparency, process

Johnson said she “applauds” Matthews leaders for their decision and concerns about the eastern portion of the Silver Line light rail project are worth discussing. City leaders acknowledged for the first time publicly Tuesday the eastern portion of the line from the Charlotte Douglas Airport, around uptown and to Matthews could be converted to bus rapid transit because of funding limitations.

“I don’t want to be a part of a council that selects winners or losers or makes what feels like a short-sighted decision,” she said.

Johnson also asked about the lack of public discussion and involvement from elected officials while the managers of Charlotte, Mecklenburg County and local towns debated the draft legislation.

“The elected officials have not been involved in these discussions, and that’s important,” she said.

Council member Malcolm Graham raised similar concerns Tuesday. He previously told The Charlotte Observer he supports the Red Line purchase and “a bill that talks specifically about the 1-cent sales tax.” But he wants elected officials more involved in crafting a new transit authority.

“I’m still struggling,” he said Tuesday.

Council member Marjorie Molina, whose District 5 includes much of east Charlotte, said her constituents have similar concerns as Matthews.

“There’s a perception of winners and losers,” she said.

Others were more supportive of the proposal, including Mayor Pro Tem Danté Anderson, who called it “a generational opportunity.” She acknowledged Matthews’ vote but noted the county’s other towns “have circled the wagons.”

“I think it’s important for us to acknowledge all of the work that has been done through various jurisdictions,” she said.

Committee Chairman Ed Driggs said “the plan is not perfect,” but he believes it presents “a milestone moment.”

“I believe it will take us years to get back to this point, if ever,” he said of what could happen if the deal isn’t ultimately approved.

Will dissent derail plan?

Speaking to reporters after Tuesday’s meeting, Driggs said his biggest concern is that officials lose track of the most important goal — getting new funding for transportation projects and the Red Line tracks.

There’s still a “strong desire” to get both the Red Line deal and the draft legislation done, Jones said.

“In all fairness to the council, it’s the first time there’s been a public discussion about this, and it’s a lot,” he said.

Asked whether municipalities making changes to the draft bill would create issues, Driggs said the city must make sure everyone ends up with the same resolution. Jones said during the meeting council members can make changes, but he’s not sure how legislators would react to multiple drafts.

“It’s important for us to be unified in our approach to the Legislature. They are going to expect us to come in in unison, arm in arm,” Driggs said. “... That’s difficult, of course, in the time frame we’re talking about, not impossible.”

What’s next for Red Line purchase, transit deal?

Charlotte City Council members will get a closed session briefing on the Red Line purchase Aug. 19 and discuss transit at their Aug. 23 meeting. They’re scheduled to vote on both the Red Line deal and a resolution in support of the draft legislation Sept. 3.

Norfolk Southern set a Sept. 9 deadline to close the Red Line deal, and it’s still not clear how much Charlotte could spent to purchase or lease the tracks. Jones said “it would be great” for Charlotte to sign off on both the purchase and the sales tax referendum legislation by then but that they’re separate items.

“What’s occurring is that Charlotte’s taken the risk by making the purchase, and we’re trying to have safeguards,” he said.

Charlotte officials want the Legislature to consider legislation as soon as November and to get the a sales tax referendum on the ballot in 2025, according to Tuesday’s presentation.

Driggs said legislators told him that timeline would be “a big lift, but not impossible.”

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