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Budget Includes Significant Positives for Municipalities

September 16, 2015

September 16, 2015
Contact: Scott Mooneyham
(919) 715-9768
Budget Includes Significant Positives for Municipalities
Restoration of historic tax credits, utility relocation reimbursements among gains that will aid in city investments, economic development efforts
(RALEIGH)  -- The North Carolina League of Municipalities, representing 540 cities, towns and villages across the state, thanks legislators for their work in crafting a state budget that includes several provisions that will aid municipalities in their efforts to make investments that benefit residents and promote economic development.

Restoration of an historic rehabilitation tax credit will have an immediate, positive effect on cities and towns across the state, as economic development projects in the pipeline move forward with this important state commitment to locally-led efforts involving the public and private sectors.

Financial relief for municipalities with populations under 50,000 for utility line relocations forced by state road construction will stop an unfair burden placed on these towns and speedier completion of construction projects.
Other budget highlights crucial to North Carolina cities and towns include:
  •  Funding for matching grants to equip police officers with body-worn cameras.
  •  Powell Bill transportation funding of $147.5 million in both FY 2015-16 and 2016-17.
  • An increase to $30 million for grants to bring film and TV production to North Carolina.
  • Putting municipalities on equal footing by allowing all to charge a municipal vehicle tax of up to $30. (Currently, all cities and towns can charge $5, while some are allowed to charge up to $30 through local legislation.)
  • Increasing total, two-year funding to $38.7 million for Clean Water Management Trust Fund grants.
  • Increasing total, two-year funding to $37.2 million for Parks and Recreation Trust Fund grants.
  • Providing additional state matching dollars for the Clean Water State Revolving Fund, bringing total state funding to $5.1 million.
  • Revising Senate language that could have eliminated Municipal Service Districts through resident referenda and without business owner input; the revised provision will require more elected body-oversight and citizen input.

“Even with the policy challenges continuing to face cities and towns, these budget provisions will help municipalities in making the investments that are key to providing the quality of life that North Carolinians have come to expect and that businesses need to grow and thrive,” said NCLM President Ronnie Wall. “We are grateful that legislators heard the concerns of cities and towns on issues like historic preservations tax credits that are so crucial to municipal-led efforts to bring jobs to communities across the state.”

Wall also expressed appreciation for legislative leaders who, throughout the legislative session, considered the points raised by the League regarding various sales tax proposals.

“Just weeks before the budget deal was announced, I sat down with Senator Harry Brown and I truly appreciate that he was open to considering all sides of the issues,” said Wall, who is serving his fifth term as mayor of Burlington.

About the League

The North Carolina League of Municipalities is a membership association of 540 great hometowns – representing nearly every municipality in the state. The League advocates for its members, from the largest city to the smallest village, on the full range of legislative issues that affect municipalities.
For more than 100 years, the League has promoted – and continues to promote – good government by offering non-partisan advocacy, insurance and other services – as directed by its membership.


Posted on September 16, 2015 by Scott Mooneyham