Charlotte City Council's first public conversation on transit sales tax proposal was tricky

Charlotte City Council's first public discussion on the latest funding plan for transportation was, like the issue itself, prolonged and messy.

Why it matters: Managers of most Mecklenburg County cities and towns hope their elected bodies will agree to the proposed legislation so they can finally introduce something to the General Assembly, which could allow the sales tax referendum to be on voters' ballots as early as 2025.

• "If we did decide not to proceed with this draft legislation in favor of a different process, I believe it will take us years to get back to this point, if ever," Ed Driggs, chair of the transportation committee, said during Tuesday's meeting.

Catch up quick: Mecklenburg County's jurisdictions have long been at odds over the regional priorities for transit. But seven of eight local managers recently reached a consensus on a plan.

• They're asking their elected bodies to support sending a draft bill to the General Assembly.

What they're saying: Following a comprehensive presentation from city staff on the potential tax revenue and terms of a new regional transit authority, members of city council's transportation committee started rattling off questions:

• Is it guaranteed Charlotte's Gold Line streetcar will be extended ? Will the Silver Line light rail still be built to Matthews? Should we consider a higher sales tax to fund all the projects?
• City manager Marcus Jones and CATS interim CEO Brent Cagle said there will eventually need to be an updated, "fiscally constrained" transit plan that identifies which projects they can fund.

Yes, but: The managers' draft legislation prioritizes the Red Line , a future commuter rail along Norfolk Southern's tracks connecting Uptown and Lake Norman. Matthews town leaders oppose the legislation because the spending plan would not afford the Silver Line, a proposed east-west light rail.

• Lawmakers have said they would require a significant portion of the revenue to fund roads. That's why the draft states that only 40% of revenue would go toward transit.
• Because of the cap, Jones says, "it became clear that you couldn't pay for all the projects."

Zoom in: The draft requires work on the Red Line to be halfway through before any other rail project is completed. (The Red Line project was supposed to happen years ago but stalled, and the money went toward the Blue Line light rail instead.)

• Norfolk Southern has set a deadline for the City of Charlotte to close on an acquisition of its rail tracks by Sept. 9. City council would likely have to approve the purchase by Sept. 3.
• A regional transit authority, once established, would reimburse the city for the acquisition.
• Some council members questioned if this proposed plan created "winners" (aka, north Mecklenburg) and "losers" (Matthews).

The intrigue: The Red Line is considered the older, shunned project. The existing sales tax, passed in 1998, was supposed to fund the commuter rail, but it never happened because Norfolk Southern refused to share its tracks. Last year, the city and railroad operator reopened negotiations.

• "This winners versus losers narrative — the northern towns are not winners. They were supposed to get the Red Line 26 years ago," Driggs said.
• A $50 million investment in the Silver Line was approved in 2019.
• "If you take that away from us, how do we then get the equal economic impact that other places are going to see?" asked council member Marjorie Molina, who represents east Charlotte.

By the numbers: The sales tax would generate $345 million in its first year and $19.4 billion over 30 years.

• Broken down, that's $7.8 billion for road projects, $3.8 billion for bus and $7.8 billion for rail.
• Plus, the city anticipates getting an additional $5.9 billion from the federal government, grants and fares.
• An estimated 30% of the sales tax revenue would come from people outside Mecklenburg County.

What's next: The full city council will discuss the transportation plan on Aug. 26.

• So far, most council members seem on board with buying the Norfolk Southern tracks. But questions linger about the sales tax, which projects it would fund and how to make all parts of Mecklenburg County happy.
• Council member Reneé Perkins Johnson suggested the process was rushed and not transparent.
• "In all fairness to the council, it's the first time there's been a public discussion about this," Jones told reporters after the meeting.

The bottom line: This draft legislation has to go through multiple local bodies and the General Assembly before the referendum goes on the ballot. But the public has the final say on whether the sales tax passes, and they'll have questions, too.