Charlotte’s Financial Health Strengthens, Earning a “B” Grade

Charlotte’s financial condition continued to improve in fiscal year 2023, earning the city a “B” grade from Truth in Accounting. With a $321.8 million surplus, Charlotte remains classified as a “Sunshine City,” meaning it has more than enough money to cover its financial obligations. This equates to a Taxpayer Surplus™ of $1,000.

The city’s financial performance improved due to revenue growth and a reduction in retiree healthcare debt. Charlotte reported $2.95 billion in government-wide revenues, with 43% coming from fees, fines, and service charges, and 37% from taxes—an overall increase of 8.8% from the prior year. Expenses totaled $2.37 billion, with transportation (33%) and public safety (24%) being the largest spending categories, reflecting the city’s focus on infrastructure and safety.
Key findings from the report include:

• Charlotte had $3 billion available to pay $2.7 billion in bills.
• The city’s financial surplus grew to $321.8 million, equating to a $1,000 Taxpayer Surplus™.
• Increased revenues and a reduction in retiree healthcare debt helped strengthen Charlotte’s financial position.

As Charlotte continues its financial growth, balancing revenue increases with strategic investments in essential services and infrastructure will be critical for maintaining long-term fiscal stability.

For those interested in a deeper dive into Charlotte’s finances—and how it compares to other major U.S. cities—you can read the full Financial State of the Cities 2025 report here.