By April Bethea
abethea@charlotteobserver.com

Mecklenburg commissioners narrowly approved a county budget Tuesday that sends more money to schools, libraries and other services - and raises tax bills for most homeowners.

The $1.38 billion spending plan actually lowers the property tax rate by 2.21 cents. But nearly 57 percent of homeowners will pay more because the county reset property values this year, and most of those appraisals rose.

The budget gives $26 million more to Charlotte-Mecklenburg Schools, expands hours at regional libraries and restores merit raises for county workers for the first time in two years.

It also cuts $2 million from the Department of Social Services, while eliminating a long-standing $16 million-plus subsidy to local hospitals for indigent care.

As expected, the budget was approved on a 5-4 party-line vote with board Democrats backing the plan. Still, Republican commissioners left their fingerprints on the plan after successfully proposing about $10 million in cuts last week to County Manager Harry Jones' original budget recommendation.

Before the vote, commissioners from both parties spoke of the need to balance keeping the county affordable and raising money for education and other services. But they disagreed on how well the new budget met that goal.

Democrats called the plan a "fair compromise" that lowered the tax rate slightly while giving more money to schools and workforce development.

"I think it's a responsible budget," said Harold Cogdell. "It's a budget that in many ways addressed the needs of the community in a balanced way."

Republicans countered that while the budget does cut spending in some areas, it doesn't go far enough to limit higher tax bills for many homeowners.

"Shame on us if we ever forget who is paying the bills in this county," said Karen Bentley. "... I for one am proud to say I am a taxpayer advocate."

The budget adopted Tuesday is the first in three years that increases spending. The county cut about $146.7 million the past two years as sales taxes and other revenue sources fell after the recession.

In contrast, this budget will grow by about $70 million starting July 1, mostly through property taxes. But the county also expects to collect more in sales taxes next year. In budget deliberations, Republican commissioners successfully pitched a $3 million increase to staff sales tax projections.

The budget plan adds money to areas that county leaders say are top priorities. For example, it provides money to support a countywide compliance program and other financial reforms. It also sets up a special debt fund to limit how much is spent on construction in the future.

Republican Neil Cooksey worried the county may be spending too much, too soon. He pointed to the unemployment rate and continued decline of home prices as a sign the economy is still fragile.

But Democrat Dumont Clarke said later that the county is starting to turn around, though the recovery isn't as even as some would like.

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