Gastonia council delays FY2026 budget vote, asks staff for additional detail and reopens public hearing process

City Manager Michael Peoples presented the proposed fiscal year 2026 budget and an amended ordinance reflecting council direction to reduce the property tax rate by one cent and to suspend a planned 5% water and sewer rate increase. After extended discussion and public comment, the council voted 5–2 to table final approval and requested additional information before the next meeting.

Peoples told council the manager’s original proposal included a placeholder for a 4% compensation increase; under the amended package staff reduced that placeholder to 3% plus a 1% career development increase effective Jan. 1, 2026. He said a one‑cent tax cut (from 47¢ to 46¢) would reduce ad valorem revenue by about $1,050,000; an associated estimated sales‑tax reduction tied to levy would be roughly $80,000, for a combined impact of about $1,130,000 on the general fund. Suspending the 5% utility rate increase would reduce water and sewer revenues by about $2,543,000, he said.

Council members and multiple public commenters questioned program details and asked for line‑item backup to assess proposed cuts and assignments. Public speakers urged delaying the vote, citing concerns about priorities (administrative costs, event spending, and previous unbudgeted expenditures); one speaker recommended reopening the public hearing. Several council members said they wanted more time to review the compensation study results and to identify specific line items to trim rather than accept summary changes without backup.

Councilwoman Stepp moved to table the budget until the council’s June 17 meeting and to request that council members submit reasonable information requests to the budget officer by 5 p.m. on June 4; the motion passed 5–2. City staff said they would provide targeted department information where practicable and that full line‑by‑line printouts would be voluminous; staff asked council to specify which departmental or program details they most wanted. The city clerk will confirm advertising requirements before reopening any public hearing to meet state notice rules.

Council members noted capital needs (streets resurfacing, bond issuance debt service, and the cost of replacing fire apparatus in recent years) and said delaying a decision would allow more data to be gathered without immediately triggering an interim budget. The city will publish the materials requested and accept specific questions from council by the deadline set in the motion; staff will return with the requested details at the June 17 meeting or call a special meeting if statutory notice and advertising timelines require it.