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Council members press city staff on budget choices, Salvation Army property and utility rate increases
Summary
Councilmembers requested no council pay increases, deferred any manager raise pending evaluation, and signaled opposition to a proposed 5% water/sewer increase; residents urged scrutiny of a $2.277 million General Fund allocation to purchase the Salvation Army property.
At a city council meeting heavy with public comment, several council members said they want to hold the line on council raises, complete a manager evaluation before considering any salary increase for the city manager, and avoid a proposed 5% water and sewer rate increase in the coming fiscal year.
Public speakers repeatedly raised concerns about homelessness and the city's purchase of the Salvation Army building. That proposed appropriation ( "$2,277,000 from the General Fund," as cited by public speakers) drew criticism from residents and civic groups who asked the council to explain the planned use of the property before locking up taxpayer funds. "If over $2,000,000 could be allocated to spend without plans, I think the council can also figure out ways to be more inclusive with the organizations that are trying to do great things for our city," Sean Bates, president of the Gastonia NAACP, said during public expression.
Council members also discussed the city's fund balance. Staff distributed figures from the recent audit showing available fund balance for additional appropriations at $3,144,609 (an audited estimate after required reserves and encumbrances). Council members noted the city has several capital needs and that the fund balance can fluctuate as final close-out entries are made for the fiscal year.
Several council members asked staff to present alternatives ahead of the formal budget adoption meeting: specifically, to (1) defer any council salary adjustments, (2) schedule and complete a city manager performance evaluation before approving any change to the manager's compensation, (3) remove or delay a proposed 5% water and sewer fee increase, and (4) explore whether the property appropriation for the Salvation Army could be delayed or better explained to the public.
City staff told the council they would provide additional detail for the June 3 budget meeting, including an updated fund-balance estimate, line-item detail about positions that were not filled (and the resulting salary savings), and explanations of the larger "other" line-items in enterprise and general fund schedules. The manager also said staff would return with options to lower the tax rate if council wished, bearing in mind the trade-off with capital needs and operating commitments.
Public speakers linked these budget decisions to other items earlier in the meeting: event in-kind services, park funding, and the annexation discussion. Several speakers pressed the council to prioritize shelter and housing services for the unhoused while asking for transparent accounting of the new building purchase.
Ending note: Staff will return to the council with requested detail and scenarios for adoption at the scheduled budget meeting in early June.
