Gaston County manager proposes FY2026 budget with flat tax rate, absorbs $31 million in cost increases

GASTON COUNTY, N.C. — Gaston County Manager Matthew Roten on May 13 presented a recommended fiscal year 2026 budget that holds the county tax rate at 59.9 cents per $100 of assessed value, proposes no appropriation of general‑fund balance and absorbs more than $31 million in increased expenses through cuts and reallocations.

Roten told the Board of Commissioners the proposal is intended to prioritize core services and board objectives while restoring fiscal stability after several years of tighter margins. “I’m recommending a tax rate of 59.9¢ per hundred dollars of assessed value,” Roten said during the work session.

Roten said the recommended general fund is flat compared with the prior year and that the budget absorbs $31 million in expense increases, including roughly $16.2 million for new school debt tied to recently issued general obligation bonds, mandatory retirement contribution increases, health care cost growth and other unavoidable costs. The proposal includes $698,000 in recommended new positions and allocates $500,000 additional for teacher supplements and $250,000 for Gaston College.

The manager reported the county’s unassigned fund balance rose to 18% after the FY2024 audit, placing the county within its policy target range of 15–20% for the first time in a decade. Roten said staff also implemented cost‑saving measures since he took office in August that he estimated have produced the equivalent of a two‑cent tax reduction, about $6.6 million, through renegotiated contracts, fee reviews, vacancy management and process improvements.

Roten and staff described a notable decline in sales‑and‑use tax receipts that informed the budget. The proposed budget assumes a 9% drop in sales tax across all funds due to unrealized revenues in FY2025 and a shift in the distribution formula tied to differences between county and municipal tax levies. “When we lowered our tax rate and municipalities kept or raised theirs, the county’s share of sales tax decreased,” Roten said, summarizing the mechanics behind the revenue change.

The recommended capital program totals about $55 million across funds, the manager said, including roughly $36 million for school debt and capital, $11 million for county debt service and about $5.5 million for solid‑waste enterprise fund investments. Roten noted limited capacity for new capital until larger debt drops off in the coming years.

Commissioners asked questions after the presentation. Commissioner Scott Sheehan praised the staff’s work and said the board had been “very collaborative,” adding he was “very proud” of the product. Several commissioners emphasized the importance of long‑term planning around the county’s changing revenue mix.

Roten reminded the board and public that the recommended budget will be available for public review and that a public hearing and scheduled adoption are set for May 27. He also said staff would continue monitoring revenues and implementing process improvements after adoption.

The meeting proceeded to other agenda items; later in the session the board voted to go into closed session under a cited statute and then returned to open session without taking action.