County manager presents FY 2026-27 budget; commissioners debate deeper tax cut

County manager Justin Mundy presented the Alexander County proposed fiscal year 2026-27 budget to the Board of Commissioners on May 18 and outlined revenue assumptions, proposed spending and recommended policy choices.

Mundy said the proposed general fund budget is listed in the meeting record as "62,779,84," and described that figure as a 3.62% increase from the prior fiscal year. He told the board the proposed package includes a two-cent property tax decrease that would lower the tax rate to 63 cents per $100 of valuation, a 3% cost-of-living adjustment for all county employees, continuation of a holiday bonus and a merit bonus opportunity, and funding for up to a 2% 401(k) match for employees who contribute.

Mundy outlined capital needs and recommended capital outlays in the general fund (roughly $1.8 million of prioritized items), including: EMS Station 2 expansion and equipment ($341,243); a courthouse chiller ($200,000); four sheriff's office vehicles ($191,732); CVCC paving and HVAC replacements ($190,000); and other vehicle and maintenance items. Enterprise fund capital items cited included a track loader/compactor for solid waste ($100,000) and water meter upgrades and sewer capacity purchases ($425,000 and $375,000, respectively).

Mundy said Alexander County Schools submitted a funding request of $8,426,361 for FY27 to cover items including school nurse funding shortfalls, NC Pre-K shortfalls, a media innovation coordinator position and local salary increases. The manager noted fee adjustments proposed by several departments and relayed that the City of Hickory has proposed a 10% water and sewer volume rate increase that would affect bulk customers.

On state funding shifts, Mundy said provisions in the HR1 bill that pass more Medicaid and SNAP funding responsibilities to counties could negatively affect Alexander County by an estimated $500,000 to $1.5 million, though he cautioned the exact local impact is not yet known.

Commissioners responded with detailed discussion: several said they supported tax relief to residents and asked for deeper reductions than the two-cent proposal. One commissioner advocated for a five-cent reduction to the tax rate (to about 60 cents) citing revaluation and new subdivisions as part of the revenue picture and said they ran informal numbers to support that position. Other commissioners pressed on trimming department requests, delaying some capital purchases (for example, an ambulance was discussed as pushed to a later year), and on whether fire district tax-rate increases should be approved now or deferred.

Several speakers praised county staff and the finance office for conservative management, and commissioners emphasized the budget is a multi-step process with final approval and amendments to follow. Mundy and staff reiterated that the presentation was the budget message only and that no vote on the budget would occur that evening.

The board took no budget action at the May 18 meeting; the budget message will be followed by additional review and a later vote.