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Gastonia manager proposes $378 million budget with no property tax increase; councils discuss raises and utility fee rises
Summary
City Manager Michael Peoples presented a proposed FY2026–27 budget of about $378 million with no tax increase, a 3.5% across‑the‑board raise (plus a 1% career development increase), and proposed utility and solid waste fee changes; councilmembers and public commenters asked questions and raised affordability concerns.
City Manager Michael Peoples presented the proposed FY2026–27 budget and told council the plan includes no property tax increase. "There is 0 tax increase proposed in this budget," Peoples said, describing a citywide budget of roughly $378,000,000 and noting that more than half of that total comes from enterprise funds (water, sewer, electric and related services).
Peoples outlined compensation changes—3.5% across the board effective July 1 and an additional 1% career development increase effective Jan. 1, 2027—and called out rising retirement and health care costs as drivers of the budget. He highlighted enterprise fund investments in water, sewer and electric infrastructure, capital projects including a potential $7,000,000 Fire Station 9, and $1,000,000 for public safety radios.
On utility and fee proposals, the manager and staff described proposed water and sewer rate increases (7.5% cited as roughly $6 per month for an average user) and a proposed $2 increase to solid waste fees. Peoples said the increases, combined with the fee schedule, would keep the city fiscally balanced without raising the property tax rate.
Council members debated tradeoffs. Councilman Silverman praised the balanced approach while expressing concern about reliance on user fee increases and household affordability in East End and Ward 2. Mayor Pro Tem Gallagher welcomed the employee pay adjustments and emphasized that the rate stabilization fund helped limit electric rate impacts. Councilwoman Drew stressed the careful consideration applied to the budget and acknowledged voters’ concerns about affordability.
Public commenters raised concerns about the size of the overall spending plan. Mike Tamberella said the newly posted budget showed a $45.2 million (22%) increase in spending and urged the council to find a 1% cut in each department to produce savings for taxpayers.
What happened at the meeting: The council held the required public hearing on the proposed budget and closed the hearing after public comment. Council did not adopt the budget at the May 4 meeting; staff noted adoption would be considered at a future meeting (the manager indicated a June 2 adoption target).
What’s next: Staff will continue budget work and return for adoption deliberations. Council members asked for more detailed departmental breakdowns and additional follow‑up information regarding specific program costs and revenue sources.
