Gastonia eyes $332.5M budget with no tax hike, 4% employee raises, and higher water bills. Council to continue discussion at Tuesday night meeting.
GASTONIA, N.C. — The City of Gastonia is considering a $332.55 million budget for the upcoming fiscal year, a financial plan that avoids a property tax increase while still funding infrastructure improvements, public safety upgrades, and employee raises.
The City Council is scheduled to continue discussions on the proposed budget during its meeting on Tuesday, following the formal presentation earlier this month.
City Manager Michael Peoples presented the budget on May 6, calling it a “sound financial plan” that supports the council’s unanimously adopted goals and reflects the city’s long-term vision.
“This proposed budget keeps the tax rate at $0.47 per $100, which remains the lowest in over twenty years,” Peoples said during that presentation.
It also reflects a 3.94% decrease from the previous year’s budget, even as costs for equipment, retirement contributions, and operations continue to climb.
Peoples noted that the city worked to reduce spending in several areas during the budget development process, trimming requests and prioritizing needs without compromising core services.
Key Highlights:
4% across-the-board salary increase for full-time employees
Three new positions for the Gastonia Police Department’s Real Time Crime Center
Funding for K9 units, thermal imaging cameras, and defibrillator replacements
$2.9 million allocated for street resurfacing
$8 million in electric system improvements
5% increase in water and sewer rates, or $4.28 more per month for the average household
The city also plans to continue equipment replacement through a structured loan process, covering new police vehicles, sanitation trucks, and utility equipment.
More than $10 million in departmental requests were submitted, but only about half were approved.
The budget includes revised fees for services at the Schiele Museum, fire department, airport, and within planning and engineering.
Major infrastructure projects—such as water and sewer line upgrades, electric grid modernization, and road maintenance—remain a top priority in the city’s long-term strategy.
Peoples said the proposed spending plan builds on past investments while preparing the city to handle future challenges, including increasing demand for services and potential emergencies like Hurricane Helene, which caused major infrastructure damage.
No residents signed up to speak during the May 6 public hearing and councilmembers voted to close the hearing.
No word yet on whether another public hearing will take place, but a final vote on the FY2026 budget is expected at the Gastonia City Council meeting on Tuesday, June 3.
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