The Mayor and City Council at their June 20 meeting unanimously adopted the City of Gastonia’s Fiscal Year 2026 (FY26) budget that was presented at the May 6 Public Hearing. The $332 million budget balances long-term investments with a proactive response to the City’s current challenges. The FY26 budget represents a 3.94% decrease from the FY2024–2025 adopted budget, while maintaining the existing property tax rate of $0.47 per $100 of assessed value.
This year’s budget reflects the City Council’s strategic commitment to fiscal responsibility, service continuity, and future resilience. It continues to support vital areas such as infrastructure, public safety, and economic development while navigating reduced availability of federal and state funding.
A Budget Shaped by Real-World Events
The budget planning process for FY2026 was shaped in part by the impacts of Hurricane Helene, which struck the community in FY2025. The storm caused significant damage to City-owned property and infrastructure, strained resources, and required extensive emergency response, utility restoration, and debris removal. Many residents also experienced property damage and tree loss.
In addition to weather-related challenges, the City of Gastonia is also adapting to a shift in funding. In recent years, federal and state grants have supported numerous community capital improvement projects. As those funding sources become less predictable, the City is transitioning toward more sustainable local strategies to maintain momentum in quality-of-life enhancements and economic growth.
“These events serve as a stark reminder of how quickly circumstances can change,” said City Manager Michael Peoples. “We are using this experience to strengthen our emergency preparedness and ensure our City is ready to face future challenges—while also exploring innovative funding solutions to sustain essential services and progress.”
Key Budget Highlights
- Utility Rates: The Council approved a 2.5% increase for residential customers within city limits, and a 5% increase for customers outside the city and commercial/industrial users, a change from the originally proposed across-the-board 5% hike. These adjustments help fund critical water and sewer system needs while reducing the impact on in-town residents.
- Employee Compensation: The FY2026 budget includes a 3.5% salary increase for all City employees beginning July 1, 2025. Additionally, those who complete the Career Development Incentive Program will receive an additional 1% increase starting January 1, 2026.
- Stable Tax Rate: The budget maintains the current property tax rate, reflecting the City’s effort to minimize the burden on taxpayers while investing in essential services and infrastructure.
Looking Ahead
As the City implements the FY2026 budget, it will continue to focus on transparency, resilience, and innovation. Moreover, the Mayor and City Council plan to look for ways to simplify the overall budget process – from planning to implementation. Residents are encouraged to stay engaged as the City works to deliver services and infrastructure that support a thriving, future-ready community.