The Gastonia City Council is to vote June 4 on the City budget for the fiscal year that begins July 1. Almost 73% of the General Fund are costs related to personnel expenses. The budget increased by $1.7 million to provide competitive compensation for employees, with salaries and benefits accounting for more than $73.5 million of the total City budget.
For the fifth consecutive year, City workers will receive raises. Similar to last year, the budget provides for salary increases of 2.5-4% for full-time and part-time employees, effective June 22. The budget also continues the annual $350 Christmas bonus for eligible employees and the 401(k) program for eligible employees with a 5% match.
The City’s health insurance and retiree-funding costs have increased, but this budget does not pass along those added costs to employees. The premiums employees pay for health insurance coverage will not change. However, the budget includes a 17% increase to cover medical expenses incurred by employees enrolled in the City’s health insurance program. The City will continue to make a $750 payment to each eligible employee’s Health Savings Account. Employees not federally eligible for an HSA will receive the same amount. The onsite clinic remains open to employees and eligible retirees. Wellness initiatives and incentives will continue in the coming fiscal year.
The City budget also includes:
- $3 million to replace aging technology, equipment and vehicles used by Police, Fire, Public Works and other departments
- $1.3 million for maintenance of and repairs to City buildings and park facilities
- $1.3 million for transportation projects and street improvements
The proposed budget decreases the City’s tax rate. Some property tax bills will increase because of Gaston County’s recent property revaluation. The budget does not increase electric, water, sewer, solid waste or stormwater fees.