Alexander County Manager Justin Mundy presented the 2026-2027 proposed budget at the May 18 meeting of the Board of Commissioners. The total proposed general fund budget is $62,779,084, which is a 3.62 percent increase compared to FY 2026. The proposed budget includes a two-cent property tax rate decrease, which would lower the tax rate to 63 cents per $100 valuation.
Mundy said he has worked extensively with county departments to analyze budget requests, which initially resulted in a shortfall of approximately $8 million. That amount has been reduced to $6.2 million, and fund balance will be used to balance the budget. Historically, the county has used appropriated fund balance to balance the budget, but has only spent some of the funds once in the past decade.
“I would like to thank you as the Board of Commissioners for your leadership, vision, feedback, and guidance in the budget process. I would also like to thank all of the department heads for their budget requests and input into the process,” said Mundy. “The collaboration between the board and team members has resulted in a proposed budget that reflects the priorities of the board being fiscally conservative while ensuring continued service and commitment to Alexander County citizens.”
“We will take no action tonight as this is strictly a public presentation,” said Vice Chairman Josh Lail. “The annual county budget is the biggest responsibility of the board every year. This is not something that comes together in a couple of hours. We’ve been discussing the budget for months. We don’t take the budget for granted or take it lightly.”
As part of the H.R. 1 bill, Mundy said more funding responsibilities for Medicaid and the Supplemental Nutrition Assistance Program (SNAP) are being passed down to the county level. Mundy said he estimates the negative impact will be between $500,000 to $1.5 million.
In terms of personnel, the proposed budget includes a 3 percent cost-of-living adjustment (COLA) for all county employees. Additional employee benefits include the continuation of the holiday bonus, a merit bonus opportunity, and up to a 2 percent 401(k) match. There is also funding available for the completion of an internal salary study. Numerous new positions were requested; however, after much discussion, three positions are being recommended: a part-time animal services technician, an economic development coordinator, and a senior center support assistant. Commissioners noted they have made substantial progress in public safety and emergency services salaries in recent years.
Departmental capital outlay requests totaled $2.8 million, with only $1.8 million included the proposed budget. The major items include: EMS Station #2 project – $341,243, courthouse chiller – $200,000, four vehicles for the Sheriff’s Office – $191,732, paving and HVAC replacement at CVCC Alexander Center – $190,000, various departmental vehicle replacements – $168,000, buildings and grounds improvements – $146,000, and animal services renovations and spay/neuter clinic – $100,000.
Mundy said there are three capital outlay requests in enterprise funds, which are paid with consumer usage fees. For the solid waste fund, a used track loader/compactor ($100,000) is recommended. For the water/sewer fund, water meter upgrades ($425,000) and sewer capacity purchase ($375,000) are included in the proposed budget.
Alexander County Schools submitted a total funding request of $8,426,361, which is an increase of $348,321 from the prior year’s budget. The requested increase would fund the school nurse funding shortfall, NC Pre-K funding shortfall, media/innovation coordinator at Ellendale, and salary increases for employees paid with local funds.
Commissioner Marty Pennell, who was chairman during budget discussions last year, said he told Superintendent Dr. Bill Griffin the county would provide the requested increase in 2025-2026, but there would not be a funding increase in 2026-2027. Commissioner Ronnie Reese said he has been pleased with the progress under Dr. Griffin’s leadership.
Vice Chairman Lail said, “Dr. Griffin has done an excellent job. The school system has trimmed a lot of fat, and I’ll be the first to congratulate them for running much leaner. I’m afraid some really hard decisions are going to have to be made in the not-too-distant future.”
Mundy said the City of Hickory is proposing 10 percent increases in water and sewer rates, subject to approval by the Hickory City Council.
Two fire departments requested fire tax rate increases. Ellendale requested a 2.2-cent increase and Stony Point requested a 1-cent increase. Commissioner Kent Herman said he has worked with the fire departments to ensure they have adequate funding and resources, but he cannot support the two requests to increase fire tax rates this year. Commissioner Pennell said the board let the fire departments determine their necessary tax rates last year.
Having recently made the final debt payment on the law enforcement center, the county is now debt-free in the general fund. “That is a testament to the board for being fiscally responsible,” said Mundy.
In the water and sewer fund, a $934,000 appropriation is budgeted to pay the principal and interest on four separate debts for water and sewer projects. The loans, which are being repaid with water and sewer revenues, will mature in 2028, 2035, 2040, and 2041.
Mundy said there are numerous county projects underway or to begin soon, but are not included in the general fund budget as they are accounted for in multi-year project budgets. Continuing projects include: ARPA waterline extension project (completion in fall 2026), Bowman Court sewer pump station (summer 2026), Bethlehem water tank (fall 2026), Three Forks Church Road waterline extension project (fall 2026), 16 West Main Avenue Downtown Revitalization Project (summer 2026), Bethlehem booster station (spring 2027), Sterling Road Neighborhood Revitalization Project (summer 2027), and EMS Station 2 expansion (spring/summer 2027).
A potential future project includes renovations to East Alexander Park. “It is the largest park in Alexander County and needs significant attention,” said Mundy. “It would be a large investment, but I believe it would provide great opportunities and serve our citizens well.”
Commissioner Pennell encouraged other commissioners to consider a larger property tax rate decrease. For a $200,000 home, he determined the savings would only be approximately $40 a year. “Our citizens are demanding tax rate cuts, but it needs to be something meaningful,” said Pennell.
A public hearing on the budget will be held at the regular meeting on June 1.
In other business:
• Commissioners honored the 2025-2026 Alexander Central High School Lady Cougars basketball team. This past season, the team finished 25-4 and advanced to the NCHSAA 6A state final four, where they faced eventual state champion Northern Guilford High School. The head coach is Jon Presnell, who also serves as Alexander County’s Recreation Director. The season marked the deepest playoff run in Alexander Central girls’ basketball program history.
• Commissioners approved the closeout of the Paragon Films Community Development Block Grant (CDBG) Rail Infrastructure Project. Kyle Case, Community & Economic Development Manager for the Western Piedmont Council of Governments (WPCOG), said the project resulted in the construction of 763 linear feet of rail spur to serve Paragon Films in the Alexander Industrial Park. CDBG funds covered 54.41 percent of the project, with the remainder funded by a grant from the North Carolina Railroad Company. As a result of the project, Paragon created 19 new jobs, including 11 for low- and moderate-income households.
• The board approved the consent agenda as presented: minutes from the April 28 budget work session, board/committee appointments for the Juvenile Crime Prevention Council, JCPC Annual County Plan & Certification for FY 2026-2027, renewal of agreement with Correctional Behavioral Health for inmate behavioral care services, and agreement with Corrections Medical Claim Reduction for off-site inmate medical bills cost containment services.
The next meeting of the Alexander County Board of Commissioners is set for Monday, June 1, at 6:00 p.m. at the CVCC Alexander Center for Education (room #103). Regular meetings are recorded and can be viewed on the county’s Government Channel on Spectrum channel 192 or the county’s YouTube channel at www.youtube.com/alexandercountync. Meeting agendas, minutes, videos, and additional information are available on the county’s website at https://alexandercountync.gov/commissioners.