The Alexander County Board of Commissioners met on Tuesday, April 28, at 5:00 p.m. for a work session to discuss the fiscal year 2026–2027 budget.

Two fire departments presented requests for increases in their respective fire tax rates.

Scotty Abernathy, Chief of Stony Point Volunteer Fire Department, said the department’s board of directors is requesting a 1-cent increase due to the effects of inflation on equipment purchases. The increase would generate approximately $29,000 annually.

Donovan Howell, Chief of Ellendale Volunteer Fire Department, said his department’s board is requesting a 2.2-cent increase, also citing inflation and equipment needs. He said the department plans to build a secondary fire station to bring more residents within a five-mile response radius. The proposed increase would generate approximately $80,000 annually.

Jennifer Sigmon, Animal Services Director, presented her department’s budget requests. She said renovations are needed at the shelter, with an estimated cost of $50,000. Sigmon also requested funding to establish a spay/neuter clinic, noting increasing difficulty in securing veterinary services. Additional staffing requests include a part-time kennel technician and a full-time administrative assistant due to workload demands.

County Manager Justin Mundy presented a summary of changes since the April 20 work session, when approximately $8 million in fund balance was needed to balance the budget.

“Through the cuts discussed and aggressively budgeting revenues and expenditures based on historical data, we have cut approximately $2.1 million from appropriated fund balance in the original request,” Mundy said.

Commissioners expressed interest in lowering the property tax rate for the coming year. At the current rate of 65 cents per $100 valuation, Mundy said appropriated fund balance would be approximately $6 million. A 3-cent reduction in the tax rate would increase that amount to approximately $7.2 million.

Mundy said the county has historically relied on fund balance to balance the budget, but has only used a portion of the appropriated amount once in the past decade.

The proposed budget also includes a 2.5 percent cost-of-living adjustment (COLA) for county employees, a new 2 percent 401(k) match, and an internal salary study.

Mundy said Alexander County Schools requested an additional $348,321, bringing the total request from the county to $8.42 million for FY 2026–2027. The board will provide an opportunity for Superintendent Dr. Bill Griffin to speak at the next meeting.

Commissioners will hold their next regular meeting on Tuesday, May 12. The budget will be formally presented on May 18, with a public hearing scheduled for June 1. All meetings will be held at 6:00 p.m. at the CVCC Alexander Center for Education (room #103).

The Alexander County Board of Commissioners held a budget work session on Monday, April 20, to review preliminary projections and priorities for the Fiscal Year 2026-2027 budget. County Manager Justin Mundy led the discussion as commissioners examined revenues, expenditures, and capital needs ahead of a formal budget presentation in May.

The requested FY 2026-2027 expenditures total $64,245,518, with proposed revenues of $56,190,479, and an $8,055,039 fund balance appropriation to balance the budget. Mundy said fund balance is traditionally used to balance the budget, but is rarely spent. The county has a current available fund balance of $26.5 million.

Early projections show the County’s overall revenues are expected to remain relatively flat compared to the current fiscal year. Mundy said HR 1, federal legislation also known as the “One Big Beautiful Bill Act,” will cause a decrease in revenues totaling approximately $1 million. An additional $300,000 decrease is projected in other federal and state grants. Building permit revenues are also expected to be $125,000 less than FY 2025-2026.

Mundy said growth is expected in several local revenue streams, including a $746,000 increase in property tax revenues (at the current rate of 65 cents per $100 valuation), an $800,000 increase in sales tax revenues, and a $500,000 increase in EMS revenues.

“We’re projecting some positive growth locally, but much of that is being offset by reductions in outside funding,” said Mundy. “Our focus is on maintaining county services, supporting our employees, and continuing to invest in infrastructure.”

Commissioners discussed the County’s current property tax rate and expressed a desire to reduce it as part of the upcoming budget; however, no specific adjustment has been determined at this point in the budget process.

On the expenditure side, the proposed budget is driven largely by personnel costs and capital outlay requests. Mundy recommends a 2.5 percent cost-of-living adjustment (COLA) for all county employees as part of an effort to maintain competitive pay and support employee retention. Several departments have also requested additional salary increases, particularly in public safety and service areas facing recruitment and retention challenges.

New personnel requests total approximately $359,000 for six positions. Mundy proposed that the County implement a 2 percent match to employee 401(k) contributions, which could be funded initially through insurance savings. He said a salary study is in progress, with results expected in the next few weeks.

Capital outlay requests for FY 2026-2027 total approximately $2.65 million. Notable items include a courthouse chiller replacement, an emergency management warehouse, a new ambulance, and additional vehicles for several departments.

Commissioners also reviewed a proposed increase of $348,321 in funding for Alexander County Schools. The request includes support for school nurses, pre-kindergarten funding, a media and innovation coordinator position, and locally funded salary increases. The amount requested from the county totals $8.42 million for FY 2026-2027.

“Our goal is to be good stewards of taxpayer dollars while continuing to invest in the services and infrastructure that keep Alexander County moving forward,” said Chairman Larry Yoder. “This is an excellent start to the budget process for the coming year. I appreciate our County Manager’s hard work.”

The work session also included a discussion of ongoing and future infrastructure investments. Current projects include two water line expansions, Bowman Court lift station, Bethlehem water tank, Bethlehem booster station, EMS Station #2 expansion, and 16 West Main Avenue renovation. Mundy said the East Alexander Park renovation is potentially the largest upcoming project, and the county will seek grants to assist with funding.

Mundy has been in contact with the North Carolina Association of County Commissioners (NCACC) about developing a comprehensive Capital Improvement Plan (CIP) to help plan for future facility needs. He is requesting $100,000 in the budget to begin the CIP process.

For the solid waste fund, the minimum landfill fee is proposed to increase to $10 a visit. There is also a pass-through 4.7 percent tipping fee increase proposed, which would bring the construction and demolition fee to $62.82 a ton and household, commercial, and industrial waste fee to $73.29 a ton.

The proposed budget for the water and sewer fund totals $4.45 million, which includes preliminary cost estimates for purchasing sewer capacity and water meter upgrades from the City of Hickory. The proposed water and sewer budget also includes a lift station upgrade at Wittenburg Access Area and a water line replacement.

A second budget work session is scheduled for Tuesday, April 28, at 5:00 p.m. in the administration conference room.

Commissioners voted to move the May 4th regular meeting to Tuesday, May 12, at 6:00 p.m. at the CVCC Alexander Center for Education (room #103).