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GATESVILLE – After multiple work sessions, the Gates County Board of Commissioners have approved the FY 2025-26 budget.

The $17,005,910 General Fund budget was revised from earlier proposals, the most significant of which were increasing the ad valorem property tax rate to 67 cents (per $100 of value) and giving the county’s employees a three percent cost of living adjustment.

The county’s current property tax rate, which has been in place since FY 2022-23, is 84 cents. However, with 2025 being a property revaluation year in Gates County, which occurs every eight years, property values rose, which typically translates into a reduction in the tax rate.

At his original budget presentation on June 2, Gates County Manager Scott Sauer, following the lead of the commissioners, set the new tax rate at 66 cents. But there were discussions at that same meeting about a lack of a cost of living increase for county workers.

After an ensuring work session by the commissioners, several items in the first draft of the budget were changed. Funding for upgrading the computer labs in the school system was reduced from $140,000 to $120,000. Two line items on the original budget were totally removed: $150,000 in Exceptional Children funding from the school system and $100,000 that was set aside for the GEMS/GITS relocation.

The commissioners opted to allow the $130,000 to remain for the school system’s nutritional meals program.

They also added the cost of living raise, which helped to add a penny to the tax rate.

As for the new budget, Public Safety will receive the highest amount ($4,968,386) of taxpayer money. Within that department are the Sheriff’s Office ($1,792,245), Recue Squad / EMS ($1,091,478), Telecommunications ($862,760), Emergency Management ($474,001), Jail ($305,000), Animal Control ($184,484), Building Inspector ($129,820), and Fire Protection ($106,898).

Education ($3,410,000) receives the second highest share of county funds. The majority of that money ($2,953,000) is for the current expenditures of Gates County Public Schools. Capital outlay for the public schools is $320,000 during FY 2025-26.

Other departments receiving taxpayer money are General Government ($3,064,683), Human Services ($2,545,459), Economic Development ($788,146), and Culture & Recreation ($548,725).

The county commits $532,590 to make its debt service payments and transfers a total of $1,147,921 to School Capital Reserve and the Revaluation Reserve.

Taxpayer dollars are the number one source of revenue to build the FY 2025-26 budget. Property taxes top the list at $9,058,102. State sales tax revenue returned to Gates County is projected at $3,712,105.

In his financial proposal, Sauer significantly lowered the amount of fund balance needed to balance the bottom line. He projects to use $317,463 of that fund to balance the 2025-26 budget, which is nearly 70 percent less than the $1,028,584 appropriated from fund balance during the current fiscal year. Of that amount, $167,113 is for Emergency Management projects and equipment replacement.

Other top sources of revenue are federal and state grants ($1,527,018), interest income ($445,983), and permits/fees ($225,772).

Gates County Finance Director Roberson said if the county’s departments hold the line on their budgeted expenditures and if revenues are greater than expected, then that may either completely offset the use of the appropriated fund balance or possibly add money back to the fund balance at the end of the fiscal year.

On a motion by Commissioner Nathan Berryman and a second from board vice chair Jonathan Craddock, the FY 2025-26 budget was approved by unanimous vote.

The new budget became effective on July 1.