County manager also presents $17.7 million spending plan as DSS director honored on his way out

By Miles Layton

GATESVILLE — Gates County residents could face higher property taxes along with rising water, sewer and solid waste fees under a proposed $17.7 million budget presented Wednesday night during the Gates County Board of Commissioners’ regular meeting.

County Manager Scott Sauer outlined the fiscal year 2026-27 spending plan, which recommends an ad valorem tax rate of 70 cents per $100 of assessed property value — an increase of three cents from the current rate of 67 cents. Sauer told commissioners the increase amounts to the equivalent of three pennies on the tax rate, driven by employee benefit costs and a proposed cost-of-living raise for county staff.

“At the direction of the Board of Commissioners, the proposed FY 2026-2027 budget includes a five percent cost-of-living adjustment for all employees,” Sauer said, noting that just holding onto existing benefits — including rising health insurance and retirement costs — would require the equivalent of one additional penny in new revenue. The 5% cost-of-living adjustment requires two additional pennies on top of that.

The proposed general fund budget of $17,744,478 represents a 4.3% increase over the current year’s revised budget. Public safety remains the county’s largest spending category at more than $5.3 million, followed by general government at $3.6 million and education at just over $3 million. A public hearing on the budget is scheduled for June 17 at 6 p.m.

Worth noting, Wednesday’s meeting was nearly three hours long, so if I missed something, please forgive me.

And yes, that’s a picture of the water tower — water rates are poised to increase.

Subscribe — it’s free!

Utility rate hikes proposed

Utility customers would see significant fee increases if the proposal is adopted. The county’s water base monthly charge for the first 1,000 gallons would rise from $14.50 to $19, with usage rates also climbing. A household using 7,000 gallons per month — roughly the national average for a four-person household — would pay approximately $55.75 under the new structure, compared to $44.50 currently, a 24.7% increase.

Sauer said those figures still fall below several neighboring counties. Camden charges $62.90 for the same consumption level, Perquimans $71.50, Hertford County $65, and Pasquotank $62. Chowan County sits closest at $49.

The county is also proposing a monthly sewer base charge of $38 for the first 1,000 gallons with additional usage billed at $12 per 1,000 gallons. Sauer said the rate increases follow recommendations from an asset management and rate study funded through the North Carolina Department of Environmental Quality.

The solid waste fee would rise $20 annually, bringing the household charge to $260 per year. Sauer attributed the increase to ongoing financial losses in the landfill fund.

“You can live your entire life without love,” Sauer said during the water rate discussion, “but you can only live for about three days without water.”

Commissioner Dave Forsythe voiced support for the annual rate adjustment approach, saying it is the kind of discipline that prevents systems from falling into distress. “That’s how we get to disadvantaged status — when we don’t pay to keep the systems up,” he said. He also raised the question of whether the rate study had factored in future operational costs should the county move forward with fluoride treatment, a process currently under pilot testing.

The county made notable progress on water system management, commissioners noted. Water loss — which stood near 60% when the topic first came before the board several years ago — has dropped to approximately 6%. 

“Six is phenomenal,” said Board Chair Emily Truman. Commissioner Jonathan Craddock recalled the earlier discussion that led to the purchase of new water meters: “I said, we can’t afford not to.”

Education funding remains unsettled

Education funding continued to be a point of contention. The budget recommends level funding of $2.953 million for school current expenses while reducing capital outlay from $320,000 this year to $100,000. A one-time $130,000 contribution to the school nutrition program included in the current budget would not be renewed, as commissioners said it was tied to a local sales tax referendum that failed in March with 75% of voters opposed.

Sauer also disclosed that the school system is projected to finish the current fiscal year with an operating deficit of roughly $430,000 to $438,000 in its general fund — a pattern commissioners said they had been working to address for more than a year. The Board of Education was granted an extension to submit its full budget request until June 1, and a joint meeting of the two boards is scheduled for that date.

Sauer noted the county had already provided an $828,000 one-time appropriation in 2023 to replenish the school system’s general fund reserves after they fell into deficit. “I just have to say it — we don’t want to find ourselves where we were in 2023,” he told commissioners. Forsyth was careful to acknowledge the school board’s efforts: “Those folks are really putting in hours,” he said. “The public should realize that.”

Data center moratorium update

Commissioners reviewed the status of a moratorium on data center development adopted in December 2024. Truman told the public the pause was deliberate and purposeful.

“The reason there is this pause is so that we can make sure we get it right for you all,” she said, pushing back on social media speculation that the board was doing nothing. “We are taking this year to do research and to learn what we can — and also to make sure there’s no area for loopholes, no areas that they can slip in on the back end.”

Planning officials confirmed a land use ordinance is being drafted, with public workshops expected to begin once the county enters the new fiscal year. Forsyth pressed for a clear sequence, saying public input should come before a draft ordinance reaches the commission. “I don’t think we should get a draft to us and then have the public engage,” he said. Truman agreed: “Town hall-type situations are in the plans once we get past the budget process.”

DSS director honored

Before the budget discussion, commissioners paused to recognize outgoing Department of Social Services Director Willie Smith, who is leaving for a position with New Hanover County after five years in Gates County.

Commissioner Brian Rountree offered an extended tribute, describing Smith as someone he had worked alongside on multiple boards. “He’s a man of valor. He’s a man of excellence,” Roundtree said. “I had to be honest because I knew what was going to happen — we were going to lose him. And our pockets aren’t that deep.”

Smith, who said he prefers not to be praised publicly, thanked the board and his staff before announcing that DSS is pivoting its planned June 29 community farmers market to a “farmer spotlight” event. The change came after produce sellers could not commit to the original date due to harvest uncertainty. DSS will now accept farmer sign-ups on a rolling basis, with vouchers of $10 to $20 available to FNS and Medicaid recipients who preregister. Funding for the vouchers was provided through grants from Trillium and Blue Cross Blue Shield.

Other business

Trillium Health Resources Regional Vice President Bobbie Lowe presented the organization’s annual report, noting that Gates County is served by 187 individuals through the public behavioral health plan. She also flagged that Smith’s seat on the regional advisory board would need to be filled. A new behavioral health hospital in Greenville — a partnership between ECU and Arcadia with an eventual capacity of 144 beds — is now open and accepting voluntary and involuntary patients, Lowe said.

Jessica Gibbs of the North Carolina Department of Insurance gave an overview of the agency’s services, including insurance fraud prosecution, a lost life insurance policy search program, and a free Medicare counseling program for seniors called SHIP.

Sheriff Ray Campbell told commissioners his office has averaged more than 600 calls per month over the last two months, compared to the typical range of 400 to 500. Despite losing a deputy last week, he said a replacement with three years of experience has already been recruited and will be sworn in June 1.

Following a closed session lasting nearly an hour, commissioners voted unanimously to extend County Manager Sauer’s contract by two years, with an optional third year subject to a board vote at that time.

County offices will be closed Monday, May 25 in observance of Memorial Day.