By Miles Layton

GATESVILLE — The Gates County Board of Education convened a special-called meeting Monday morning at Gatesville Elementary School, where board members reviewed the district’s year-end financial picture, approved a slate of field trips and fundraiser requests, and deferred a vote on a new athletic sponsorship proposal until their July 13 regular meeting.

Finance Officer Steven Harrell was center stage, discussing and answering questions about the district’s final budget summary for the 2025-26 school year. A Gates County boy, now a man, Harrell is going to Pitt County to work for the school system there. Congrats and good luck. 

Gates Schools’ Finance Officer Steven Harrell

A Year-End Budget That’s Tight but Intact

Harrell presented the year-end summary report to the board, offering a line-by-line look at spending across state, local, federal and special funds.

“Your state funds were all but penny spent,” Harrell told board members. “Our spending was at 99.52%. Our local expenditures were 95.23%. Federal grant funds were at 86.76%.”

Capital outlay finished at 97 percent, Harrell said, with $19,300.35 remaining. Child nutrition came in at 94.12 percent, and the local fund at 92.47 percent.

The federal figure prompted a question from board member Terri Riddick, who noted that federal fiscal years differ from the school district’s and asked whether the remaining funds would carry over.

“You have a lot of these grants for 27 months,” Harrell explained. “All of that money’s been — everything that we won’t send anything back, let’s put it that way.” He identified approximately $136,646 tied to EC program funds and Title One grants that would roll into next year.

The general fund balance drew particular concern. Harrell noted that about $100,000 of the remaining $156,983 came from a county property development consolidation fee — meaning the district’s true operational cushion was closer to $56,000.

“We’re above water,” Harrell said, “but it’s still way too close. We need to get to a point where we can put money back in the bank to build the fund balance up if we can.” He added a sobering warning: “You never know when you’re going to need a fund balance. One bad situation could wipe a fund balance out.”

Board member Danny Hale pressed on the point, noting that the district had already discussed the consolidation funds with county commissioners and was tracking that money separately. Harrell confirmed a transfer of $225,000 was forthcoming — he planned to have it delivered by Wednesday.

“I’ve already submitted the transfer form for that,” he said. “I don’t want to wait for that money. That money needs to be in place.”

Hale added that the district had already begun drawing from those consolidation funds for moving expenses as school consolidation work continues. Questions remain about what’s left once the project wraps up, likely around September.

“There are big costs,” Hale said. “300, 150 thousand is tied into city driveways. That’s a huge cost.”

Regarding fund balance targets, Byrum asked Harrell to clarify the state’s expectations. Harrell confirmed that North Carolina generally expects districts to maintain at least a month and a half of operating expenses in reserve — a benchmark Gates County is currently not meeting.

Daycare Account Closes; All Tuition Collected

Harrell also informed the board that the district’s daycare operation — which had operated under a loan arrangement for several years — would be closing its books this week.  

“The total expenditures for the year were $227,568,” he said. The accumulated loan balance over three years came to $203,862 — money that was never paid back before the daycare transitioned to private operation.

Board Vice President Sallie Ryan asked specifically whether any parents still owed tuition from the 2025-26 year.

“When we start next year with parents who want to send their children here with tuition, there are no parents who owe tuition from this 25-26 year?” she asked.

“Everything collected was collected,” Harrell confirmed.

Hale noted that auditors would record the daycare arrangement as a note in the financial statements. “Zero accounts payable, zero accounts receivable, no assets, no liabilities,” he said.

In other news, one of the more spirited exchanges of the morning involved a proposed athletic sponsorship arrangement for Gates County High School, submitted by Principal Jonathan Hayes. The item — which appeared twice on the consent agenda — raised questions about what such a corporate partnership would actually entail.

Board member Riddick said she wasn’t clear on the scope of the proposal. “It seems something new to me where we’re asking for a corporate sponsor of all our athletic programs,” she said. “I didn’t know what this was.”

Kristal Brooks, an assistant principal and long-time educator who spoke during the meeting, recalled a past partnership with Adidas. “Adidas sponsored us one year and on the front — it’s not big, but Adidas had, you know, it was known that we were through Adidas. So you would see the Adidas sign in the gym, different places.”

Hale moved to table the item, suggesting that Hayes and the athletic director come before the full board at the July 13 meeting to explain the proposal — and that the public have a chance to weigh in.

“Not just us as a board, but give the community the ability to acknowledge that also,” Hale said.

The motion to defer passed. The board noted that any shoe orders connected to the sponsorship had apparently already been placed and were unaffected by the delay.

Consent Agenda Approved

With the sponsorship item removed, the board approved the remainder of the consent agenda, which included:

• The Federal Programs Consolidation Application submitted by Curriculum Director Susan Casper
• A field trip request for FCA Leadership Training at Black Mountain, July 6-10, for Gates County High School students
• A lease agreement between the district and the Economic Improvement Council for space at T.S. Cooper School’s Head Start Program, running July 1, 2026 through June 30, 2027
• A Book Harvest donation request for elementary schools
• A field trip request for the FFA Officer Retreat to Kill Devil Hills, July 8-9
• A field trip request for the marching band to the Western Carolina Summer Symposium, July 5-10
• A spirit wear fundraiser request for the high school’s general fund

A brief discussion arose over whether a school nurse would need to accompany students on the in-state field trips, and whether that would involve salary costs. Board members agreed to verify the details before the trips take place, with the understanding that a nurse may be attending as a parent rather than as a paid employee.

The board also approved five budget amendments — two for state funds, one for local funds, and two reconciling the daycare’s year-end account.

Free Lunch Program May End; Board Urges Community Awareness

Board member Riddick raised a concern that drew broad agreement: Gates County Schools will likely return to an income-based free and reduced lunch application system next year, ending the universal free meal program that has been in place.

“That’s not the preferred thing for us to do, but with the county not being able to supply us the money to help, then that puts us back in there,” Riddick said.

Brooks, speaking from experience at Gates County High School, said the financial impact on school budgets can be significant. “That whatever isn’t paid comes out of our general fund here at school,” she said. “The high school takes a couple thousand dollars that we barely have.”

Board members discussed the need to proactively inform families about the application process for free and reduced meals. One suggestion was to include the application in every student’s back-to-school packet rather than making families come to the office to request one. “If you could send it with everybody, you’re not singling anybody out,” one board member said.

Brooks said she planned to address the issue at public comment during the July 13 meeting.

Looking Ahead: July 13 Meeting and a Planned Retreat

The board confirmed its next regular meeting for July 13 at Gatesville School. A work session with building principals and directors is also planned for 2 p.m. that afternoon.

A separate board retreat is tentatively scheduled for July 20 and will include professional development with district attorneys covering school board governance. The location had not been finalized as of Monday.

Following the open session, the board moved back into closed session to address the superintendent’s personnel recommendations, which had been recessed from an earlier closed session.

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