Gastonia City Council Meeting – June 6, 2023

The Gastonia City Council met at 6:00 PM on June 6, 2023, in City Hall. The agenda included approval of the FY 2024 budget, a revenue bond resolution for the Southeast Water/Sewer Project, a consent agenda, committee reports, and a Pride Month proclamation that was added and approved after a divided council debate.

Opening, Agenda, and Minutes

• The meeting opened with an invocation by Councilwoman Jennifer Stepp and the Pledge of Allegiance led by Mayor Walker E. Reid III.
• The agenda was amended to add Item E4, a proclamation recognizing June 2023 as Pride Month, after a debate in which one council member said it conflicted with proclamation guidelines and another said denying it would be discriminatory.
• The May 16, 2023 regular City Council minutes were approved.

Awards, Ceremonies & Promotions

• A Certificate of Recognition was presented to Corretta McLean, owner of Your Christian Book Store, for 28 years of service to Gastonia.
• A proclamation recognizing May 15 – June 15, 2023 as Tourette Syndrome Awareness Month was approved. It noted the disorder affects 1 in 50 children and more than 45,880 school children in North Carolina.
• A proclamation recognizing June 19, 2023 as Juneteenth was approved and presented to Tasha White, chair of the Gastonia EbonyFest Juneteenth Celebration Committee. The proclamation highlighted local celebrations from June 17-19.
• The council approved the Pride Month proclamation after debate. Council discussion included criticism that it was politically divisive and did not meet proclamation guidelines, while supporters said rejecting it would discriminate against LGBTQ residents and that a similar proclamation had passed unanimously in 2018.

Consent Calendar

The consent agenda was approved, with an amendment to H14 changing the Social District cup description to 'maximum 16 ounce cup' for consistency. Notable consent items included:

• $240,000 in hotel occupancy tax revenue for the Gastonia Tourism Development Authority.
• $340,000 from General Fund balance for the Garland Business Center roof replacement.
• An agreement for right-of-way acquisition for the Derry development and approval of the Kendrick Farms final recording plat.
• Authorization for the Gastonia Police Department to help enforce the Unified Development Ordinance, primarily for illegal sign placement in rights-of-way.
• A $733,497 contract for park shelters and restrooms at Linwood Springs Park and T. Jeffers Center using CDBG-CV and ARPA funds.
• Approvals related to HUD FY2023 Annual Action Plan, $65,000 Continuum of Care funding for HealthNet Gaston, and purchases including 15.5 circuit breakers ($145,734), diesel generators ($166,490), three Sprinter high-top cargo vans ($152,088), and one knuckleboom crane truck ($197,890.48).

Public Comments & Testimony

• Because 18 people signed up, the mayor allocated 30 minutes for public expression and asked speakers to limit remarks to two minutes instead of the usual five.
• Several residents supported the Pride Month proclamation, including a gay Gastonia resident who applauded the council and criticized a council member's social media post, a multiracial resident who said she was tired of discrimination, a resident who described being assaulted after being called an anti-gay slur, and another who said the proclamation would help attract businesses and workers.
• Several residents opposed the Pride Month proclamation, saying it was divisive, promoted a lifestyle they did not condone, or should have been put to voters. One speaker said he was 'ashamed' of the council; another said 'pride for anything anywhere divides.'
• Many residents urged the council to vote no on the FY 2024 budget. They cited the burden of the property revaluation on seniors and fixed-income households, possible home sales, 'wish list' spending by departments, the $425,000 purchase of the Marietta Street property, city-owned parcels, and grants or events they considered wasteful.
• One budget opponent asked for a roll call vote. Another speaker, Miss Gastonia's Teen Ava Sacaris, did not address the budget or proclamation; she described her community service initiative 'Baseline' and fundraising of almost $3,000 for health-related nonprofits.

Regular Agenda: FY 2024 Annual Budget

• City Manager Michael C. Peoples presented the proposed FY 2024 budget as a $296,760,000 total citywide budget, developed since December 2022.
• The budget set a city property tax rate of 47 cents per $100 valuation, down from 52 cents and the lowest rate since 2000. It did not increase water, sewer, electric, solid waste, or stormwater fees.
• Council debate reflected concern for residents facing higher tax bills after the county revaluation, but also concern about maintaining services, public safety, staff pay, and the city's bond rating. Several council members said the budget was not perfect but represented the best result after months of cuts. The mayor noted that 72% of the budget is compensation and only about $13 million remained available for cuts, and he said the convention center is funded by hotel occupancy taxes rather than property taxes.
• The budget was approved on a divided vote, with the mayor noting it as 4 in favor and 2 opposed.

Regular Agenda: Consolidated Fee Schedule

• The council approved the FY 2024 Consolidated Fee Schedule with an administrative correction on page 26: large general service electric rates were populated as a $150 facility charge, $13 all-demand charge, and $0.06052 per kilowatt-hour, matching the existing fee schedule with no increase.

Regular Agenda: Southeast Water/Sewer Revenue Bonds

• The council unanimously approved a resolution to apply to the Local Government Commission to sell revenue bonds in an amount not to exceed $50 million for Phase 2 of the Southeast Water/Sewer Project.
• Financial Services Director Crystal Certain said the revenue bonds would be repaid by water and sewer ratepayers and system development fees, not property taxes.
• Staff said Phase 2 would extend service across New Hope Road and open about five square miles, potentially serving up to 18,000 new homes. Bids opened the same day came in about $10 million under estimate, reducing projected construction costs to roughly $40 million.
• The bonds would have two years of interest-only payments, with principal payments beginning in the third year.

Committee Reports

• The Recreation Advisory Commission recommended, and the council unanimously approved, recognition for Nate Hensley at the Martha Rivers Park press box. The committee vote was 5-0. Hensley, who died in 2013, was an early scorekeeper and received the Gaston County Sports Hall of Fame 'For the Love of the Game' Award in 2021.
• The Awards, Ceremonies & Promotions Committee discussed updating the city's proclamation guidelines; Councilman Jim Gallagher said the issue should be discussed further at a future work session.

Staff and Council Reports

• City Attorney L. Ashley Smith said a court hearing on the property at 418 North Oakland Street was continued to August to allow the owner more time to bring it into compliance.
• City Manager Peoples said staff would hold seven employee meetings about the budget and an employee survey, and that the city was monitoring the North Carolina General Assembly budget process.
• Council reports included the SHIELD capital campaign for a dinosaur exhibit, traffic light requests near Laurel Lane, the Highland Community Art Park event, and a traffic circle community meeting at Hunter Huss High School.

Key Outcomes

• Agenda amended and adopted; May 16 minutes approved.
• FY 2024 city budget approved, with the tax rate set at 47 cents.
• FY 2024 Consolidated Fee Schedule approved with corrected electric rate schedule.
• Revenue bond application for Southeast Water/Sewer Phase 2 approved unanimously.
• Pride Month, Juneteenth, and Tourette Syndrome Awareness Month proclamations approved.
• Nate Hensley press-box recognition approved unanimously.
• Proclamation guidelines discussion deferred to a future work session.
• Next regular City Council meeting scheduled for June 20, 2023, at the Gaston County Courthouse.