IFN Staff
Iredell County commissioners will face some difficult decisions in the coming months as they weigh competing needs during a tight budget season.
During an all-day retreat designed to help the finance team craft the county’s budget for 2026-207, commissioners learned that property tax revenues are projected to grow by about 3 percent and sales tax revenues by 2 percent.
As a result, the county will have about $8.7 million in additional revenue.
But, as the board learned during a day of presentations from senior managers, the bulk of that money is largely spoken for.
Based on the district’s education funding formula, Iredell-Statesville Schools, the Mooresville Graded School District and Mitchell Community College will receive a total funding increase of $4.3 million for operating expenses.
Faced with a jump in medical coverage and prescription costs, the county is also looking at 13 to 15 percent increase in healthcare premiums, which will cost the county an additional $1.8 million.
That doesn’t leave much money for the more than two dozen new positions requested by department heads or unbudgeted capital projects.
With the guidance provided by commissioners, County Manager Beth Milton said she was confident that the finance team could put together a budget based on maintaining the county’s property tax rate of 50 cents per $100 valuation.
“This one is going to hurt a little bit, but we’ll get you there,” Milton told the commissioners. “We will give you options, but there’s not a lot of extra money to make everybody happy.”
Fortunately, the county has $114 million in its undesignated fund balance, which could be used to cover this year’s shortfall in healthcare costs and accelerate high-priority capital projects.
Employees First
Commissioners continued their commitment to making the county’s 1,200-plus employees a priority.
Faced with an increase of nearly $2,500 per employee in healthcare costs, commissioners were in universal agreement that they would not pass on the cost to employees.
“I think we’ve got to take care of them so they can keep taking care of their families,” Commissioner Brad Stroud said.
The industry average for increases in the coming year is about 10 percent. The county’s costs are projected to rise at a higher rate because of inflation and about a dozen expensive claims related to chronic and life-threatening health conditions. About 40 employees rely on specialty medications that cost the county about $2 million annually.
Commissioners also rejected the idea of reducing benefits to reduce the increased expense.
“I don’t want us to punish them (the employees) because of the market,” Commissioner Gene Houpe said.
Education Funding
Funding for I-SS, MGSD and Mitchell Community College will again account for the largest category of spending in 2026-2027.
School allocations accounted for 37.9 percent of General Fund expenditures in the 2025-2026 budget. In addition to contributing to the entities’ operations budgets, the county is responsible for the education entities’ capital expenses. In addition to financing $120 million in debt for the new Weathers Creek High School, commissioners have set aside $10 million for that project, while committing to pay $52 million for the new Parkertown Elementary School without borrowing money. Commissioners have also saved about $10 million for Mitchell’s public safety center to go with another $10 million in bond financing.
Commissioners have not set aside money for athletics facilities for Weathers Creek High and want I-SS officials to reconsider the possibility of making the new school an early college in partnership with Mitchell and MGSD. Under that scenario, students at the new high school could play athletics at their home school until the county saves money for athletics facilities.
The recent altercation between I-SS Board Chair Kevin Angell, who subsequently resigned, and school board member Mike Kubiniec did little to help the commissioners’ views of I-SS. Commissioners have blamed I-SS for dragging its feet on the Weathers Creek design and construction, which resulted in the price increasing by an estimated $40 million.
“I-SS needs to stop being a bunch of damn clowns,” Chairman Bert Connolly said during the commissioners’ discussion of school funding. “They’ve got to get serious and do the business of the people of this county.
“They need to get it together and act like adults,” he added.
New Positions
Commissioners did not commit to providing funding for any of the 27 new full-time positions requested by various department heads. Among those requests are six new emergency medical technicians for the Emergency Medical Services, four new employees for the Iredell County Detention Center, and 13 new positions in the Sheriff’s Office, including four new Lake Patrol deputies.
Funding all of the positions would cost approximately $2.2 million.
Maintenance Projects
Various department heads have asked for $311,000 for smaller maintenance projects, including $95,000 for new carpet for tax administration, $33,000 for asbestos abatement in the courthouse and $26,000 for new curbing at Stumpy Creek Park.
Major Capital Projects
Commissioners gave approval to fund design work for a 1,500-square-foot expansion for the Elections Office, which includes the addition of a training room, new restrooms and two offices. Construction, which is expected to cost about $1 million, could begin as soon as December.
Another significant project that commissioners appeared to support is the continued renovation of Government Center South in Mooresville. Renovating the remaining office space and window replacement would cost about $875,000. The space would be used for the Health Department and Department of Social Services staff.
Smaller requests included setting aside $500,000 for the eventual replacement of the turf fields at Jennings Park, $120,000 for ballfield improvements at Stumpy Creek, and $145,000 for a new roof for the Recreation Center.
Projects that were pushed to the back burner include expansion of the Public Safety Center and construction of a new Health Department.