In the midst of financial challenges, the City of Asheville is actively working to manage a significant budget shortfall. Initially faced with a $30 million budget gap, efforts have reduced it to $14.2 million. This progress stems from increased property tax revenue estimates, a favorable transit contract, and higher utility fees.
Recently, city officials have put forward additional strategies aimed at further shrinking this gap by $6.9 million. These measures, pending approval from the City Council, include trimming vacant roles, scaling back on certain employee benefits, and halting funding for various community initiatives.
Potential Budget Reductions
The proposed reductions encompass several key areas. City staff suggest suspending contributions to the Housing Trust Fund, the Public Art Maintenance Fund, and the AVL Arts Grant Program. Additional cuts involve reducing the hours and security at community centers, eliminating a portion of the 401K match for city employees, and cutting back on litter cleanup and landscaping services. Furthermore, the city plans to eliminate non-essential staff vacancies and reduce budgets for staff training, supplies, and software.
City Council member Sage Turner expressed concern during a budget session, describing the cuts as “somewhat of a slaughtering of community services.” In response, Mayor Manheimer remarked, “I think you just gave every journalist their favorite line to use.”
According to Lindsay Spangler, the city’s Budget and Performance Manager, these measures could reduce the budget deficit to approximately $7 million.
Factors Increasing Expenditures
Despite the proposed savings, Asheville faces several unavoidable expenses. This year’s budget includes $6.5 million in debt service for General Obligation bonds, $5.1 million for rising health care and retirement costs for city employees, and $3.75 million allocated for staff pay raises. Additionally, the city plans to allocate $1.8 million to fill long-vacant positions within the police department and another $1.8 million for community center security.
Additional Expenditures Under Consideration
Beyond the current budget, the city is deliberating an extra $7.5 million in expenditures. This includes creating two new positions to oversee General Obligation bond projects, namely an Affordable Housing Bond Manager and a Capital Program Manager for Public Works. Moreover, there are plans to hire 16 new firefighters.
While BPR has sought further details on these funding requests through a records request, this information was not available at the time of publication.
For more insights into how Asheville allocates its annual budget, read our budget primer.
Stay Updated with The Asheville Explainer
