The Asheville City Council recently embarked on the challenging task of planning the city’s budget for the upcoming fiscal year. During a work session held before their official meeting, city officials revealed a projected $30 million shortfall for the fiscal year 2026-27 between anticipated revenues and expenses.
Lindsay Spangler, who manages Asheville’s budget and performance, highlighted that the $30 million gap is an early estimate. However, she noted that several factors are likely to drive city expenses higher.
The primary contributor to rising costs is the debt associated with $80 million in bonds approved by Asheville voters in 2024 for various projects like parks, affordable housing, transportation, and public safety. Although the city enacted an 8% property tax increase this year to boost staff salaries and maintain essential services, Spangler mentioned that a more significant hike was postponed due to Hurricane Helene. She projected a necessary increase of 2.58 cents per $100 of assessed value, translating to a 5.8% rise over the current rate of 44.19 cents per $100.
Additional financial burdens include approximately $5.5 million for increased employee healthcare costs, $3 million more for bus services, and $1.8 million for security at community centers. Furthermore, strategies used to balance the previous budget, like a $5 million loan from the Federal Emergency Management Agency and tapping into $2.6 million of reserves, are not viable options this time around.
Spangler also pointed out that the $30 million figure does not account for potential new expenses, such as cost-of-living adjustments for city employees or an additional shift for the Asheville Fire Department, which Council had previously supported. Even to sustain current service levels, higher property taxes and fees may be necessary.
Council member Maggie Ullman described this year’s budget as the toughest she has faced since joining in 2022. She acknowledged the financial struggles of Asheville residents and promised to minimize the impact of any tax increases.
“The idea of putting this all on the backs of every citizen, I just can’t imagine we’re going to do that. We know this would be so hard for our public to absorb,” Ullman said. “Just as everyone out there is really struggling with groceries and cost of living and inflation, and it’s hurting all of our wallets, we’re seeing it reflected in the city budget as well.”
The Council is scheduled to hold its first public comment session on the budget on Tuesday, Feb. 10. A formal public hearing is set for May 26, followed by the budget adoption vote on June 9.
Other Developments
- After previous delays, the lease for a new West Asheville base of the Asheville Police Department was approved. Despite concerns from residents and business owners about public safety, Chief Jackie Stepp assured that policing levels on Haywood Road would remain unchanged. Kim Roney opposed the lease, citing budget transparency issues and lack of community engagement.
- The Council agreed to two partnerships with the N.C. Department of Transportation to enhance biking and walking infrastructure. The city will invest $2.09 million in a bike/pedestrian bridge across the French Broad River, and $2.98 million for a multiuse path on Deaverview Road. Construction for these projects is expected in 2028 and 2031, with federal funds covering the remaining $20.26 million.
- During the budget session, the Council received an update on plans for renovating French Broad River Park and Azalea Park. D. Tyrell McGirt, parks and recreation director, emphasized the need for broader community feedback on the park designs, especially from underrepresented groups.
- Fairview’s T.P. Howard’s Plumbing was awarded an approximate $8.95 million contract to install new water lines, replacing older systems to meet future demands.
- Asheville entered a nearly $100,000 contract with Kittelson & Associates to revise the city’s traffic calming policy, which has been criticized for long project timelines.
- The Council approved a change to the development ordinance following a new state law that removes the one-year waiting period for developers to resubmit plans after withdrawal or denial.
Regular meetings of the Asheville City Council occur every second and fourth Tuesday at 5 p.m. in the Council Chamber at City Hall, 70 Court Plaza. However, the next meeting on Tuesday, Jan. 27, will start at 10 a.m. to accommodate participation in the annual Point-in-Time Count of the local homeless population. For the full recording and documents from the Jan. 13 meeting, visit the official website.
