Asheville City Council is facing a potential budget shortfall of approximately $3.4 million for the next fiscal year unless property taxes are increased. During a recent budget work session, city budget and performance manager Lindsay Spangler outlined the revenue projections for fiscal year 2026-27.
The most significant contributor to this shortfall is a $5.6 million decrease in one-time revenue, primarily from a federal disaster loan acquired earlier. According to Spangler, sales taxes are expected to remain stable and won’t compensate for this loss, nor will the minor growth in property taxes from new construction.
“Looking at what you’re seeing across the whole state, it’s a similar, not great outlook,” Spangler noted, adding that the city is still financially recovering from the impacts of Helene and experiencing reduced tourist numbers.
Additionally, Spangler addressed the anticipated increase in service fees for Asheville residents, including a 7.5% rise in water and stormwater fees and an 11% hike in trash collection charges. These adjustments are projected to cost the average household an extra $67.14 annually, with further increases likely as the city tackles significant capital improvement projects.
The next budget work session is scheduled for 2 p.m. on Tuesday, March 24, focusing on city expenditures and potential cost-saving measures while also updating on the revenue-expenditure gap.
Council Approves New Housing Units
In housing developments, the Council has given the green light for rezoning two apartment complexes, adding 269 units to Asheville’s housing inventory. One project will introduce 180 market-rate apartments on Sardis Road, while the other will provide 89 affordable units in the Emma neighborhood.
The rezoning votes were unanimous, with notable support for the Emma project. Vice Mayor Antanette Mosley expressed enthusiasm, stating, “I love this project — this is the perfect anti-displacement project.” Council member Sage Turner highlighted the inclusion of family-friendly units, with ten affordable for those earning as low as 30% of the area median income, or $32,150 for a family of four.
Andrea Golden, director of PODER Emma, voiced community support for the development during a public hearing, mentioning the potential for future land-use tools to preserve neighborhood character despite changes.
Additional Updates
- Bridget Herring, Asheville’s recovery coordinator, reported on progress in Helene-related projects, highlighting a reallocation of over $2.1 million in federal funding to develop “resilience hubs.” This shift will slightly cut budgets for Azalea Park and the French Broad riverfront parks. Residents are encouraged to participate in an online survey and attend a “Day of Listening” on April 18.
- Asheville has secured a $10 million loan from the N.C. Department of Environmental Quality for improvements at the North Fork Water Treatment Plant, including a permanent filtration system. The loan is interest-free, with potential forgiveness of up to $3 million.
- The city rescinded a more than $1 million loan from its Housing Trust Fund to Reasonable Development, which had not complied with city policy regarding the sale of affordable homes in West Asheville.
- The Council approved a $700,000 federal grant application for the Asheville Police Department to establish a “Crime Gun Intelligence Center,” aiming to expedite gunshot residue detection. Interim Police Chief Jackie Stepp emphasized the technology’s potential to significantly reduce detection times.
- Furthermore, a $606,000 contract was approved with Global Public Safety to outfit 45 new police vehicles with lights and emergency equipment, addressing a shortfall in the department’s fleet.
Asheville City Council meets on the second and fourth Tuesday of every month at City Hall. The upcoming meeting is on March 24. For more details, access the full recording and meeting documents from March 10.
