Amid a backdrop of tense discussions and a narrow voting margin, the Asheville City Council has finalized the budget for the 2026-27 fiscal year. The decision process, which included extensive public discourse followed by closed-door negotiations, displayed evident divisions among council members regarding the city’s financial strategies.
The approved budget totals approximately $275.6 million, with a property tax rate set at 37.69 cents per $100 of assessed value. This is marginally less than the 37.84 cents initially proposed by City Manager DK Wesley but remains 4.8 cents above the revenue-neutral rate, marking a 14.6% increase. More details on the initial proposal can be found here.
Despite the contentious nature of the budget talks, the majority of Asheville’s staffing, salaries, and services remained consistent with Wesley’s May 12 proposal. The main adjustment was a reinstatement of a 1% match for city employee retirement contributions, amounting to an estimated $530,000. This was backed by Mayor Esther Manheimer and council members Bo Hess, Sheneika Smith, and Maggie Ullman.
Amidst the discussions, Vice Mayor Antanette Mosley and Council member Sage Turner voiced the need for stricter fiscal oversight. Mosley advocated for a more “austere” budget, while Turner emphasized cost-cutting in light of projections indicating increasing budget deficits, potentially reaching over $36 million by fiscal 2030-31.
Turner also expressed dissatisfaction with the council’s communication during the budget process. “If this budget doesn’t move forward tonight, it’s because we haven’t communicated with each other enough, or something, to get to the same place to be able to direct you better,” she remarked to Wesley.
Council member Kim Roney opposed the budget, citing inadequate funding for key priorities. She advocated for city staff to receive a living wage, reversal of cuts to community center hours, and increased support for strategic partners within the nonprofit sector.
Ultimately, the budget approval seemed to emerge from a behind-the-scenes compromise. The council’s public debate reached a standstill, prompting Mayor Manheimer to call a recess, during which members met informally in smaller groups to avoid contravening North Carolina’s open meetings law. Upon reconvening, Bo Hess moved for the budget’s approval, and the motion passed.
This new budget will be implemented starting Wednesday, July 1. For those interested in the city’s budget process, previous presentations and videos are accessible online.
Other Developments
- The city evaluated reallocating $19.2 million of federal funds for single-family home repairs, part of a Hurricane Helene recovery grant. Only one out of eight speakers during the public hearing supported the reallocation, with most urging for more multifamily housing. The Helene Housing Recovery Board also advised against the reallocation. A council vote is scheduled for June 23.
- In a separate decision, the council authorized up to $9.5 million for a 126-unit affordable housing development in East Asheville, a project by Mountain Housing Opportunities. This measure passed with a 6-1 vote after addressing initial concerns raised during the May 12 meeting.
- Funding for the Eagle and Market Street Enhancements project received a boost with a $1.46 million budget amendment. The project, aiming to improve accessibility and aesthetics in the historically Black business district of The Block, is supported by a Mellon Foundation grant.
- A contract was approved for up to $319,000 to Colliers Engineering and Design for easement acquisition work related to the Coxe Avenue street improvements, slated to start in 2027. The project is funded by a mix of city, federal, and Buncombe County Tourism Development Authority contributions.
- The city’s Planning, Economic Development, and Environment Committee will consider a potential moratorium on data centers. If approved, the council could vote on the measure by June 23, following similar actions by other Western North Carolina governments, including the Eastern Band of Cherokee Indians and Swain County.
Asheville City Council holds regular meetings every second and fourth Tuesday at the Council Chamber on the second floor of City Hall, 70 Court Plaza, starting at 5 p.m. The next meeting is set for Tuesday, June 23. The full recording and documents from the June 9 meeting are available to the public.
