City Council Special Work Session – January 13, 2026

City Council Addresses Infrastructure Recovery & Budget Challenges in Work Session

On January 13, 2026, the Asheville City Council held a work session focused on two major priorities: recovering from recent disaster-related infrastructure damage and laying the groundwork for the Fiscal Year 2027 (FY27) budget. This session, the first with newly appointed City Manager Wesley, served as a preliminary discussion and did not involve any formal votes. The meeting provided valuable insight into the challenges facing Asheville and the direction Council is considering as it navigates these issues.

A significant portion of the session centered on Phase One findings from the public engagement process for the Azalea and French Broad Riverfront Parks recovery projects. Director Dee Tyrell McGirt presented feedback gathered from over 2,300 residents through open houses, surveys, pop-up events, and focus groups. The community overwhelmingly prioritized flood resilience, pedestrian safety, and multimodal access within the parks. Residents also expressed strong desires for nature-focused trails, community pools/water access, and ecological stewardship along the riverbanks. Council members emphasized the importance of incorporating this feedback to “build back better, smarter, and more resilient,” as stated by Director McGirt.

The discussion then shifted to the FY27 budget, presented by Budget and Performance Manager Lindsay Spangler. A major challenge was identified: a projected $30 million gap between anticipated revenues and expenses. This shortfall stems from several factors, including rising costs for healthcare, retirement benefits, and transit contracts; the end of one-time funding sources utilized in the current year (including a FEMA Community Disaster Loan and fund balance); uncertainty surrounding the upcoming county property tax reassessment; and potential shifts in state funding formulas. Council members voiced concerns about the impact of these challenges on residents, particularly regarding affordability and ensuring a long-term financial strategy. A motion was made to move the public comment session from January 10th to February 10th.

Community input was a recurring theme throughout the meeting. Council members and staff stressed the importance of hearing from all segments of Asheville, including renters and lower-income residents. One resident highlighted the need to balance long-term resilience projects with addressing immediate community needs, suggesting interim infrastructure solutions. Strong support was expressed for prioritizing reforestation and riparian health along the French Broad River, reflecting a broader community desire to enhance ecological stewardship.

Looking ahead, several key action items were identified. The Infrastructure Recovery Board will continue exploring funding opportunities and reviewing consultant designs for the park projects. City staff will conduct a peer city analysis to examine budget strategies implemented by other North Carolina municipalities, as well as provide an updated living wage analysis based on data from Just Economics. HR will explore solutions to address rising healthcare costs, and staff will gather data on utilization of property tax mitigation grants. Several more work sessions and public hearings are planned throughout the spring to finalize the FY27 budget, providing ongoing opportunities for citizen engagement.

This work session underscored the significant financial challenges facing Asheville as it recovers from recent events and plans for the future. Residents can expect further discussions on these critical issues in the coming months, with opportunities to provide input and shape decisions that will impact our community for years to come. The city is committed to transparency and encourages all residents to participate in the budget process as it unfolds.