City Council Worksession on Budget (Mar 10, 2026)

City Council Work Session Recap: Budget Revenue Discussions (March 10, 2026)

On March 10, 2026, the Asheville City Council held a work session focused on laying the groundwork for the upcoming FY2027 budget. This meeting, part of a series designed to inform Council's decisions, centered on potential adjustments to various city fees and charges, aiming to ensure the budget is sustainable and responsive to community needs. The session was led by City Manager D.K. Wesley, with presentations from Budget and Performance Manager Lindsay Spangler and Finance Director Tony McDowell. No final decisions were made during this session; rather, it served as an opportunity for discussion and gathering Council input.

A significant portion of the meeting was dedicated to exploring potential revenue increases across several city services. Council members engaged in detailed discussions regarding proposed adjustments, including a $2 increase to the monthly solid waste fee (bringing it to $8), driven by rising disposal costs and a loss of county rebates. Concerns were raised about the impact on residents, particularly given recent challenges like Hurricane Helene and the ongoing property revaluation. Proposed increases were also discussed for Nature Center admission fees ($2 for residents, $3 for non-residents), street closure fees (a tiered system based on complexity), stormwater fees (a 7.5% increase to address aging infrastructure), water rates, and parking fees (including a $1 increase for special event parking and a $5 increase for monthly permits). The discussion around parking fees, specifically the current “first hour free” policy, highlighted potential impacts on local businesses and prompted a commitment to further discussion in a dedicated work session.

Beyond specific fee adjustments, Council received an update on overall revenue projections for FY2027. Finance Director McDowell presented a sobering picture, noting that revenues are projected to be $3.4 million less than this year due to the ongoing property revaluation process and a loss of $5.6 million in one-time revenue from previous years. The flat sales tax revenues, reflecting ongoing economic challenges, further contribute to the projected shortfall. Council members expressed interest in exploring innovative revenue generation strategies, particularly regarding stormwater management and linking rates to property permeability. Public comments were limited but included concerns from Council members about the potential impact of parking fee changes on local businesses.

Following the presentations and discussions, several key action items were identified for city staff. These include providing a comprehensive list of all proposed fee changes for Council review, gathering data on the costs and potential revenue from charging for bulky item pickup, and conducting a more detailed analysis of non-resident Nature Center fee revenue. Staff will also explore options for linking stormwater rates to property permeability and present their findings in a future session. Most notably, the Council directed staff to schedule a separate work session specifically focused on parking fees and the "first hour free" policy.

This budget work session was a crucial first step in shaping Asheville's FY2027 budget. The discussions highlighted the challenges facing the city’s finances and underscored the need for careful consideration of revenue adjustments. Residents can expect further opportunities to engage in this process as Council continues its budget deliberations, with the next session (March 24th) focusing on spending strategies and addressing a general fund gap. The outcome of these discussions will directly impact the services residents receive and the financial health of our city for years to come.