City Council Meeting (Dec 10, 2024)

On December 10, 2024, the Asheville City Council held a regular meeting that focused heavily on the city’s financial standing and its ongoing recovery efforts following Tropical Storm Helene. The agenda included a review of the Fiscal Year 2024 (FY24) audit, the allocation of federal disaster recovery funds, and the ratification of numerous emergency contracts entered into during the storm response.

Key Decisions The Council unanimously approved (7-0) a series of resolutions and ordinances, primarily related to emergency infrastructure repairs and financial compliance. Key votes included:

• Emergency Contract Ratifications: The Council ratified emergency contracts with CDM Smith, Inc.; State Utility Contractors, Inc.; Schnabel Engineering South P.C. (for both North Fork and Bee Tree Dam repairs); and Phillips and Jordan, Inc. These contracts address damage to water production facilities, dams, and spillways.
• Fees and Charges: The Council passed an ordinance repealing and re-adopting the Fiscal Year 2024-25 Fees and Charges Manual. This allows the City Manager to waive or modify fees during declared states of emergency without a prior public hearing.
• Disaster Recovery Funding: The Council approved amendments to the Community Development Block Grant (CDBG) Annual Action Plan and a technical budget amendment to accept $1,748,141 in disaster recovery funds from the U.S. Department of Housing and Urban Development (HUD).
• Bond Referendum: The Council certified the results of the special bond referendum held on November 5, 2024, which approved $80 million in bonds for housing, transportation, parks, and public safety.
• Other Approvals: The Council also unanimously approved resolutions for a contract with DEC Associates for financial advisory services, an amendment to the Commonwealth Golf Partners II agreement, an interlocal agreement with Buncombe County for the McCormick Field renovation, and a technical budget amendment for year-end encumbrances.

Discussion Highlights The primary discussion centered on the FY24 audit presentation by Finance Director Tony McDowell and auditors from Cherry Bekaert. The city received an "unmodified" or "clean" audit opinion, indicating no material misstatements in its financial statements. However, the unassigned fund balance in the General Fund decreased from 18.8% to 16.8%, though it remains above the city’s 15% policy threshold. Because this decrease triggers a requirement under the Local Government Commission’s (LGC) Financial Performance Indicators program, staff must submit a written response to the LGC within 60 days.

Council members also discussed the proposed allocation of the $1.7 million in HUD disaster recovery funds. The plan designates $624,000 for business restabilization grants, $624,000 for rental assistance, $250,000 for homeless emergency shelter support, and $250,141 for CDBG program administration. Additionally, funds previously allocated for Stephens-Lee Community Center outdoor improvements were redirected to Parks and Recreation for disaster recovery needs. During the discussion, Council members explored partnering with Buncombe County to distribute rental assistance, citing the county’s existing infrastructure and concerns about the timeliness of the current disbursement process.

Follow-ups Staff agreed to prepare the required written response to the Local Government Commission regarding the decrease in the General Fund balance. Staff also agreed to continue discussions with Buncombe County regarding a potential partnership for the distribution of rental assistance funds. Furthermore, staff will bring recommendations for a long-term plan regarding the lease agreement and operations of McCormick Field to the Council before March 31, 2025.

Impact These decisions formalize the city’s financial response to Tropical Storm Helene, ensuring that emergency repairs to critical water infrastructure are legally ratified and that federal funds are properly allocated to support affected residents and businesses. The re-adoption of the Fees and Charges Manual provides the City Manager with the flexibility to quickly waive fees in future emergencies, while the certification of the bond referendum results moves the city toward the next steps in securing long-term funding for capital projects.