Asheville City Council Meeting Recap: May 14, 2024

The City of Asheville City Council held a formal meeting on May 14, 2024, addressing a wide range of municipal business including infrastructure contracts, budget presentations, zoning changes, and board appointments. The agenda featured significant decisions regarding water treatment plant upgrades, the creation of a Downtown Business Improvement District (BID), and the approval of a law enforcement agreement with the University of North Carolina Asheville (UNCA).

Key Decisions and Votes The Council approved several major infrastructure and financial items, most unanimously. The Council voted 6-0 to accept a $5,000,000 ARPA (State Revolving Fund) grant for the Mills River Water Treatment Plant Miscellaneous Plant Upgrades (Rehabilitation) Phase 2 Project. They also voted 6-0 to authorize a construction/repair contract with Wharton-Smith, Inc. for the same project, with a total estimated cost of $26,888,196, and passed a budget amendment of $16,888,996 to fund it. Additionally, the Council voted 6-0 to authorize a construction contract with Hyatt Pipeline LLC for Water Distribution Project 1, Phase 2: McDowell Street Water Distribution, and 6-0 to execute on-call contracts for heavy equipment repair with Atlantic Emergency Solutions and three other vendors.

In other actions, the Council voted 6-0 to accept a $5,000 grant for the North Carolina Governor’s Highway Safety Program (GHSP) 2025 BikeSafe Grant and passed a corresponding budget amendment. The Council voted 5-1 to approve a resolution authorizing the City Manager to enter into an agreement with UNCA regarding police jurisdiction, and 5-1 to appoint Alfred Green to the African American Heritage Commission. The Council also voted 6-0 to approve the rezoning of 1310 Fanning Bridge Road from Industrial District - Conditional Zone to Industrial District, and 6-0 to amend the 2024 meeting schedule to move the June 11 meeting to the Banquet Hall at Harrah’s Cherokee Center - Asheville.

A significant portion of the meeting was dedicated to the first reading of an ordinance creating a Downtown Municipal Service District (Business Improvement District). The Council voted 5-1 to approve the first reading of the ordinance, which sets district boundaries and a tax rate of $0.0919 per $100 of value. The Council also made several appointments to advisory bodies, including Tiffany Debelow to the Community Reparations Committee, Harvey Dean Harrell, Nwena Smith, Alma Atkins, Carl Falconer, and Bethany Vance to the Human Relations Committee, and Charles Crowell to the Neighborhood Advisory Committee. The Council noted that the appointment to the Norris Advisory Board was postponed.

Discussion Highlights The Council presented the Fiscal Year 2024-2025 Proposed Budget, totaling $249.6 million, for informational purposes; no vote was taken. Mayor Esther Manheimer noted that flat sales tax revenue and rising service costs would necessitate a property tax increase next year, estimating an increase of approximately 5.5 to 5.6 cents. City Manager Debra Campbell highlighted that the budget was prepared under different financial circumstances, with unprecedented sales growth ending and ARPA funding nearly exhausted. Finance Director Tony McDowell recommended a "steady-state" approach to General Obligation (GO) bond planning, proposing a $75 million bond in 2024 followed by another $75 million in 2028.

Discussion on the Fire Department budget focused on pay scale "compression," where small pay differentials between lower-level and leadership roles may reduce incentives for promotion. Council members agreed to analyze pay scale and scheduling models before the next budget cycle to address retention issues. Regarding the Downtown BID, Council members discussed the need for a subsequent resolution to guide the Request for Proposals (RFP) for management services, with specific attention to governance structures and board seat allocation. Council Member Sage Turner expressed hope for parity in board seats between property owners and renters and an open application process.

Community Input Public comment was extensive, particularly regarding the Downtown BID and the UNCA police agreement. Several residents, including Hannah Gibbons, Grace Barron, Paige Husiak, and Nina Tovesh, opposed the BID, citing concerns about increased housing costs, concentration of power in wealthy property owners, and the privatization of public spaces. Gibbons presented a petition with over 900 signatures opposing the BID. In response to the UNCA police agreement, residents Atlas Hutchinson and Nina Tobish expressed concerns about the impact on vulnerable populations and the scope of off-campus patrols. Mayor Esther Manheimer and Council members invited Chief Dodd of UNC Asheville to speak, who clarified that UNC officers are sworn state police and that investigations remain with the Asheville Police Department. Council Member Sandra Kilgore expressed appreciation for the partnership given worker shortages. Other public comments addressed the restoration of Malvern Hills Pool, with residents urging the Council to earmark funds for its restoration, and calls for a ceasefire in Gaza.

Follow-ups Staff committed to returning to the Policy, Finance, and HR Committee, and then full Council, before implementing a new retiree health benefit targeted for January 2025. Staff also committed to providing updated information on the status of encumbered funds in the public-facing bond dashboard at the May 28 meeting. Mayor Esther Manheimer stated that the Council intends to draft a resolution to provide direction to staff for the BID RFP process, which is expected to be voted on at the same time as the second reading of the BID ordinance in June. Assistant City Manager Ben Woody confirmed that a "downtown management task force" meets monthly and is prepared to work with the BID and future contracted management entities.

Impact These decisions impact residents through upcoming infrastructure improvements, including upgrades to the Mills River Water Treatment Plant and water distribution lines on McDowell Street, which aim to improve water reliability. The approval of the Downtown BID ordinance moves the process toward a final vote on June 11, 2024, which would establish a new tax district to fund additional downtown services. The presentation of the FY 2024-2025 budget and the proposed $75 million GO bond referendum, scheduled for November 2024, signals a shift in the city's financial strategy to address rising costs and infrastructure needs, with a public hearing on the budget scheduled for May 28, 2024.