City Council Meeting (Apr 9, 2024)

City Council Work Session Recap: Budget Discussions & Future Planning (April 9, 2024)

The City Council convened a work session on April 9, 2024, to focus primarily on the development of the upcoming 2024-2025 budget. This session served as an important opportunity for council members to review key financial challenges and explore potential solutions, ultimately shaping the direction of city spending in the coming year. The meeting also included welcomes for returning staff member Tony McDowell (Director of Finance and Management Services) and the introduction of Cheryl Brown as interim Human Resources Director.

A significant portion of the discussion centered on balancing revenue challenges with critical needs in employee compensation and capital projects. City Manager Deborah Campbell highlighted the current financial landscape, noting slow revenue growth coupled with rising costs and a necessary reliance on existing fund balance to maintain budgetary equilibrium. A key point of discussion was the rising cost of healthcare programs, prompting consideration of reinstating a retiree health benefits program. The council also explored options for issuing a General Obligation (GO) bond to fund essential infrastructure improvements, weighing the timing and potential amounts of such a bond issuance. A potential future referendum was also discussed, with consideration given to allocating funds towards housing and public safety initiatives.

While no formal votes were taken during this work session, several key recommendations emerged from staff. A proposed 4.11% pay increase for all city employees was presented, aiming to bring the lowest-paid employee up to a "Just Economics Pledge" living wage. This adjustment would be initially funded through the city's fund balance. Furthermore, staff recommended a total bond package of $75 million in 2024, with an additional GO bond vote scheduled for 2028. These recommendations sparked debate among council members, particularly regarding the long-term sustainability of utilizing fund balance to cover salary increases and potential impacts on employee morale. Concerns were also raised about the county's appraisal practices and their influence on property taxes, prompting a discussion of potential collaboration with County Commissioners.

Community input was limited during this work session, but council members actively engaged in discussions reflecting their constituents’ concerns. Council members voiced a desire to explore avenues for addressing the county's appraisal practices and their potential impact on property taxes.

Looking ahead, several key action items were identified. City staff will conduct further analysis and modeling of various compensation scenarios to provide a more comprehensive understanding of the potential impacts. An investigation into the county’s appraisal practices is also underway, with a possible discussion planned with County Commissioners. Finally, staff will prepare a detailed breakdown of the proposed budget, outlining revenue sources and expenditure allocations for greater transparency. Residents can expect further opportunities to engage in the budget process at upcoming City Council meetings, including a review of the Manager’s proposed budget on May 14th, a public hearing on May 28th, and final budget adoption on June 11th. Detailed meeting minutes and related documents will be available for public review on the City of Asheville website: https://www.ashevillenc.gov/.