City Council Retreat – Day 2 of 2 – February 23, 2024

City Council Retreat Recap: Shaping Asheville's Future Finances and Workforce

On February 23rd, the City Council convened for a full-day retreat, marking the second day of their strategic planning session. Facilitated by Dr. Amy Clymer, the retreat focused heavily on budget discussions and setting strategic goals for the upcoming fiscal year. While no formal votes were taken, this session laid crucial groundwork for decisions impacting Asheville residents and city employees.

A significant portion of the day was dedicated to a thorough review of the city's current financial standing and projections for the next fiscal year. City staff presented detailed information on revenue sources, particularly sales tax which is showing signs of slower growth, and expenditure trends. The council engaged in robust discussions about potential budget adjustments, prioritizing investments, and addressing the critical issue of employee compensation. A key point of discussion revolved around ensuring Asheville can retain its talented workforce amidst rising living costs, and the potential impact of adopting a "living wage" standard. Several council members emphasized that attracting and retaining qualified city employees is vital to providing excellent services for residents, and affordability is a major factor.

Beyond compensation, the council also explored long-term capital planning, including preparations for an upcoming General Obligation (GO) bond referendum. Discussions touched on the city’s infrastructure needs and potential funding sources, including exploring opportunities presented by opioid settlement funds. The council also considered the Community Responder Program and its potential for expansion, aligning with a broader priority to reimagine public safety in Asheville. The Artsy Coalition and other community groups were mentioned as advocating for the program's growth, demonstrating a strong interest from residents in alternative approaches to community safety.

While no formal public comment periods were held, the council’s discussions clearly reflected concerns shared by Asheville residents regarding affordability and supporting city employees. The retreat highlighted a desire to move beyond traditional compensation models, exploring alternative approaches that consider the total cost of employing city staff – including benefits and indirect expenses.

What's Next? Here’s what you can expect:

• Further Study on Employee Compensation: City staff will analyze the potential impacts of adopting a "living wage" standard and present options to the council. They will also gather data on how many city employees currently live within Asheville and provide a detailed analysis of wage compression, exploring potential solutions.
• Visible Working Agreements: The council agreed to explore ways to make their working agreements – which emphasize open communication, collaboration, and respectful disagreement – more visible within city government.
• Continued Budget Discussions: The council will continue their budget discussions at upcoming work sessions on March 26th and April 9th. These meetings will provide opportunities for further input and debate before final decisions are made.
• Fair Market Rent Data: Staff will investigate the feasibility of obtaining city-specific fair market rent data, which could inform decisions related to employee compensation and housing affordability.

This retreat was a vital step in shaping Asheville's financial future and ensuring the city can attract and retain a skilled workforce. The discussions highlighted the challenges ahead, but also demonstrated a commitment to finding solutions that benefit both city employees and the broader community. Residents are encouraged to attend upcoming work sessions to stay informed and participate in this important process.