February 26, 2026 - Hendersonville City Council Special Called Meeting

Hendersonville City Council Retreat Recap: Financial Health & Future Planning (February 26, 2026)

On February 26, 2026, the Hendersonville City Council convened a Special Called Meeting as part of their staff retreat. This session focused heavily on the city's financial standing and laid groundwork for upcoming budget discussions, providing valuable insights into how your tax dollars are being managed and where the city is headed. The meeting was primarily an internal discussion among council members, with no public comments taken.

A significant portion of the meeting was dedicated to a detailed review of the city's financial performance over the past five fiscal years (FY21-FY25). Council members examined revenue and expenditures across various city funds, including the General Fund, Main Street MSD (Municipal Service District), 7th Avenue MSD, Water/Sewer, Parking, Stormwater, and Environmental Services. Discussions highlighted both successes – such as the growth of the Parking Fund driven by increased meter and garage usage – and challenges, like managing costs within the Environmental Services Fund related to garbage and recycling. The Water/Sewer fund saw revenue growth thanks to rate increases and the implementation of a lifeline tier, but also faced challenges related to sludge management following Hurricane Helene.

Several key discussion points emerged throughout the day. The council engaged in conversations surrounding personnel costs across various funds, including decisions related to hiring an event coordinator for the Main Street MSD and splitting public works salaries. There was also a thorough examination of economic trends impacting the city, presented by staff. This included job market data, property values, and the impact of recent developments like those from Jabil and Eli Lilly. Notably, Councilman Josh McGee raised concerns about rising healthcare costs, specifically highlighting the impact of popular GLP-1 medications and industry consolidation. The council also reviewed employee compensation and benefits, including pay increases, merit-based programs, and the results of a recent climate survey gauging employee satisfaction.

While no formal votes were taken during this retreat-style meeting, the council did direct staff to take several important actions. The first is a review of commercial waste services, with the goal of exploring options for contracting or franchising. Additionally, staff was tasked with researching and comparing credit card processing vendors to potentially reduce associated costs. Finally, the council indicated they would consider a cost of living adjustment for city employees to align with the regional living wage, as determined by Just Economics, and explore increasing the 401k match percentage.

This meeting provided a comprehensive overview of Hendersonville's financial landscape and future priorities. Mayor Grout emphasized the importance of strategic vision, referencing past discussions about prioritizing industrial development. The council’s focus on these financial details and future planning will directly impact residents through decisions made during the upcoming budget process. Citizens can expect further updates on these topics as the budget discussions progress, and staff continues to analyze economic trends and review options for commercial waste services. The council will also be reviewing pharmacy benefit contracts to ensure transparency, and following up on the results of the employee climate survey.