May 2, 2025 - Hendersonville City Council Budget Workshop

Hendersonville City Council Budget Workshop Recap: May 2, 2025

On May 2, 2025, the Hendersonville City Council held a comprehensive Budget Workshop to discuss and prioritize proposals for the upcoming fiscal year (FY26). This session, attended by all City Council members, served as a deep dive into the recommended budget and aimed to balance providing essential services with responsible financial management. While no formal votes were taken during this workshop, the discussions laid the groundwork for decisions that will significantly impact residents in the coming year.

A major focus of the workshop was understanding the proposed adjustments to various city services and rates. The Council engaged in extensive discussion regarding environmental services, particularly reviewing recommendations from last year's route study and a five-year implementation plan. Concerns were raised about the volume of small yard waste piles, prompting consideration of a minimum volume requirement for set-outs to improve collection efficiency. Beyond environmental services, the Council carefully examined proposed increases in rates for water (8%), sewer (9%), stormwater ($1 increase per ERU, capped at $50), and ESF rates (residential +$7, commercial +$10). A proposed $15 increase to the motor vehicle fee, bringing it to a total of $30, was also discussed. Importantly, the Council decided to maintain current tax rates for both the Journal and Main Street funds at 52 cents and 21 cents per $100 of assessed value, respectively.

Beyond rate adjustments, the Council reviewed staffing and compensation plans. The proposed budget includes a 3% cost-of-living adjustment (COLA) for all city staff, along with a 2.56% average merit-based raise. A significant benefit for employees is the planned increase in the 401k match to 3%. The budget also outlines new positions across various departments, including the Journal Fund, downtown fund, water/sewer and ESF. The Council acknowledged ongoing staffing challenges within the Environmental Services department, recognizing the need to explore solutions like route optimization software to reduce reliance on staff floaters and improve employee morale.

The Council also addressed the city’s overall financial health, reviewing the current fund balance and debt service. Discussions centered on revenue loss experienced due to Hurricane Helene and the potential for receiving state funding to aid in recovery efforts. The city’s success in securing grants for housing initiatives was also highlighted, demonstrating a commitment to addressing community needs. Council members emphasized the importance of maintaining a strong fund balance and exploring options for increasing cash reserves, recognizing Hendersonville's role as the primary commercial and economic driver for Henderson County.

What Happens Next?

The Council will continue to deliberate on these budget proposals in upcoming meetings, ultimately voting on the final approval. Residents can stay informed by:

• Checking the City of Hendersonville’s website for official budget documents and meeting minutes.
• Attending future City Council meetings to follow the budget process closely.

This Budget Workshop provided a crucial opportunity for the City Council to thoroughly examine proposed changes that will directly impact Hendersonville residents. The discussions highlighted a commitment to balancing service delivery, financial responsibility, and addressing challenges like staffing shortages and recovery from Hurricane Helene.