City Council Meeting (May 26, 2026)

Asheville City Council Meeting Recap: May 26, 2026

The City Council convened on May 26, 2026, for a formal meeting focused on financial approvals, budget planning, and community development initiatives. The session included a public hearing on the Fiscal Year 2026-27 Annual Operating Budget and a separate public hearing regarding the 2026-2027 Annual Action Plan for Community Development Block Grant (CDBG) and HOME programs. The Council also reviewed routine capital projects and administrative updates provided by the City Manager.

Key Decisions and Votes

The Council approved the Consent Agenda, which included the approval of minutes from previous meetings and several resolutions. Specifically, the Council voted to approve an amendment to a financing agreement allowing up to $40 million in debt for capital projects, including public safety, transportation, and facility maintenance. The Council also unanimously approved an increase in funding for the Litter and Cleanliness Program, authorizing contract amendments with WNC Landscaping LLC and Steri-Clean of NC to extend renewal periods and increase funding to a not-to-exceed amount of $1,073,640. Additionally, the Council authorized an amendment to the contract with Weisiger Group (d/b/a Carolina CAT) for heavy truck repair services. The Council also approved a resolution modifying the City Council meeting schedule, establishing new Policy, Finance & Infrastructure (PFI) Worksession dates starting in July 2026. Proclamations included declaring June 2026 as the "14th Annual Pollinator Celebration Month."

Discussion Highlights

A significant portion of the meeting was dedicated to the proposed FY27 budget, which totals $275.6 million and includes a 4.95 cent property tax rate increase. Council members discussed cost-saving measures, including the elimination of 16.5 vacant positions, reduced community center hours, and the pausing of contributions to the Housing Trust Fund and Other Post-Employment Benefits Trust Fund. The budget also proposes eliminating the 1% employee 401(k) match. Regarding employee compensation, the Council discussed a 2.8% cost-of-living adjustment (COLA) for permanent staff and a proposed minimum wage increase for temporary and seasonal workers. Staff noted that while a $20/hour minimum for temporary workers was proposed, they do not recommend immediate implementation pending a comprehensive compensation study. The Council also reviewed a Capital Improvement Program update, highlighting progress on the Municipal Building repairs, Biltmore Village infrastructure, and other projects.

Community Input

During the public hearings, residents provided comments on the budget and CDBG/HOME funding plans. Concerns were raised regarding the responsiveness of the Council to public input and transparency, particularly regarding past decisions related to the Business Improvement District (BID). Council members acknowledged the importance of listening to residents and pledged to improve communication and transparency. Public comment on the CDBG and HOME programs remained open until June 5, 2026, with comments to be presented to the Council on June 9, 2026.

Follow-ups and Next Steps

The Council will vote on the final FY27 budget and the CDBG/HOME Annual Action Plan at the next meeting on June 9, 2026. A comprehensive study of city employee salaries is planned to ensure fair compensation. A briefing on the EPA-mandated lead pipe replacement project is scheduled for a committee meeting on July 21. Staff will provide a memorandum detailing the impact of proposed hour reductions at community centers, due May 28, 2026. The City Manager or Finance Director is responsible for pursuing the $40 million debt financing, with a plan to refinance into a long-term loan around July 2028. The Local Government Commission is expected to approve the bond plan in their June meeting.