City Council FY2027 Budget Work Session – April 14, 2026

City Council Works Towards FY2027 Budget: A Recap for Asheville Residents

On April 14, 2026, the Asheville City Council held a work session dedicated to shaping the city’s budget for Fiscal Year 2027. This meeting, a crucial step in the budgeting process, involved detailed discussions about various financial areas impacting our community. The session provided a valuable look at how the council is prioritizing resources and addressing key challenges facing Asheville.

A significant portion of the meeting focused on reviewing the financial health of the city's "enterprise funds," which are essentially businesses run by the city. These include vital services like water, stormwater management, public transit, parking, and even operations related to Harrah’s Cherokee Casino. The council acknowledged that most of these funds are in a strong position, with healthy balances. Discussions centered on potential adjustments to parking fees and meter locations – a topic that sparked considerable interest. While the council generally supported expanding parking meters to the South Slope area, a decision on extending meter hours until 8 pm and eliminating the first hour free was deferred for further consideration. The council also showed support for utilizing increased sales tax revenue generated by the Business Improvement District (BID) to restore funding for cherished community events like holiday celebrations and the AVL Arts Grant Program.

Beyond enterprise funds, the council delved into the general fund, which supports core city services. Discussions included a cost-of-living adjustment for city employees (projected at $3 million), a gradual reduction in the city’s contribution to the county-run 911 program, and providing additional support to the Housing Authority for increased police presence. A notable decision was allocating an extra $50,000 to the Code Purple program, which provides vital support for individuals experiencing homelessness. The council also reviewed a five-year Capital Improvement Plan (CIP), highlighting the significant focus on recovery efforts related to Hurricane Helene, leveraging federal funds for these crucial repairs. A major long-term project discussed was the construction of a new Transit Maintenance Center, which will require ongoing investment over several years.

While no formal votes were taken during this work session, the council’s direction on parking changes and BID funding restoration provides a clear indication of their priorities. Throughout the meeting, council members emphasized the importance of supporting local businesses and maintaining a vibrant downtown while balancing financial sustainability. Concerns were raised by council members regarding potential impacts on residents and businesses from any tax increases, highlighting the ongoing effort to ensure a fair and equitable budget.

Looking ahead, several key action items have been identified. City staff will finalize the revenue-neutral tax rate for the BID and coordinate with downtown stakeholders to explore options for utilizing any remaining sales tax revenue. Most importantly, the City Manager will present a formal proposed budget in May, which will be subject to further review and public input. To ensure transparency, staff is also preparing a document clarifying the breakdown of required versus optional personnel costs and detailing funding sources for various programs. This work session was a vital step in the budget process, and residents are encouraged to stay informed as the proposed budget progresses through review and approval.

This recap aims to provide a clear overview of the meeting’s key points and outcomes for Asheville residents.