City Council Worksession on Budget (Apr 14, 2026)

City Council Begins FY27 Budget Discussions: Addressing a Gap and Exploring New Opportunities

On April 14, 2026, the City Council convened a worksession to kick off preliminary discussions surrounding the Fiscal Year 2027 (FY27) budget. This session provided a crucial first look at the challenges and opportunities facing the city as it prepares its financial plan for next year. The meeting, attended by all City Council members, focused on a projected $10.5 million budget gap and explored potential revenue sources stemming from recent developments, including a county-wide property revaluation and voter-approved bond initiatives.

A significant portion of the discussion centered on the impact of Buncombe County's recent property revaluation. City staff presented a “revenue neutral” tax rate – approximately 33 cents per $100 of assessed value – that would generate the same revenue as this year despite rising property values. Currently, the city tax rate stands at 44.19 cents. Council members engaged in a lively debate about the implications of setting rates above or below this neutral point, weighing potential benefits for taxpayers against the need to maintain essential city services. Notably, there was strong support expressed for utilizing potential surplus funds from the Business Improvement District (BID), which currently costs $1.3 million annually, to restore funding for downtown events and arts programs, including the AVL Arts grant program. The possibility of using these funds to increase police presence downtown was also considered a priority.

The council also grappled with the $10.5 million budget gap, emphasizing a commitment to creating a structurally balanced general fund budget that avoids relying on the city's reserve funds. A key point of contention revolved around the implementation strategy for the 2024 General Obligation (GoBonds), approved by voters. While some council members, including the Vice Mayor, advocated for fully funding these bonds in FY27 to maximize efficiency and align with voter intent, others expressed concerns about the potential impact on taxpayers and suggested a phased approach over two years. No consensus was reached on this matter, indicating further discussion will be necessary. Walter Eer, Director of Asset and Capital Management, provided an overview of the city’s five-year Capital Improvements Program (CIP), highlighting the reliance on external funding sources, such as federal grants, for critical projects like the Transit Maintenance Center.

While this worksession was primarily informational and did not involve formal votes, it laid the groundwork for future budget decisions. There were no direct public comments during this portion of the meeting. The next crucial step involves a final budget proposal from the City Manager, scheduled for presentation on April 26th. This will be followed by public hearings and further deliberation before the City Council finalizes the FY27 budget. Staff will also provide a list of potential budget balancing strategies and additional details on school zone safety funding for the council’s consideration. Residents are encouraged to stay informed and participate in upcoming public hearings as the budget process progresses, ensuring their voices are heard in shaping the city’s financial future.