City Council Worksession on Budget (Mar 24, 2026)

City Council Grapples with Budget Gap: A Look at Proposed Adjustments

On March 24, 2026, the City Council held a work session focused on addressing a significant budget gap projected for the upcoming fiscal year. The meeting, attended by all council members, aimed to explore potential adjustments to spending and revenue generation strategies. While no formal votes were taken during this session, the discussion provided valuable insight into the challenges facing the city and potential impacts on residents.

The primary driver of this budget gap is a combination of rising costs and commitments made through the 2024 GeoBond referendum. Staff presented data indicating a $16.8 million increase in base budget expenses compared to the previous year, largely due to unavoidable factors like healthcare and retirement costs. The GeoBond referendum, which approved $80 million for crucial infrastructure improvements, will require a property tax rate increase to cover the associated debt service. A key debate centered around how best to implement this increase: either a full implementation next year or phasing it in over two years. Council members expressed concerns about the impact of either option on residents, weighing the need for immediate funding against potential financial strain.

Beyond the GeoBond impact, discussions also covered other areas of concern. The Asheville Police Department requires increased funding to support efforts towards full staffing, adding $1.8 million to the budget needs. Rising costs associated with the transit contract and fleet maintenance were also identified as contributing factors to the gap. To address these challenges, staff presented a range of potential cost-saving and revenue-generating strategies. These included eliminating vacant positions that have remained unfilled for extended periods, reducing community center hours (excluding summer), pausing contributions to the AVL Arts Grant Program, decreasing litter and hot spot cleaning services, and reducing maintenance on medians and guardrails. These proposals sparked considerable discussion among council members regarding the potential impact on community services and quality of life.

There was no direct public comment during this work session, but the potential impact on residents was a recurring theme throughout the council’s deliberations. City Manager DK Wesley emphasized the importance of addressing the gap proactively to avoid depleting the city’s fund balance, which could negatively impact its credit rating. Finance Director Tony McDowell and Budget Manager Lindsey Spangler provided detailed financial data, laying the groundwork for informed decision-making.

What's Next? The City Council will continue to grapple with these budget challenges in the coming weeks. Key action items include:

• Continued Discussion on GeoBond Tax Rate: Expect further debate and potential votes regarding the proposed property tax increase to cover debt service for infrastructure improvements.
• Review of Budget Balancing Strategies: Council members will continue to evaluate the proposed cost-saving measures and their potential effects on city services.
• Compensation Discussions: A separate discussion led by Emily Proviance will focus on employee compensation matters.
• Formal Vote on Fees and Charges: A future meeting will be dedicated to formally voting on fees and charges for the upcoming fiscal year.
• Monitoring Fuel Prices: City staff will continue to monitor fuel costs, as fluctuations could necessitate further budget adjustments.

This work session provided a crucial look at the difficult choices facing the City Council as they navigate a challenging budget environment. Residents can anticipate further updates and decisions in upcoming council meetings, particularly regarding the GeoBond tax increase and potential adjustments to city services. Your voice matters – stay informed and engage in the process as these important decisions unfold.