# City Council Worksession on Budget (Mar 24, 2026) **Body:** City of Asheville — City Council **Date:** March 24, 2026 2:00 PM EDT (2026-03-24T14:00:00-04:00) **Location:** 70 Court Plaza, Asheville, NC 28801, USA **Link:** https://sunshinemeetings.org/event/2914 ## Summary On March 24, 2026, the City Council held a worksession focused on addressing a projected budget gap for Fiscal Year 2026-27. This session, attended by all council members and key city staff including City Manager DK Wesley and Finance Director Tony McDowell, provided a detailed look at the city's financial situation and potential solutions. While no formal votes were taken, the discussion laid the groundwork for upcoming decisions that will directly impact residents. The primary challenge facing the council is a significant gap between projected revenues and expenses for the coming year. Contributing factors include rising costs due to inflation, increased healthcare and retirement benefit expenses, and the debt service required by the $80 million general obligation (GO) bond referendum approved by voters in November 2024. This referendum will fund crucial infrastructure improvements across the city, including public safety upgrades, transportation projects, parks enhancements, and affordable housing initiatives. A key debate centered on phasing in the 2.58 cent property tax increase needed to cover this debt service – potentially spreading it out over two years instead of implementing the full amount next year. Beyond addressing the immediate budget gap, council members engaged in a robust discussion about balancing the city’s finances. Staff presented several options, ranging from small-scale efficiency improvements (like reducing training and software expenses) to more significant measures like pausing contributions to the Housing Trust Fund, temporarily suspending neighborhood matching grants and pooling maintenance, eliminating a 1% employee 401k match, and even reducing community center hours (returning to pre-COVID levels). A particularly sensitive topic was the potential elimination of contributions to the AVL Arts Grant Program and reductions in litter/hot spot cleaning services. The Council also discussed a revenue-neutral approach, and requested staff to provide more information on what that would look like. Employee compensation was another major focus, with council members exploring various scenarios for raises and addressing salary compression. The City Manager and HR Director recommended a plan that combines a 2.5% across-the-board raise with funds allocated to address pay disparities – a move aimed at ensuring competitive wages and retaining valuable city employees. Finally, the council dedicated significant time to exploring potential changes to the city’s parking system. Discussions revolved around expanding meter zones in areas like South Slope, Biltmore Village and West Asheville, examining how increased parking revenue could support transit funding, and potentially eliminating the "first hour free" promotion. The council directed staff to gather more data on these potential changes and organize an engagement process with the South Slope neighborhood and businesses. **What Happens Next?** Several key action items emerged from the worksession: * **GeoBond Tax Increase:** The council will continue discussions on the timing of the property tax increase related to the GO bond referendum at a future meeting. * **Budget Balancing Strategies:** City staff will refine the proposed cost-saving measures and service reductions, considering council feedback. * **Parking System Analysis:** Staff will provide additional data and analysis on the potential revenue impact of parking changes. * **Community Center Usage:** A deeper analysis of community center usage patterns will be conducted to inform decisions about potential hour reductions. * **Salary Study:** The council acknowledged the need for an updated salary study to ensure competitive pay rates and address systemic compensation issues. **Why This Matters to You:** The decisions made in the coming weeks will have a tangible impact on residents. Potential service reductions could affect access to community programs and city services, while changes to the parking system will impact daily commutes and local businesses. The council’s efforts to address the budget gap are aimed at ensuring financial stability for the city, but finding a balance between responsible spending and maintaining essential services will be crucial. Citizens are encouraged to stay informed about these ongoing discussions and participate in upcoming public forums as the council works towards finalizing the budget. ## Video & Transcript - Recording: https://www.youtube.com/live/ipZCvS6gJy4?si=yxvIyUA-8TWYNwcE - Transcript: https://sunshinemeetings.org/transcript/1979/segments ## Sources - [City of Asheville WordPress](https://www.ashevillenc.gov/government/meetings/city-council-worksession-on-budget-mar-24-2026/) - [City Council agenda page](https://www.ashevillenc.gov/government/city-council-agenda/)