Special Meeting: City Council (In-Person) (Jul 15, 2026)

Meeting Overview On July 15, 2026, the Asheville City Council convened for a special in-person meeting to address an urgent adjustment to the Fiscal Year 2026-27 budget. The session was necessitated by recent state legislation and a concurrent decision by the Buncombe County Commission, which collectively altered the property valuation framework for the city. City Attorney Brad Branham and Finance Director Tony McDowell provided legal and financial context, explaining that the North Carolina General Assembly’s passage of Session Laws 2026-8 and 2026-47 mandated the use of 2025 property tax values rather than the newly adopted 2026 values. Because Buncombe County chose not to exercise a statutory exception allowing for the use of 2026 values, the City of Asheville was legally required to follow suit. Without an adjustment, maintaining the originally adopted tax rate would have resulted in a revenue shortfall of approximately $28 million, leaving the city’s budget unbalanced and legally noncompliant.

Key Decisions and Votes The primary action of the meeting was the approval of a motion to amend the Fiscal Year 2026-27 budget ordinance to reflect new property tax rates. Council Member Bo Hess moved to amend Section 4 of the budget to set the General Fund property tax rate at 50.78 cents per $100 of assessed valuation, up from the originally adopted 37.69 cents. He also moved to amend Section 5 to adjust the Business Improvement District (BID) tax rate to 8.77 cents per $100 of assessed valuation, up from 7.63 cents. Council Member Manheimer seconded the motion. The measure passed with a vote count of 4 in favor and 2 opposed. Council Member Kim Roney was unable to cast a vote as she joined via speakerphone, though she stated on the record that she would have voted "no" if present.

Discussion Highlights The discussion centered on the legal constraints imposed by state law and the financial mechanics of the rate adjustment. Finance Director Tony McDowell clarified that the rate increase represents a "net zero impact" on total city revenue, ensuring the budget remains balanced as originally approved in June. Mayor Esther Manheimer emphasized the importance of public communication, describing the situation as a "do-over" of the valuation process rather than a tax increase. She noted that while the rate is higher, many individual homeowners might see unchanged or slightly lower bills due to the reverted property values. Council Member Hess expressed frustration with the North Carolina General Assembly for changing rules after the city had completed its budget process, particularly given the ongoing recovery efforts from Tropical Storm Helene. He argued that supporting the budget was essential to supporting city workers, police, firefighters, and infrastructure.

Community Input and Public Comments Public comment during this special meeting was limited to the statements made by council members regarding their voting positions. Council Member Roney, joining remotely, explained her opposition by citing concerns about resources, wages, and compensation, mirroring her stance on the previous budget. Council Member Hess spoke in support of the motion, thanking finance and legal staff for their work. Another council member, identified in the transcript only as Speaker 4, stated that while he did not support the specific motion, he understood the concept and felt he had no choice but to support it generally. Mayor Manheimer addressed potential media confusion directly, clarifying that comparing the new rate to the old rate is misleading because the underlying property values have changed, aiming to maintain public trust.

Follow-ups and Next Steps No specific action items or staff directives were assigned during this meeting beyond the standard ongoing monitoring of the budget. Finance Director Tony McDowell noted that the County will likely conduct a new re-evaluation as part of next year’s budget process, potentially updating 2026 numbers, but no specific timeline or task was assigned to staff at this time. Mayor Manheimer acknowledged that the state legislature may pass further legislation, including a potential constitutional amendment on property tax caps, which could affect future budgeting, but no specific directive was given to staff to prepare for this beyond general awareness. The council adjourned from open session and went into closed session to discuss personnel matters and privileged information, per NC General Statutes, before concluding the meeting.