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

City Council Addresses State-Mandated Budget Adjustment

On July 15, 2026, the Asheville City Council convened a special meeting to address an unforeseen budget crisis stemming from recent actions by the North Carolina General Assembly (NCGA) and a subsequent decision by Buncombe County Commissioners. The meeting, held in person, focused solely on rectifying a significant revenue shortfall created by these external factors and ensuring the city can continue providing essential services.

The core issue arose when the NCGA passed legislation (Session Laws 2026-8 and 2026-47) requiring both Buncombe County and municipalities within it, including Asheville, to revert to using property tax values from 2025. Buncombe County Commissioners subsequently voted against adopting a "revenue neutral" tax rate, preventing them from utilizing updated 2026 property values. This decision forced Asheville to confront a projected revenue shortfall, placing the city in a legally noncompliant position regarding its budget. To address this, City staff, led by Finance Director Tony McDowell, proposed a necessary adjustment to Asheville’s property tax rate. After careful consideration and legal counsel from City Attorney Brad Branham, the Council voted unanimously to amend the budget ordinance, raising the property tax rate from 37.69 cents per $100 of assessed value to 50.78 cents per $100 of assessed value, with a corresponding adjustment to the Downtown Asheville Business Improvement District (BID) tax rate. Importantly, staff emphasized that this increase is not intended to generate additional revenue; rather, it's a corrective measure designed to maintain the city’s original budget projections in light of the state-mandated change in property valuations.

During the meeting, several council members voiced their frustration with the NCGA’s actions and the resulting disruption to Asheville's budget process. Councilman Roney, participating remotely, expressed his disappointment with the state’s intervention. Council member Kim voted against the motion due to concerns about the budget and wage/compensation, while Council member Smathers delivered a detailed statement outlining the challenges faced by both the council and city staff. Public comments were limited, but those who spoke echoed concerns about the state's actions and their impact on the community.

Looking ahead, City staff committed to ongoing transparent communication with residents regarding these changes and will closely monitor any further actions by the NCGA that could impact Asheville's financial stability. The city will also engage in discussions with Buncombe County as part of next year's budget planning, paying particular attention to the county’s upcoming property revaluation process.

What this means for Asheville residents: While the tax rate is changing, it’s crucial to understand that the overall amount of property taxes collected by the city will remain approximately the same. Individual taxpayers' bills may vary depending on their property’s assessed value under the 2025 values. The City Council and staff are dedicated to providing clear information and resources to help residents navigate these adjustments, ensuring that essential city services continue uninterrupted.