Special Town Council Meeting 7/17/26

Special Town Council Meeting Recap: Budget & Tax Rate Adjustments (July 17, 2026)

On July 17, 2026, the Town Council convened a special meeting to finalize the town's budget and tax rate for Fiscal Year 2026-27. This meeting was necessary due to a recent change in state law impacting how Buncombe County calculates property values for tax purposes, requiring adjustments to the town's previously approved financial plan. The meeting was attended by all Town Council members, including Mayor Pro Tem Foucher and Commissioners Widmer. Resident Josh also provided prepared remarks to the council.

The primary focus of the meeting was understanding and approving a revised budget that accounts for this new state legislation. The council engaged in detailed discussions regarding the financial implications, specifically addressing a projected total budget of $3,020,918 – representing a 20.7% increase from the previous year. Revenue projections include $2,442,818 for the general fund and $578,000 for the water fund (a significant 36% increase). To mitigate further tax increases, a $20,000 reduction was made across various town departments. Ultimately, the council unanimously approved a new ad valorem tax rate of $0.535 per $100 of assessed valuation, ensuring the town collects a similar amount of revenue as initially planned. Commissioner Widmer raised important questions regarding budget figures and sought clarification on revenue sources, prompting further discussion amongst council members.

During the public hearing portion of the meeting, resident Josh delivered prepared remarks outlining the necessity for these adjustments and explaining how the state legislation impacts the town's finances. His presentation helped clarify the situation for both the council and those in attendance. Several council members acknowledged concerns about public perception regarding a tax increase, emphasizing that this adjustment is temporary and driven by the state law change.

Looking ahead, the Town Council agreed to include information about an anticipated reduction in the tax rate next year when presenting future budget details, ensuring transparency for residents. A resolution to donate property was postponed until the August meeting. It’s important to note that the council anticipates a full property revaluation next year, which will likely necessitate further adjustments to the tax rate. The meeting concluded with a unanimous vote to adopt the revised budget and set the ad valorem tax rate, followed by adjournment.

What This Means for You: While the town’s ad valorem tax rate is temporarily increasing, this adjustment is a direct response to state legislation and aims to maintain the town’s current revenue levels. Residents should be aware that property values are expected to be reevaluated next year, which will likely lead to further adjustments in the tax rate. The council is committed to providing clear and accessible information regarding these changes as they unfold, ensuring residents understand the impact on their finances.