City Council Budget Work Session – April 8, 2025

City Council Works Towards FY2025-26 Budget: A Recap for Residents

On April 8, 2025, the Asheville City Council held a Budget Work Session, marking a significant step in finalizing the city's financial plan for the upcoming fiscal year (July 1, 2025 – June 30, 2026). This session provided a detailed look at the current financial situation and explored potential strategies to address an initial $11.4 million budget gap, which has been narrowed to approximately $10 million through adjustments and revised revenue projections. The meeting was primarily focused on information gathering and discussion, with no formal votes taken at this stage.

A major focus of the meeting was employee compensation, particularly for our Police and Fire personnel. Council members engaged in a robust discussion regarding how to best support these vital departments while remaining fiscally responsible. A key point of debate centered on transitioning both the Police and Fire Departments away from a traditional step pay system to a career ladder structure. While both proposals were discussed, the Council prioritized exploring the implementation of a fourth shift for firefighters, which would reduce individual hours and potentially improve work-life balance. Additionally, a 3% hybrid compensation increase for general city employees was discussed, with the aim of bringing many full-time permanent staff above the local living wage. The council acknowledged the importance of attracting and retaining skilled employees, especially within the Fire Department, to ensure a high level of service for our community.

Beyond personnel matters, the Council reviewed the City's Capital Improvement Plan (CIP) for the next five years. This plan outlines major infrastructure projects, including those funded through general capital reserves, geo bonds, and recovery efforts related to recent storm damage. The Council also discussed a potential $5 million loan application from FEMA, designed to assist with disaster recovery. If approved, this loan would provide crucial financial support but would require repayment (with interest) unless Congress chooses to forgive it. Potential uses for the funds include addressing general fund revenue shortfalls, supporting water fund needs, and assisting with parking and transit operations.

While no public comments were received during this work session, the Council’s discussions reflected a commitment to balancing employee needs with the financial realities facing Asheville. The next steps involve City staff finalizing the proposed budget based on the Council’s direction, which will be presented in May. Staff will also continue to monitor the FEMA loan application and develop detailed project sheets for planned capital projects, providing residents with more information on these initiatives. Ultimately, the Council will hold final budget votes in June, allowing for further deliberation and ensuring that the city's financial plan aligns with community priorities. Residents are encouraged to stay informed as this process continues and to engage in the budget discussion through future public forums.