City Council Meeting Recap: March 11, 2025

The Asheville City Council held a combined meeting on March 11, 2025, consisting of a Budget Work Session beginning at 3:00 PM and a formal Council meeting beginning at 5:00 PM. The agenda addressed the financial impacts of Tropical Storm Helene, the development of the Fiscal Year 2026 (FY26) budget, emergency recovery contracts, and significant amendments to the city’s Unified Development Ordinance (UDO) regarding housing and zoning.

Key Decisions and Votes

The Council voted unanimously (7-0) to ratify an emergency contract with Campbell Inc. for the Mills River Water Treatment Plant, waiving standard contracting procedures due to the urgency of the storm response. The total cost of this emergency work was $267,718.50. Additionally, the Council approved a resolution authorizing the reallocation of $200,000 in undedicated public art funds to support Helene recovery efforts through ArtsAVL, which will provide grants to arts businesses and support marketing for the River Arts and Downtown Arts Districts.

In a significant financial move, the Council passed a 7-0 vote to amend the General Capital Projects Fund by $80,000,000 to budget for capital improvements approved by voters in the November 2024 General Obligation Bond referendum. Staff noted that a property tax rate increase will be required in fiscal year 2026-27 to cover the debt service on these bonds. The Council also unanimously approved a contract with Cherry Bekaert, LLP for the city’s annual financial audit for the fiscal year ending June 30, 2025, with a maximum fee of $168,600.

The Council approved several service contracts and permits by unanimous vote. These included:

• A sole-source contract with Central Nebraska Packing Inc. for carnivore diets for the WNC Nature Center, costing $12,500 per year.
• Amendments to existing contracts with Ken Wilson Ford and Freightliner of Arizona (d/b/a Velocity Truck Center) to increase funding for vehicle repairs, adding $150,000 and $80,000 annually, respectively.
• Not-to-exceed on-call contracts with four vendors for fire apparatus repair: All Pro Fire & Safety, Atlantic Emergency Solutions, Carolina 1926 d/b/a Carolina Caterpillar, and Allsource Enterprises dba Safe Industries.
• A service contract with Wilde Acre Landscapes for mowing maintenance of city parks, not to exceed $213,109 for the initial year.
• A service contract with Rivertop Contracting, NC for mowing and maintenance of Riverside Cemetery, not to exceed $66,240 for the initial year.
• Resolutions permitting the possession and consumption of malt beverages and/or unfortified wine at the Chai Pani Holi Celebration, Downtown After 5 events, the Community Concert, and Asheville Veganfest.
• A resolution of support for the N.C. Department of Transportation to abandon a 0.45-mile segment of Campus Drive as requested by the University of North Carolina at Asheville.
• A contract with Jarrett Walker & Associates, LLC to conduct a Comprehensive Operational Analysis of the Asheville Rides Transit system, not to exceed $299,877.

Regarding zoning and development, the Council held public hearings on several UDO amendments. The Council voted 4-3 to approve amendments related to cottage development standards, flag lot standards, and updates to definitions and commercial zoning districts. Councilmembers Mosley, Roney, and Smith voted against these specific amendments. The Council also approved a resolution of intent to close a portion of an unopened right-of-way connected to Morningside Drive, with a public hearing scheduled for April 8, 2025.

Budget Work Session Highlights

During the Budget Work Session, staff presented initial projections for the FY26 general fund, anticipating a potential revenue shortfall of $1 to $4 million due to economic uncertainty and the lingering effects of Tropical Storm Helene. Staff proposed cost-saving measures, including pausing the strategic partnership grant program and the neighborhood matching grant program, as well as reducing training and travel expenses.

A major portion of the discussion focused on maintaining a healthy fund balance. Staff presented scenarios that would require property tax increases ranging from 4.65% to potentially higher rates, depending on salary adjustments. The Council discussed the second year of a three-year phase-in of water rate adjustments, with staff anticipating a 7.5% increase for residential and commercial customers in FY26. The Council supported staff bringing the FY26 fee approvals to the April 8, 2025, meeting for a formal vote. Additionally, the Council approved a new fee of $15 per hour for groups using the newly renovated Memorial Stadium track.

Community Input

During the Budget Work Session, staff highlighted findings from a recent community survey regarding recovery priorities, emphasizing themes such as strengthening infrastructure, housing, economic recovery, food security, and sustainability. Staff also noted that five community members had spoken during a recent public hearing, advocating for climate action, living wages, increased transit services, and fiscal responsibility. During the formal meeting, a resident expressed concern about the financial state of the Muni Golf Course, which is experiencing losses, and asked for more information.

Follow-ups and Next Steps

Staff agreed to provide additional details on the Other Post-Employment Benefit (OPEB) liability and service delivery impacts. Staff will also explore additional cost-saving options for FY26. The Council will discuss employee compensation strategies at the next budget work session on March 25, 2025, where they are also expected to vote on a $2.8 million state cash flow loan to help with storm recovery expenses. The Council will vote on the FY26 fee adjustments, including water rates, at their April 8, 2025, meeting. A final FY26 budget is scheduled to be presented to the Council in May, with a public hearing and adoption scheduled for June.