Asheville Council Hears $250M Budget Proposal; Mayor Warns of Tax Hike in 2025

Asheville Council Hears $250M Budget Proposal; Mayor Warns of Tax Hike in 2025

City Council Considers $249.6 Million Budget

City Council considered its proposed $249.6 million budget on May 14, which includes a 4.1% pay increase for all city employees. However, the city will need to dip into its fund balance to overcome stagnating sales tax revenue and escalating service costs.

Property Tax Increase Expected in 2025

While no property tax increase is proposed in the fiscal year 2024-25 budget, Mayor Esther Manheimer warned that next year would bring a “painful conversation.” Stagnant sales tax revenues are affecting local governments nationwide, prompting Asheville to consider a property tax increase in 2025.

Bond, BID, and Balanced Budget

The budget focuses on compensation and benefits, with limited revenue growth available for new initiatives. A general obligation bond referendum in November is recommended to finance significant city projects.

Malvern Hills Pool Back on the Table

Discussions were held around the funding for the Malvern Hills Park pool, with council members expressing interest in including it in the bond package. The pool was closed due to repair issues, sparking community support for its rebuild.

City Employees to Receive 4.1% Pay Increase

The proposed pay increase aims to bring employees up to a living wage rate, but falls short of Asheville’s actual living wage. There are concerns about not reaching the desired wage level for all employees.

Budget Highlights

• The proposed $249.6 million budget represents a 4% increase over the previous year.
• Increases in solid waste, stormwater, and water fees will lead to an average $20 annual increase for residential households.
• The budget allocates funding for the Community Responder Program and includes a reparations allocation for APD.

Public Input

Asheville City Council will hold a budget public hearing on May 28. The budget adoption is scheduled for June 11.