Asheville: Buncombe TDA makes Woodfin Wave funding update; proposes $27.3M operating budget

Buncombe TDA discusses funding forecast and budget proposal

The Buncombe County Tourism Development Authority discussed the forecasted $34.3 million expected in revenue from occupancy taxes for fiscal year 2025 during its May 29 meeting. The BCTDA’s finance committee suggested adding an additional $4.3 million to the fund that controls marketing and administrative expenses in a proposed budget, with staff and board members stating it would help the region to stay competitive in the tourism market.

The board also voted to modify the funding timeline for the Woodfin Whitewater Wave project, which is expected to be finished by the end of 2024.

Revenue and budget breakdown

For both fiscal year 2024 and 2025, BCTDA reported the county administrative fee to be around $1.8 million — a 260% increase from the $500,000 admin fee in 2023 — and set a projected $34.3 million in occupancy tax revenue for the upcoming year, BCTDA nonprofit treasurer HP Patel said during the meeting.

Buncombe County officials announced last year that they would be updating the administrative fee from 1.5% to 5% for occupancy taxes. The forecasted revenue for 2025 would set aside roughly $11.4 million for community capital projects and $22.9 million for marketing, advertising, sales, promotion, and administrative expenses, known as the BCTDA’s “operating budget.”

The BCTDA expects a total of $15.3 million will be available for community capital projects for the upcoming fiscal year, according to a May 29 news release.

Operational budget adjustments

In the past few years, the operating budget has decreased after a 2022 bill changed how BCTDA occupancy taxes are distributed, favoring tourism promotion but providing more funds for community capital projects. The BCTDA finance committee proposed adding $4.3 million from their fund balance designation to the operating budget, a necessary move to stay competitive in the market, Patel said.

The $4.3 million, sourced from BCTDA’s undesignated contingency funds, are “lodging tax revenues that were received and unspent in the operating fund in prior years,” BCTDA spokesperson Ashley Greenstein told the Citizen Times on May 30.

During the meeting, Patel emphasized that “marketing efforts must continue to keep our place in the market and keep our economy thriving” even as occupancy rates and sales tax revenues lag in the region.

Budget allocation details

Under the proposed $27.3 million operating budget, $19.4 million would be put toward marketing, around a $600,000 decrease from $20 million in 2024. At the same time, the proposed budget increases BCTDA salaries and benefits from $4.1 million to $4.4 million and partnership and destination management from $500,000 to $700,000.

Employee salary and benefits updates come as the BCTDA makes adjustments to fall in compliance with the Department of Labor overtime exemption updates and in consideration of MIT’s living wage data for Buncombe County, Vice President of Culture and Business Affairs Jennifer Kass-Green said during the meeting.

Woodfin Wave funding update

Separate from the budget discussion, the BCTDA board voted to adjust disbursements and scheduling for the Woodfin Whitewater Wave project, which is part of the greater Woodfin Greenway and Blueway expansion project.

The BCTDA has provided a total of $8.3 million in funding for a Woodfin project that is expected to bring “1,000s” of daily visitors to the region while providing a unique recreation opportunity for the area’s canoeists, kayakers, and playboaters.

Woodfin Wave completion timeline

The wave element of the project, not including a Riverside Park expansion, is expected to be finished by the end of 2024, Woodfin Mayor Jim McAlister recently told the Citizen Times. The BCTDA recommended adding the town of Woodfin as a party to the Woodfin Greenway and Blueway contract to allow the town to directly receive funding for the wave.

President and CEO of Explore Asheville Vic Isley said the urgency for funding changes comes amid recent movement on the project, with construction expected to take place between June and September when the river’s water levels are lower.

“They expect the wave to be completed by September,” Explore Asheville Director of Grants Tiffany Thacker said during the meeting.

Conclusion

The proposed budget adjustments and funding updates by the Buncombe TDA signal a commitment to enhancing tourism offerings in the region while also supporting community capital projects. The Woodfin Whitewater Wave project, in particular, represents a significant investment in recreational infrastructure that is expected to attract a wide range of outdoor enthusiasts to the area.

Overall, the focus on strategic budget allocations and project timelines underscores the BCTDA’s efforts to adapt to changing market dynamics and ensure the continued growth and success of the tourism industry in Buncombe County.