Finance Director McDowell presents Asheville budget focusing on recovery and fiscal responsibility

The Asheville City Council meeting on May 13, 2025, focused primarily on the presentation of the proposed budget for the upcoming fiscal year. Finance Director Tony McDowell, along with his team, provided an overview of the budget development process and highlighted key components of the proposal.

McDowell emphasized that the budget process began several months ago, with multiple work sessions held in March and April to gather input from council members. The proposed budget includes a 3% hybrid compensation option for city employees, adjustments for police department salary compression, and plans to implement a new supervisory structure in the fire department. These measures aim to enhance service delivery while addressing employee compensation.

A significant aspect of the budget is the inclusion of a $5 million loan from FEMA, designated as a community disaster loan. This funding will support essential municipal services in the fiscal year 2025-2026. To balance the budget while maintaining a healthy fund balance, the proposal also includes a property tax rate increase of 3.26 cents.

The budget outlines a five-year capital improvement program, which encompasses both regular capital projects and $80 million in bonds approved by voters last November. McDowell noted that this year's budget is unique due to the financial constraints following Hurricane Helene, which necessitated a focus on maintaining core services without introducing new programs or positions.

The council will deliberate on the proposed budget over the next month, with a public hearing scheduled in two weeks. Final adoption of the budget is set for June 10, 2025. The meeting underscored the city's commitment to fiscal responsibility and community recovery as it navigates the challenges posed by recent disasters.