City Council approves $256M budget with tax increase and employee pay raises

The Asheville City Council meeting on May 27, 2025, focused primarily on the proposed budget for the upcoming fiscal year, highlighting significant financial adjustments and community engagement efforts. The budget proposal amounts to $256.1 million, reflecting a 2% increase from the previous year, and includes a 3.26¢ property tax rate increase aimed at balancing revenues and expenses.

City officials reported achieving $5 million in savings through various cost-cutting measures, which were not intended to reduce services. The budget also incorporates a 3% compensation increase for city staff, with specific adjustments for public safety personnel. Notably, the police department will transition to a new pay structure to address salary compression issues, while the fire department will see the establishment of a fourth shift, aimed at reducing firefighter hours from 56 to 42 per week.

The council discussed the challenges faced in revenue generation, particularly a projected 1% decrease in property tax revenue and a 5% decrease in sales tax revenue due to ongoing economic uncertainties. To mitigate these challenges, the city is utilizing one-time revenue sources, including a $5 million loan from FEMA and excess fund balances from various departments.

The meeting also provided a timeline for the budget process, with public comments being collected throughout the spring and a final decision expected at the next council meeting on June 10. Community engagement included a recovery survey that garnered nearly 7,000 responses, indicating a strong public interest in the budgetary process.

In conclusion, the proposed budget reflects the city's commitment to maintaining essential services while navigating financial challenges. The council's proactive approach to community involvement and fiscal responsibility aims to ensure a balanced budget and a healthy fund balance for future needs.