City Council proposes $256M budget for fiscal year after storm challenges

Asheville City Council unveiled a proposed budget of $256 million for the upcoming fiscal year, marking a 2.1% increase from the current year. The general fund, which is the city's largest operating budget, will see a $2.9 million boost, translating to a 1.6% rise. City officials emphasized the challenges faced during the budgeting process, particularly following the financial strains caused by Tropical Storm Helene.

City Manager Tony McNutt clarified that no new city-funded positions will be added in the proposed budget. Instead, the city will focus on managing unavoidable cost increases, primarily in healthcare and state retirement contributions. However, there may be grant-funded positions added to support programs like the Community Development Block Grant (CDBG) and FEMA reimbursements.

To balance the budget, the city plans to implement $5 million in reductions within the general fund and utilize funds from the street cut and transit funds. Additionally, a $5 million loan from the FEMA community disaster loan program will provide a one-time revenue source to help minimize property tax increases.

The budget also reflects ongoing investments aligned with council priorities, including continued support for reparations and a property tax mitigation program. Notably, funding for the second year of the downtown business improvement district is included to aid local economic recovery.

As the council prepares for the budget adoption next week, the focus remains on addressing the city's financial challenges while supporting essential community programs and infrastructure improvements.