Asheville manager proposes FY 2025–26 budget with 3.26¢ tax-rate increase to cover compensation, recovery costs

City Manager Deborah Campbell and Finance Director Tony McDowell presented the city manager's proposed fiscal year 2025'026 operating budget to the Asheville City Council, asking the council to adopt a $256,080,000 plan that includes a recommended property tax-rate increase of 3.26 cents per $100 of assessed value.

The proposed budget, Campbell said, is balanced using a mix of operating revenue, one-time disaster recovery resources and a FEMA community disaster loan. "This proposed budget was prepared in accordance with North Carolina General Statute 159-11 and represents many months of work by staff throughout the organization and by council and the community," Campbell said. Finance Director Tony McDowell highlighted that the package includes a hybrid compensation adjustment and steps toward a fourth shift at the fire department.

The city projects a 2.1% increase in total spending compared with the current year and is asking homeowners with a $350,000 assessed value to expect an average annual tax increase of about $114, or roughly $9.50 per month. McDowell said the city plans a hybrid pay adjustment: a 3% increase for employees earning above the median of $58,000 and a flat $1,740 increase for those below that median;…