Council holds public hearing on FY2025–26 budget including 3.26¢ tax‑rate increase and pay plan changes

City staff presented an overview of the proposed fiscal year 2025–26 budget at a May 27 public hearing, outlining a $256.1 million spending plan that includes a 3.26¢ property tax‑rate increase, a 3% hybrid compensation adjustment and proposals related to public safety pay and staffing.

Budget staff said the proposal uses $5 million in identified savings measures, one‑time revenue sources including an award from the FEMA Community Disaster Loan program, and transfers from internal fund balances to reduce the required tax‑rate increase from an earlier projection of 6.3¢ to the proposed 3.26¢. Finance Director Tony McDowell and budget presenter Lindsay Spangler outlined revenue pressures — a projected 1% decline in the property tax base and a projected 5% reduction in sales tax receipts — and described unavoidable cost increases for personnel, healthcare and retirement contributions.

The proposed compensation package is a hybrid approach: employees above the median salary (about $58,000) would receive a 3% increase; employees below the median would receive a flat-dollar increase ($17.40 per pay period as presented) intended to lift lower‑paid staff. The budget also proposes a police pay‑structure transition to address compression and a 3% pay increase for fire personnel; staff said police compression adjustments and a police career ladder were included in the plan for the department.

The budget includes an initial allocation of $205,000 to establish a fourth shift for the fire department, a multi‑year intention to reduce firefighters’ weekly hours from 56 to 42 but does not include adding the new full‑time firefighter positions needed to reach the reduced‑hours goal in the first year. The proposal did include raises for some firefighters and procedural steps toward the shift restructuring; speakers at the hearing urged faster hiring and larger raises to retain staff.

Public commenters included representatives of the Asheville Police Benevolent Association and the Asheville Firefighters Association, who endorsed a clearer police pay plan and urged quicker implementation or additional positions to enact a fourth shift. Community speakers raised concerns about affordability, climate and living wages; Sunrise Movement and living‑wage advocates asked for larger sustainability and transit investments and urged the council to align budget priorities with climate goals.

Councilors discussed potential trade‑offs and cuts to fund firefighter positions, noting limits on raising the property tax rate and the temporary nature of some one‑time revenues. The council left the public hearing open for input and scheduled final action on the budget for the June 10 meeting.