Buncombe County officials outline fund‑balance risks, Helene recovery needs and 2030 strategic priorities

Buncombe County staff told commissioners at a budget workshop that fallout from Tropical Storm Helene, combined with weaker-than-expected property and sales tax receipts, has reduced available reserves and will require steps to replenish the fund balance while recovery work continues.

Heather Parkinson, a budget office staffer, opened the session with an exercise intended to show how new priorities or emergencies require trade-offs in an operating budget. “For every action, there is a budgetary reaction,” Parkinson said.

The review that followed detailed revenue and expenditure projections for fiscal 2025 and planning considerations for the county's 2027 and 2030 budget and strategic planning cycles. John (staff member) summarized the fiscal year's shock, saying, “This is easily the most challenging budget year in my tenure.”

Why it matters: County officials cautioned that available reserves are near policy minimums and that some disaster costs may not be reimbursed, which would force the county to cover remaining expenses. Commissioners and staff discussed using additional state cash-flow loans, pursuing FEMA and other reimbursements, establishing a capital reserve and prioritizing replenishment of fund balance before adopting long-term strategic commitments.

Most current projections and recovery funding County staff told the board they previously estimated between $15 million and $25 million in potential lost revenue for fiscal 2025 after the disaster, and that midyear expenditure reductions were implemented to manage the impact. Later projections presented to the board showed expenditures running about $17.3 million under budget and revenues about $8.4 million under, which staff said would result in roughly $5.9 million of fund‑balance use and leave about 15.1% of fund balance before assigning Helene-related expenses. After assigning Helene expenses, staff projected available fund balance of about 11.8%.

Staff warned that prior,…