Hendersonville aldermen approve first reading of FY2026 budget after contentious pay-plan fight

Hendersonville's Board of Mayor and Aldermen voted on first reading May 27 to adopt the city's fiscal year 2026 budget (Ordinance 25-O-9) with an amended employee pay plan commonly called "scenario 5." The vote to adopt the amendment replacing the mayor's salary language passed after a series of motions and roll-call votes; the ordinance as amended cleared first reading and the board set second reading for June 24.

The pay amendment was introduced by Alderman Autumn Robertson and sought to change Section 13 of the proposed budget to the scenario she described as prioritizing “the year of the employee.” The adopted amendment provides, among other elements discussed at length, a 2% cost-of-living adjustment for all employees, a 2.5% merit component for eligible employees and a supplemental 6% increase targeted to employees up through pay grade 25 who were not covered by a prior midyear adjustment.

Why it matters: The budget debate centered on whether to direct larger increases to first responders and mid-level supervisory positions identified in a 2023 pay study, or to spread higher increases more broadly across city staff. Proponents said the adopted amendment addresses pay gaps identified in the city's market comparisons while keeping the budget balanced without raising property taxes; opponents warned the plan still forces the city to draw down reserves and could create morale problems among employees who received smaller increases.

Key facts and votes - The board debated multiple salary scenarios at length. Council members tested a substitute amendment to adopt an alternate pay scenario (commonly referenced as "option 1"), but that substitute failed on the floor. The board then approved the Robertson amendment (scenario 5) by roll call; the superintendent recorded the tally for that motion as 8-5 in favor. After that amendment was adopted, the board voted to approve first reading of the budget ordinance as amended and kept the public second-reading date of June 24. - Alderman Autumn Robertson, who moved the amendment, described the budget's focus on employees: "If I could entitle the 2026 budget, I would entitle it the year of the employee." She also noted the budget would spend down part of the city's unassigned fund balance to pay for raises. - Alderman Robertson and staff said the package represents the largest across-the-board pay raise in the city's history when the midyear adjustments are annualized.

What the pay changes do - All employees receive a 2% COLA and a 2.5% merit increase if eligible (the city estimates most employees qualify for merit steps). - For employees up to pay grade 25 who did not get midyear raises, an additional 6% supplemental increase applies. - The amendment includes a limited compression/correction allowance: where a subordinate's new base pay would exceed a supervisor's base, staff are authorized to adjust the lower-paid supervisor up within the existing pay grade for parity (subject to limits described in the amendment).

Budget trade-offs and context - Board discussion acknowledged the adopted package reduces the city's unassigned fund balance; staff projections presented during the hearing showed the board would be spending down reserves in FY2026 and that FY2027 may be constrained if revenues remain flat. - Council members repeatedly noted the budget does not raise property taxes. Sales-tax and PIP (pip) fund projections showed little or no growth in the coming year, which informed several aldermen' concerns about future flexibility.

Voices from the meeting - Alderman Autumn Robertson (mover of the amendment): "If I could entitle the 2026 budget, I would entitle it the year of the employee." She emphasized the amendment's intent to address pay study gaps for mid-level and supervisory positions. - Several aldermen urged that additional salary concerns be revisited at midyear should revenues allow further adjustments.

Next steps - The ordinance (25-O-9) will return for second reading and final action on June 24. Staff and aldermen said they will revisit pay issues at midyear if revenue performance improves.

Sources and provenance: The board discussed and voted on Ordinance 25-O-9 during the May 27 BOMA meeting; the pay scenarios and votes are recorded on the meeting transcript.