Finance committee reviews FY 2026 operating budget; staff identify roughly $800,000 structural shortfall

The Hendersonville Finance Committee on April 22 heard an overview of the proposed FY 2026 operating budget and discussed a roughly $800,000 operating shortfall that staff and the mayor are working to close before the next workshop.

Finance staff (presenter Jen) told the committee the proposed operating budget shows operating revenues increasing about 2.25% year over year while recommended operating expenditures increase by about 3.75%, leaving a structural imbalance. “Currently, as we sit, with this draft, we do have a deficit in our operating budget about just over $800,000,” the presenter said.

Key drivers the committee and staff identified were nondiscretionary increases: a roughly 12% increase in the emergency communications center (dispatch) estimate (~$200,000), an estimated $100,000 rise in property and liability insurance, a projected 15% increase in…