Hendersonville public-safety committee hears draft 2026 operating budget with roughly $800,000 shortfall

Hendersonville’s Public Safety Committee on April 8 reviewed a draft fiscal 2026 operating budget that staff said remains approximately $800,000 short of a balanced operating plan.

Committee chair and budget staff presented revenue adjustments and expense drivers and said most remaining reductions would affect operations. “We’re still not balanced in the operating budget. There’s some things we’ll talk about, but right now, we’re at $800,000 approximately in the red,” Committee member Jesse said during the meeting.

Tamara, a budget staff member, summarized recent revenue adjustments: “We’ve increased the parks revenue by 25,000 and then reduced the beer and liquor tax revenue by 25,000.” She also laid out other small revenue changes and noted that sales-tax receipts are running slightly ahead of last year, by roughly $73,000 to date.

The committee was told public-safety spending dominates the proposed operating budget: about 53% of the general fund operating budget is for police and fire. Staff attributed most of the overall operating increase to salary and benefit changes, including prior midyear raises. The presentation showed the town’s operating revenues were estimated up about 2.3% versus the current fiscal year and total departmental operating budgets rising about 3.78% overall, with much of that increase concentrated in police and fire.

Staff identified four largely nondiscretionary cost drivers that together account for about $1 million in pressure on the draft budget: an estimated nearly $200,000 increase in the Emergency Communications Center (ECC) charge, roughly $100,000 higher property-liability insurance, an estimated $600,000 increase in employee health benefits, and a pension contribution (TCRS) rate change from 14.38% to 14.64% that staff said adds about $80,000.

On health benefits, Tamara described recent insurer estimates and options under consideration: “preliminary, you’re looking at a 30% increase.” Staff said the draft currently assumes a 15% increase but that the city is exploring switching to the state health plan and other plan designs to reduce that cost toward a hoped-for single-digit increase.

Police and fire staffing and equipment needs also shaped the budget. Police staffing assumptions include a significant number of vacancies; staff said 10 vacancies are budgeted to be filled for only half the year as a cost-control measure. The police budget includes 13 replacement vehicles: 10 budgeted in the PIP fund and three to be purchased from the drug fund. The committee previously adopted a fleet-management resolution that assumed about 20 vehicles per year, but staff said that projection has been scaled back.

A grant-funded mental-health co-responder who has ridden with officers has been valuable, staff said. A police department representative asked the city to contribute toward keeping that position: “this expenditure amounts to, 40% of their total operating, I mean, of their costs for that employee. They’re going to cover 60%,” the representative said; the request was described as an up-to amount (not to be exceeded).

Public-safety capital needs include paving ($7.5 million proposed for paving across several funds, including about $2.7 million from the general fund and $3.7 million from the PIP fund), replacement of a fire engine, replacement hose and hose racks, dive-team dry suits, and a set of replacement vehicles for police. Staff cautioned that lead times for fire apparatus can be long — the engine lead time was described in the presentation as roughly 22–24 months and ladder/truck apparatus as roughly 32–36 months.

Staff said investment income the city expects to receive exceeds interest on outstanding debt this year (an estimated roughly $1.3 million in investment income versus interest payments), and next year that investment income projection drops toward about $1.0 million. The draft general fund operating budget as presented shows a deficit just over $800,000; staff emphasized they will continue refining the draft and that the goal is to present a balanced operating budget to the full board.

The committee did not adopt the operating budget at this meeting. Staff said a second budget workshop is scheduled for May 5 to review new and continuing projects, special-revenue fund balances, and operating budgets with updated figures.

Votes at the meeting were procedural: the committee approved the meeting agenda and the March 11 minutes and later voted to adjourn. There were no formal votes on the draft fiscal 2026 operating budget during the session.