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Asheville staff flags $5.4M general‑fund gap, $41.5M in recovery spending; council asked to weigh use of OPEB and possible tax rate options
Summary
City finance staff told council the cost of responding to Tropical Storm Helene so far is about $41.5 million (largely expected to be FEMA‑reimbursed) but forecast revenue shortfalls could leave a $5.4 million general‑fund gap and a $7.6 million water fund gap. Staff proposed $5 million in near‑term savings and outlined policy choices including pausing an OPEB contribution and modeling property tax scenarios for FY26.
City finance staff briefed the Asheville City Council retreat on an uncertain fiscal outlook after Tropical Storm Helene, saying the city has spent or contracted about $41.5 million for initial recovery but still faces meaningful revenue shortfalls in multiple funds.
Tony McDowell, finance director, told the council that ‘‘we do expect most of that, spending to be covered 100% by FEMA,’’ while warning that FEMA will not reimburse lost revenues. Lindsey Spangler, the city’s budget and performance manager, said lagged sales‑tax reporting and tourism declines left staff projecting a $5.4 million shortfall in the general fund and a $7.6 million deficit in the water resources fund this fiscal year.
Why it matters: While recovery spending to date is principally reimbursable, the city’s operating budget depends heavily on…
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