Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Bid Revenue And Use topic
No spam. Unsubscribe anytime.
Unexpected sales-tax revenue to BID could restore holiday events and fund downtown projects, staff says
Summary
Staff told Council that county revaluation and state distribution rules have produced unexpected sales-tax receipts for the downtown Business Improvement District (BID). Staff proposes recording that revenue in the BID fund to restore holiday events and the AVL Arts Grant program and to explore use of remaining funds for downtown priorities including public safety or rate reduction for businesses.
Tony McDowell, finance director, reviewed the Asheville Downtown Improvement District's finances and said the BID ad valorem levy generates about $1.3 million today under the existing 8.77-cent levy. He told Council the county's ad valorem distribution method and a state update produced approximately $177,000 in BID-related sales-tax receipts so far during the fiscal year and staff projects annual sales-tax receipts in the BID fund of roughly $400,000'$500,000.
McDowell and other staff recommended recording that sales-tax revenue in the BID fund and using it for BID-authorized purposes. Staff proposed using part of the additional revenue to restore downtown holiday events and the AVL Arts Grant program to the FY27 budget and to return to Council with options for allocating remaining funds. "We should record this revenue in the BID fund and use it for the same purposes that were adopted as part of the BID fund back in 2025," staff said.
Council questions focused on fairness and flexibility: members asked whether property owners or businesses in the BID could see higher bills and whether sales-tax receipts could be used for public-safety additions downtown. Staff explained the state statute governing municipal service districts restricts ad valorem (property-tax) BID revenue to uses within the district and to supplement, not supplant, existing city services; sales-tax receipts that flow into the BID fund due to the county/state distribution have somewhat more flexibility but still must be used within the BID geography for authorized municipal purposes. Staff said the extra revenue could, on a recurring basis, support recurring services such as enhanced cleaning and safety, or it could be used to reduce the BID levy or fund targeted efforts such as coordinated APD downtown presence, but recommended returning with concrete operational options.
Next steps: staff will finalize the BID's revenue-neutral calculation and include the BID approach in the manager's proposed budget, then bring back options to the Council after coordination with BID leadership and downtown stakeholders.
