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Hendersonville tweaks FY2026-27 budget: RTA subscription moved to reserve; rainy-day transfer discussion deferred
Summary
On first reading of the FY2026-27 budget, the board unanimously approved an amendment to pay a $6,000 RTA subscription fee from an RTA reserve rather than the general fund. Council debated but deferred a proposed $1.75 million transfer from the infrastructure reserve to the rainy-day fund for later review by finance staff.
The Board of Mayor and Aldermen conducted the first reading of the fiscal year 2026–27 budget on May 26 and approved a pair of budget adjustments and related discussions.
Alderman Sassy moved — and the council unanimously approved — an amendment to remove a roughly $6,000 RTA (Regional Transportation Authority) subscription/membership charge from the central services budget and direct it to be paid from the city’s RTA reserve. City staff explained the reserve holds about $215,000 and the city has been paying only a smaller membership portion of the RTA cost in recent years; RTA staff said that, if the city stopped paying the larger part of the annual fee, the reserve could cover several years of service at current rates. “We do have a surplus of approximately $215,000,” said Jesse, who described RTA account balances and said the reserve could fund the subscription for roughly five years if necessary.
A second budget discussion focused on the city’s rainy-day reserve, which Alderman Sassy said has been depleted from roughly $2.4 million to about $400,000 after third-party storm cleanup following recent severe weather. She proposed moving $1.75 million from the infrastructure reserve into the rainy-day fund to restore balance. Council members and staff discussed alternatives, including rebalancing unassigned fund balances or waiting until the fiscal-year close to determine final surplus levels; staff also noted that some storm-related costs are expected to be reimbursed by FEMA. No formal transfer was made that evening; councilmembers asked finance staff and relevant committees to review the fund balance policy and bring options back for consideration.
Why it matters: The $6,000 change is a small technical budget amendment that keeps a transit membership on an existing reserve rather than the operating budget; the rainy-day discussion concerns the city’s contingency planning following costly storm cleanup and the preferred way to preserve reserves for emergencies.
Other budget matters and committee reports: The council passed the budget on first reading unanimously and heard reports that storm-debris cleanup cost about $2.5 million (Public Works chair reported about 75% is expected to be reimbursed through federal programs but reimbursement may take years). Capital Projects chair reviewed the city’s TIP/RTP submissions for $86–90 million in projects regionally, noting a potential city 20% share of about $17 million if all projects are funded. Finance reported nearly 90% resolution of a disputed county adequate-facilities fee issue with developers.
What’s next: The budget ordinance will return for second reading with any final numeric adjustments; staff will work with finance and capital committees to consider reserve rebalancing options and report back.
