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Hendersonville council adopts FY2026–27 budget, holds tax rate at $0.52
Summary
Council adopted a $75.15 million FY2026–27 budget and related ordinances, choosing to hold the city tax rate at $0.52 per $100 of assessed value amid county tax increases and state-level uncertainties. Staff recommended a pay and classification study to address workforce competitiveness.
City staff presented the recommended fiscal year 2026–27 budget and council adopted it after a public hearing and brief discussion.
Staff reported a total budget of $75,150,992, emphasizing that external factors — the county’s 4.3¢ property-tax increase and an 18% cost-of-living adjustment approved for the sheriff’s office — could reduce the city’s ad valorem share and affect recruitment and retention. Staff projected an approximate $581,000 sales-tax revenue decrease beginning May 2027 tied to local tax-rate shifts and recommended a cautious approach.
Given those pressures, staff recommended keeping the tax rate unchanged at $0.52 per $100 of assessed value and conducting a pay and classification study to ensure compensation competitiveness; council members praised staff’s transparency and voted to adopt the recommended budget, several related ordinances and a pay and classification schedule. Council adopted the FY2026–27 budget ordinances by voice vote.
Next steps: staff will proceed with the pay and classification study and monitor state legislative developments and county-level tax changes that could affect future budgets.
