ASHEVILLE, N.C. (828newsNOW) —

A slowdown in sales tax growth, dwindling Covid-era funding and persistent inflation have created financial “headwinds” for the City of Asheville, prompting officials to consider dipping into savings to balance the 2024-25 budget, avoid property tax hikes and advance some council priorities.

That’s the overall message as City Manager Debra D. Campbell prepares to submit a proposed $249.6 million budget for the upcoming 2025 fiscal year during a City Council meeting at 5 p.m. Tuesday, May 14, at City Hall in downtown Asheville.

The proposal reflects a sharp shift from the prior several years, when a post-pandemic boom in sales tax revenue, combined with federal relief funds from the American Rescue Plan Act (ARPA), fueled growth in city spending.

As Campbell wrote in a proposed budget message to council, “The fiscal year (FY) 2024-25 Proposed Budget has been prepared under different financial circumstances. The unprecedented sales tax growth that we saw over the prior three years has ended, and one-time ARPA funding has been almost completely utilized.”

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Rather than seeking a property tax increase, the proposal calls for “strategic utilization of fund balance” to balance the budget and fund council priorities. That means dipping into an unassigned fund balance this year, taking it sligltly below the 15 percent level that the council typically maintains by policy.

The proposed budget to be discussed on Tuesday and presented at a public hearing May 28 recommends a general salary increase of 4.11 percent for all permanent city employees — down slightly from the prior year.

It would continue funding for essential community services and initiatives, even with rising costs.

And it also would add more than two dozen new positions, including:

  • Seven new positions in the Community Responder program “to assist persons that are unsheltered and/or experiencing addiction or behavioral issues. The program proactively addresses concerns and quality of life issues before they escalate, and the cost will be partially offset by Opioid Settlement funding.”
  • Reclassifying two vacant sworn police officer positions to create two drone operator positions.
  • One new position in trash and recycling collection to support additional routes.
  • An events manager position to oversee and support events at the Civic Center.
  • Five new positions in water production and distribution, including a capital improvement project manager and a four-person crew to improve response times for emergency water main breaks.
  • Five new preventative maintenance positions related to stormwater infrastructure.
  • Two new positions for stormwater plan review.

Meanwhile, it recommends seeking a $75 million General Obligation (GO) bond referendum in November 2024 to provide: $25 million for affordable housing; $20 million for transportation; $15 million for parks and recreation; and $15 million for public safety.

Based on preliminary discussion during an agenda briefing teleconference last week, there could be additional discussion on adding some of the new positions at a time when the city must dip into fund balances.

“I need to know we can sustain it over many years,” Council member Sage Turner asked.

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