ASHEVILLE, N.C. (828newsNOW) — Buncombe County homeowners could see a property tax increase as part of a proposed $435 million budget aimed at repairing the lingering damage from Tropical Storm Helene and stabilizing county finances.
County Manager Avril Pinder unveiled the recommended fiscal 2026 budget to commissioners on May 6, calling for a 3.26-cent property tax increase that would add about $114 a year to the bill for a home valued at $350,000. The increase is expected to generate $17.1 million and help close a budget gap without dipping into reserves.
The plan prioritizes recovery, fiscal responsibility and stability as the county continues to deal with the storm’s destruction. More than 300 homes were destroyed, hundreds of bridges were damaged and more than 8,000 housing units still need repairs. County staff have contributed more than 180,000 hours to emergency response, with help from 38 states, county officials said.
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Economic landscape and fiscal challenges
While unemployment surged to nearly 11 percent in late 2024, it improved to just more than 5 percent as of March 2025, according to a county news release. However, ongoing revenue pressures, including declines in sales and occupancy taxes, underscore the need for conservative financial planning.
The FY2026 recommended budget includes:
- 1.5% decrease in operational expenditures
- No new positions, with only two reclassifications
- 3.09% cost-of-living adjustment (COLA) for employees
- No use of fund balance to support operations
- 55.02 cent property tax rate (up from 51.76 cents)
Education investments
Education is the county’s largest funding priority, with $121.8 million allocated — nearly 28 percent of total expenditures. Over the past four years, education funding has increased $23.5 million.
The FY2026 recommended education budgets have been reduced by the unrestricted revenue rate — down 3.49 percent from the FY2025 adopted budget:
- A-B Tech – $8.4 million, down from the FY2025 amended budget of $8.7 million
- Asheville City Schools – $17.3 million, up from the FY2025 amended budget of 17.2 million
- Buncombe County Schools – $95.8 million, up from the FY2025 amended budget of $95.3 million
Public safety, human services and more
Recommended General Fund budgets also include:
- Public Safety (including Sheriff’s Office, detention center, community paramedics, EMS, and more) – $99 million
- Human Services (including Medicaid, child support, aging & adult services, public health, veterans services, and more) – $97 million
- General Government (including elections, Register of Deeds, tax collection, information technology, and more) – $66 million
- Debt – $18 million
- Cultural and Recreational (including parks, libraries, and more) – $12 million
- Interfund Transfers – $9 million (including Early Childhood Education funding, Transportation, and Conservation Easements)
Planning for the future
The county plans to use the upcoming 2026 property reappraisal to evaluate and potentially reset tax rates. While the projected FY2026 ending fund balance sits below the 15 percent policy threshold at 12.8%, the county is not drawing on reserves and is maintaining compliance with state financial regulations.
Other funds
The recommended budget provides $624,058,019 in total expenditures across all operating funds.
Other annual funds include:
- 911 Special Revenue Fund budget of $728,900
- Opioid Settlement Fund budget of $3,218,194
- Tax Reappraisal Reserve Fund budget of $703,280
- Solid Waste Enterprise Fund budget of $16,237,293
- Insurance and Benefits Fund budget of $48,242,165
Budget timeline
- May 20: Public Hearing
- June 3: Final Budget Adoption