On Tuesday, May 13, the Asheville City Council heard the recommended fiscal year (FY) 2026 budget. A public hearing is scheduled for Tuesday, May 27, ahead of the council’s final vote on Tuesday, June 10.
Let’s take a look at where those recommended funds are going.
Note: The 2026 fiscal year begins on Tuesday, July 1, and runs through Tuesday, June 30, 2026.
A few quick facts:
- The city’s proposed budget for FY2026 is $256.08 million — a 2.1% increase from last year.
- The budget proposes a 3.26-cent property tax increase to fund salary increases for city staff. For taxpayers who own a home valued at $350,000, it would cost an additional $114 annually.
- Property and sales taxes are the largest sources of revenue for the city and staff expect decreases in both areas due to impacts from Helene.
- Speaking of Helene, the $24 million and counting that the city has spent on emergency response (including personnel, operations, and capital) is expected to be reimbursed by FEMA’s Public Assistance program. To date, the city has received nearly $10 million from the program.
The key takeaways
A proposed 3.26-cent property tax rate increase would fund city staff salary increases and maintain the necessary 15% fund balance. The salary increases include a 3.0% increase for staff above the $58,000 median pay and a flat increase of $1,740 for employees below the median.
In a message at the start of the budget, City Manager Debra Campbell explains that the city’s investment in compensation and benefits is necessary to “remain competitive with our peers in the labor market.” The message also addresses an increase in the General Fund being used to cover “unavoidable cost increases” in healthcare and retirement programs, among other public-facing services.
More compensation adjustments include a new pay structure for police and firefighters, including a “fourth shift” for firefighters to reduce hours while increasing hourly wages. No new city government roles will be funded in the proposed FY26 budget.
What to expect
Want to keep digging into the numbers? City of Asheville’s Director of Finance Tony McDowell’s presentation gives a high-level overview, and the full proposed budget gives a detailed look.
Once you crunch the numbers, make your voice heard at the public hearing on Tuesday, May 27, in the council chambers.
