From Staff Reports

ASHEVILLE, N.C. — Asheville residents packed an Asheville City Council council meeting on Feb. 24, “voicing concerns about possible tax increases, service cuts and what the roughly $30 million projected gap” in the city's General Fund for the next fiscal year “could mean for the community,” Asheville television station WLOS (News 13) reported later on Feb. 24.

To that end, a continuing refrain from many of the speakers was “find other solutions” other than raising taxes and fees. And some offered solutions for resolving the budget gap. 

Regarding the city’s looming massive deficit, AI Overview stated on March 1, “Asheville’s projected $30 million budget gap for the 2026–2027 fiscal year (recently updated to $26.4 million as of February 2026) is primarily attributed to the exhaustion of “one-time fixes” used to balance the previous budget, rising operational costs and the financial after-effects of Hurricane Helene...

“City officials have stated that closing the gap will likely require a combination of property tax increases (estimated at a 5.8 percent rise), new fees and potential service reductions. Public hearings are ongoing, with the next major session scheduled for May 26...

“While it is one of the largest in modern times, it is not the largest in the city’s entire history. The historical record for financial crises in Asheville belongs to the Great Depression era, when the city held the highest per-capita debt in the country, leading to decades of financial stagnation,” AI Overview noted. 

Among those speaking at the hearing was former vice mayor and local business leader Chris Peterson, who, during a three-minute public comment period, accused council of deception in its handling of its projected collosal budget deficit.  

As for his allegation of a deception, Petterson accused council of hiding a projected $26.4 million to $30 million budget gap for the 2026–27 fiscal year. He claimed officials had been “holding secret meetings” and “swept it under the rug” rather than being honest with the public.

In his scolding of council, Peterson’s other primary points included:

• He argued that the city has “way too many people” and is overspending on wages and benefits (totaling roughly $134 million), while property tax revenue is expected to decrease due to recent flood damage.

• Peterson demanded a freeze on all future projects, including parks and new buildings, insisting the city should focus solely on storm recovery and supporting small businesses.

• He called for a forensic audit of both the city and county books, alleging that residents have been “fleeced” by current leadership.

• He specifically targeted Mayor Esther Manheimer, questioning the transparency of federal disaster recovery funds she claimed to have secured and labeling the governing body as the “Democratic Communist Party” for its refusal to cut government spending.

Others at the meeting expressed concern over the massive budget gap, urging officials to avoid property tax increases, support living wages ($24.10/hour), and limit spending on police technology. 

Key concerns included the following: 

• Budget  and taxes: Residents questioned why tax increases are the first resort to fix budget gaps, with suggestions to explore alternative revenue, such as fees on developers.

• Safety and spending: Public concern was voiced regarding the funding of Asheville Police Department’s drone program and “Flock” cameras.

• Sustainability and infrastructure: Speakers emphasized the importance of funding, sustainability and transit.

• Labor and equity: Calls for city employees to be paid a “living wage” of $24.10 per hour. 

The meeting marked the start of the FY 2026-27 budget discussions, with final approval anticipated in June.