From Staff Reports

ASHEVILLE, N.C. — Asheville City Council on June 9 voted 4-3 to approve a $275.8 million budget for fiscal year 2026-27 with a property tax increase nearly 5 cents above revenue neutral.

Specifically, the plan required a property tax rate of 37.69 cents per $100 of assessed valuation — about 4.8 cents above the revenue-neutral rate — to cover rising costs, employee compensation, and essential services.

Voting against the budget were Vice Mayor S. Antanette Mosley and councilwomen Kim Roney and Sage Turner.

The divided vote followed a tense debate that exposed stark differences over the city’s financial trajectory, making it a key flashpoint ahead of the fall mayoral election

The primary drivers of the budget gap and subsequent tax increase included the following:

• Employee retention and compensation: City leadership heavily emphasized that a major chunk of the budget went toward adequately paying valuable city staff and keeping pace with Asheville’s high cost of living.

• Rising debt service: Significant cost increases stemmed from debt on $80 million in voter-approved bonds for parks, affordable housing, and public safety.

• Limited revenue tools: Mayor Esther Manheimer noted that North Carolina state laws severely restrict Asheville’s ability to raise revenue through local options,such as food/beverage taxes or sales taxes for transit.

• Cost-cutting measures: To minimize the burden on taxpayers, City Council and City Manager DK Wesley implemented $9 million in budget cuts before the final vote. 

These measures included the following:

• Eliminating more than 16 vacant city positions.

• Reducing community center hours to pre-COVID levels.

• Scaling back median, guardrail, and lawn maintenance.

Regarding the 4-3 divide and debate, the budget plan ultimately passed on a 4-3 vote, but exposed deep political friction as follows:

•:The opposition: Vice Mayor Antanette Mosley, alongside councilwomen Sage Turner and Kim Roney, dissented. Turner and Mosley advocated for an “austere” budget, citing long-term projections that predicted increasing structural deficits over the next five years.

Further, the three councilwomen voting against the budget argued that the city needs stricter fiscal discipline instead of relying on tax increases.

• The supporters: Mayor Esther Manheimer, joined by council members Bo Hess, Sheneika Smith and Maggie Ullman, voted in favor of the budget. Supporters framed the tax boost as a necessary, modest move to maintain core services and manage necessary debt, compromising during a recess to reinstate 1 percent 401(k) contributions for staff.

“Because Mayor Manheimer and Councilwoman Kim Roney — who opposed the budget — are direct opponents in the upcoming mayoral election, the contentious budget fight served as an early preview of the fall political race,” AI Overview stated.