Raises for employees and maintaining core services are the top priorities in the proposed City of Asheville budget shared at last night’s City Council meeting.
This $256 million proposed budget would give most city employees a 3% raise, with additional increases for some firefighters and police officers – but the city can't afford to do that unless they make cuts or bring in more money.
City Manager Debra Campbell suggested the extra revenue come from taxpayers – by way of a 3.26-cent property tax rate increase. The hike would mean about $114 extra dollars a year for people with a home worth $350,000.
If approved, this would be the second consecutive property tax increase from the city.
Last year, the city struggled with flat revenue growth and inflation which led to an increase in health care, retirement and personnel costs. Council members decided to balance the budget – which included staff raises – by raising property taxes and using $7.8 million from Asheville’s fund balance.
This year, the city is challenged by the economic fallout from Hurricane Helene, which slowed its main sources of revenue – sales and property taxes. Property tax revenue, which usually grows by 1.5-2%, is expected to decrease by 1%, or $750,000, according to the city’s Finance Manager Tony McDowell. Sales tax is projected to decrease by $2 million as well, he said.
Using the fund balance is not an option this time around, because that could damage the city’s credit rating, McDowell added.
Salary adjustments for city workers
The 120-page proposal also provides an increase for city employees who make less than $58,000. In lieu of the 3% raise, those staff would receive a flat salary increase of $1,740. bringing all but 84 employees up to Just Economics’ living wage rate of $48,152.
Those 84 employees include some sanitation workers, parking attendants, administrative assistants and city council members.
In addition to raises, the budget would also support changes in pay structure for the city’s more than 570 firefighters and police officers.
For firefighters, the city took the first steps to implementing a “fourth shift,” which would reduce the number of shifts, and thereby hours, that firefighters work each week. Currently, the average firefighter works 56 hours per week, meaning that the firefighters make a lower hourly rate than other city workers, who only have to work 40 hours per week.
Firefighters work these additional hours in order to provide around-the-clock emergency response.
The city proposed a $205,000 budget increase – beyond the 3% raises – that would promote several new firefighters to supervisory roles, because more supervisors are needed for a larger number of shifts.
The city’s eventual goal is to reduce firefighters weekly hours to 42 per week, which would increase their hourly wages.
The police department would see its pay structure include a new pay plan and career ladder for sworn employees – intended to help with recruitment and retention – at a cost of $1.1 million. Beyond pay increases, the police budget includes $72,000 for the leasing of a new substation in Tanger Outlets and $33,600 for licensing new FLOCK system cameras.
Tightening belts?
Not everyone is comfortable with raising taxes. Council Member Kim Roney said she would like to consider making cuts to spending instead.
“I’m wrestling with deep concern in the community about property tax increases while we’re recovering from Helene,” she said. “I acknowledge that property tax increases impact businesses and homeowners while disproportionately impacting residential and commercial renters.”
Council Member Sage Turner also expressed reservations with the tax increase, especially since Buncombe County is also considering a tax rate increase of the same size.
“I think there’s some more discussions to be had, at least for me,” she said. “I’m not quite comfortable yet with both the city and county facing these levels of increase for our residents.”
The city has already cut $5 million with reductions in employee benefits, some grant programs, and its annual housing trust fund allocation, among other things.
Neither Roney or Turner offered a specific suggestion of where the city could make cuts.
What’s next?
There will be a public hearing on the budget at council’s May 27 meeting. Council votes on the proposed budget on June 10.
According to state law, the budget must be adopted no later than July 1.
Another tidbit
- As part of a 26-item consent agenda, council members authorized $135,074 in previously allocated funds to support Buncombe County’s rental assistance program. The city also extended a $11.8 million transit contract with RATPDev USA for another year, despite the agency’s ongoing staffing shortages.
Every second and fourth Tuesday, Asheville City Council meets at the Council Chamber on the 2nd Floor of City Hall, 70 Court Plaza beginning at 5 p.m. See the full recording of the May 13 meeting and the agenda.
