Buncombe budget primer: How the county will decide on post-Helene spending for the 2026 fiscal year
By Laura Hackett
April 16, 2025 at 11:35 AM EDT
The fallout from Hurricane Helene has had an unfortunate domino effect on the budgets of local government – and Buncombe County is no exception.
The near-halt of commerce during the 53-day Asheville water crisis, the destruction of residential and commercial property and precipitous drop in tourism sapped crucial revenue from the county, which largely relies on sales tax and property tax to make ends meet.
At the same time, the county must work to address a complicated recovery process that includes everything from housing issues and infrastructure needs to mental health issues.
Last year, Buncombe County’s total budget sat at around $626 million. This year, the total amount is still being calculated, but so far we know the general fund will sit around $413 million.
You might be wondering – where does it all go? And how do staffers and elected officials make decisions on how to spend it all?
Those important choices are happening right now, as the county determines its budget for the upcoming fiscal year, FY 2026, which runs July 1, 2025 through June 30, 2026.
Financial jargon and the municipal budget-making process can be rather befuddling – so we put together a guide dedicated to understanding taxes, spending and how you can provide input. Have a question we haven’t answered? Email us at lastnight@bpr.org.
Breaking down the basics…How much money is in the annual budget?
The budget changes every year based on revenue from property tax, sales tax, intergovernmental funding, various fees, charges and permits and other miscellaneous sources.
Last year, the county adopted a total budget of around $626 million. The budget is expected to be lower this year, due to the financial fallout from Hurricane Helene.
How is the money organized?
The county’s finances are organized into four main funds: General, Special Revenue, Enterprise and Internal Service.
County Manager Avril Pinder is responsible for assembling a proposed budget. The county’s budget department, run by John Hudson, assists the county manager by planning, preparing and monitoring the county’s budget for efficiency and performance.
Once the budget draft is proposed, it goes before the Buncombe County Board of Commissioners for final approval.
What is the timeline of the budget process?
The budget process usually kicks off in November when the county hosts its first budget retreat. This year, it started in January due to delays caused by Hurricane Helene. At the retreat, the county establishes the cost of delivering basic services and commissioners, along with full-time leaders, decide on new spending.
Then, the county holds work sessions to discuss the direction of the budget. Buncombe has already held one with a second scheduled for April 22 and a third scheduled for April 29. The latter will focus specifically on education and fire district funding.
At the May 6 commission meeting, Pinder will present the staff’s recommended budget.
There will be a public hearing and vote on May 20, when the commission provides feedback on the budget and residents get the opportunity to provide input.
A final vote is scheduled for June 3. According to state law, the budget must be adopted no later than July 1.
What if the county fails to pass a budget by July 1?
The county can still pay salaries, make debt payments and take care of other routine expenses.
(889x742, AR: 1.1981132075471699)
Where does the money come from? And where does it go?How does the county bring in revenue?
The majority of the county’s general fund revenue comes from property tax, intergovernmental funds and sales tax. This year, a total of $413 million in revenue is projected to be supported via these major sources:
The county has four local sales taxes. In total, these represent a 2.25% tax. To learn more about each, start here with an N.C. Department of Revenue quick reference sheet to each article of tax distribution.
What is the current property tax rate in Buncombe County?
The county taxes property owners at a rate of 51.76 cents per $100 of assessed value. Residents may also face additional taxes, depending on where in the county they live.
How are property taxes determined?
Property value is determined by recent sales and the real estate market. The county uses this to assign appraisal value. State law mandates the county to conduct appraisals at least every eight years but county governments can do it more frequently.
Buncombe typically conducts a property appraisal every four years. The last one was in 2021 – and it’s currently finalizing another appraisal. The appraisal was originally slated for 2025 but was delayed by Hurricane Helene. On Jan. 1, 2026, property owners will receive a new assessed value. Your tax bill comes from the assessed value and the tax rate, set by commissioners.
How and when does the county raise property taxes?
Buncombe County Commissioners have the authority to raise property taxes through the annual budget process. The county last raised taxes in 2024 – increasing the rate by nearly 2 cents – to fund education and pay raises for county staff.
What happens to the money that the county does not spend?
At the end of a fiscal year, any unspent money goes into an unassigned fund balance, which is basically the county’s “savings” account.
It’s best practice to maintain a fund balance equal to 15% of expenditures in the General Fund, according to County Budget Director John Hudson. If the county needs to fund extra expenditures, it can choose to dip into its fund balance, as long as it maintains the required balance.
As of June 2024, the unassigned fund balance totaled $70.4 million, according to the county’s annual financial report.
Can the county invest any of its extra funds?
Yes. The county currently has an investment portfolio that totals around $406 million, according to county spokesperson Lillian Govus.
Does the county get any money from the tourism tax?
Hotels and short-term rentals in Buncombe County are charged a 6% occupancy tax. These funds do pass through the county, but they are ultimately controlled by the Buncombe County Tourism Development Authority. State law requires the authority to spend two-thirds of its annual budget on destination promotion and one-third on tourism-related expenditures.
What are the county’s biggest expenses?
Based on last year’s budget, the county uses 29% of its general fund revenue for education, 22% on public safety and 22% on health and human services.
Is the county allowed to run a deficit budget? What happens if it doesn’t have enough money?
The county cannot run a deficit with its annual budget, according to state law. If the county needs extra money, it can dip into its unassigned fund balance, raise taxes – or cut spending.
How much debt can the county legally take on?
County policy allows Buncombe to take on 3% of the total assessed value of taxable property, which would be approx. $1.1 billion in debt.
This is a more restrictive policy than state law, which allows county debt worth 8% of property value within the county, which is approximately $3.6 billion in debt, as of June 2023.
The county has $406.6 million in debt, according to county spokesperson Lillian Govus.
(1155x625, AR: 1.848)
What to expect this yearWhat are the public input opportunities?
There is no public comment during budget work sessions, but there is at least one required public hearing before the county adopts its proposed budget. That is scheduled for May 20 at 200 College Street, Room 326 in downtown Asheville beginning at 5 p.m. The meeting can also be streamed via Buncombe County’s Facebook page.
What are this year’s funding priorities?
At its recent work session, county leaders focused on trying to run a balanced budget while recovering from the damage of Hurricane Helene. They proposed a plan to cut permit fees in half for Helene victims who are rebuilding their homes, which commissioners will vote on at their May 6 meeting. More priorities will be discussed at the next two budget work sessions, which are slated for April 22 and April 29.
What are the pain points in this year’s budget?
Pre-Helene, the county projected a $496.6 million general fund, but that projection has since been adjusted to $413 million – a more than $83 million drop in anticipated revenue. The gap is a result of erratic sales tax revenue and a lower-than-usual property tax collection rate, based on a presentation shared during the March 20 work session.
Can't get enough of municipal number crunching? Check out our guide to the City of Asheville's budget process.
The near-halt of commerce during the 53-day Asheville water crisis, the destruction of residential and commercial property and precipitous drop in tourism sapped crucial revenue from the county, which largely relies on sales tax and property tax to make ends meet.
At the same time, the county must work to address a complicated recovery process that includes everything from housing issues and infrastructure needs to mental health issues.
Last year, Buncombe County’s total budget sat at around $626 million. This year, the total amount is still being calculated, but so far we know the general fund will sit around $413 million.
You might be wondering – where does it all go? And how do staffers and elected officials make decisions on how to spend it all?
Those important choices are happening right now, as the county determines its budget for the upcoming fiscal year, FY 2026, which runs July 1, 2025 through June 30, 2026.
Financial jargon and the municipal budget-making process can be rather befuddling – so we put together a guide dedicated to understanding taxes, spending and how you can provide input. Have a question we haven’t answered? Email us at lastnight@bpr.org.
Breaking down the basics…How much money is in the annual budget?
The budget changes every year based on revenue from property tax, sales tax, intergovernmental funding, various fees, charges and permits and other miscellaneous sources.
Last year, the county adopted a total budget of around $626 million. The budget is expected to be lower this year, due to the financial fallout from Hurricane Helene.
How is the money organized?
The county’s finances are organized into four main funds: General, Special Revenue, Enterprise and Internal Service.
- The General Fund: This is the county’s largest bucket of spending on much of its day-to-day operations, such as EMS, public health services and education. General Fund money primarily comes from property tax dollars but operations are also supported by sales tax revenue, investment earnings and intergovernmental funding (like federal or state grants). Last year, the fund originally totaled $440 million, but the county ended up reducing the budget by $17.6 million after a budget shortfall caused by Hurricane Helene. This year, as the county is still recovering from revenue loss, it’s projected to use $413 million.
- The Special Revenue Fund: This is money restricted by law for certain uses. One example is the approximately $22 million occupancy tax, which passes through Buncombe County government but is ultimately allocated and controlled by the Buncombe County Tourism Development Authority. Last year, the county’s Special Revenue Fund was $124 million, or about 20% of the total operating budget.
- The Enterprise Fund: The three services operated through this fund are solid waste, inmate commissary and the Buncombe Sheriff’s Real-Time Intelligence Center. In each case, program revenue or fees directly fund operations. Its budget for last year was $17 million. The vast majority of the funds, around $16.3 million, were used for solid waste management.
- The Internal Service Fund: This is another limited-use arrangement, specific to paying for commercial liability programs, plus insurance, dental, workers’ compensation and other benefits for county employees. Buncombe spent around $45 million here last year.
County Manager Avril Pinder is responsible for assembling a proposed budget. The county’s budget department, run by John Hudson, assists the county manager by planning, preparing and monitoring the county’s budget for efficiency and performance.
Once the budget draft is proposed, it goes before the Buncombe County Board of Commissioners for final approval.
What is the timeline of the budget process?
The budget process usually kicks off in November when the county hosts its first budget retreat. This year, it started in January due to delays caused by Hurricane Helene. At the retreat, the county establishes the cost of delivering basic services and commissioners, along with full-time leaders, decide on new spending.
Then, the county holds work sessions to discuss the direction of the budget. Buncombe has already held one with a second scheduled for April 22 and a third scheduled for April 29. The latter will focus specifically on education and fire district funding.
At the May 6 commission meeting, Pinder will present the staff’s recommended budget.
There will be a public hearing and vote on May 20, when the commission provides feedback on the budget and residents get the opportunity to provide input.
A final vote is scheduled for June 3. According to state law, the budget must be adopted no later than July 1.
What if the county fails to pass a budget by July 1?
The county can still pay salaries, make debt payments and take care of other routine expenses.
(889x742, AR: 1.1981132075471699)
Where does the money come from? And where does it go?How does the county bring in revenue?
The majority of the county’s general fund revenue comes from property tax, intergovernmental funds and sales tax. This year, a total of $413 million in revenue is projected to be supported via these major sources:
- $269.3 million in property taxes
- $48.5 million from intergovernmental transfers, i.e. state, federal and other funds
- $45.5 million from sales tax and other services
- $25 million in permits, fees and other taxes and licenses
- $24.8 million from sales and other services
The county has four local sales taxes. In total, these represent a 2.25% tax. To learn more about each, start here with an N.C. Department of Revenue quick reference sheet to each article of tax distribution.
- Article 39: A 1% tax that supports the Public School Capital Needs Fund, which allocates money to Buncombe County Schools and Asheville City Schools.
- Article 40: A half-percent tax, 30% of which must be spent for school capital outlay or debt service on school bonds.
- Article 42: A half-percent tax, 60% of which must be spent for school capital outlay or debt service on school bonds.
- Article 46: A quarter-cent tax designated for Asheville-Buncombe Technical Community College.1008
What is the current property tax rate in Buncombe County?
The county taxes property owners at a rate of 51.76 cents per $100 of assessed value. Residents may also face additional taxes, depending on where in the county they live.
How are property taxes determined?
Property value is determined by recent sales and the real estate market. The county uses this to assign appraisal value. State law mandates the county to conduct appraisals at least every eight years but county governments can do it more frequently.
Buncombe typically conducts a property appraisal every four years. The last one was in 2021 – and it’s currently finalizing another appraisal. The appraisal was originally slated for 2025 but was delayed by Hurricane Helene. On Jan. 1, 2026, property owners will receive a new assessed value. Your tax bill comes from the assessed value and the tax rate, set by commissioners.
How and when does the county raise property taxes?
Buncombe County Commissioners have the authority to raise property taxes through the annual budget process. The county last raised taxes in 2024 – increasing the rate by nearly 2 cents – to fund education and pay raises for county staff.
What happens to the money that the county does not spend?
At the end of a fiscal year, any unspent money goes into an unassigned fund balance, which is basically the county’s “savings” account.
It’s best practice to maintain a fund balance equal to 15% of expenditures in the General Fund, according to County Budget Director John Hudson. If the county needs to fund extra expenditures, it can choose to dip into its fund balance, as long as it maintains the required balance.
As of June 2024, the unassigned fund balance totaled $70.4 million, according to the county’s annual financial report.
Can the county invest any of its extra funds?
Yes. The county currently has an investment portfolio that totals around $406 million, according to county spokesperson Lillian Govus.
Does the county get any money from the tourism tax?
Hotels and short-term rentals in Buncombe County are charged a 6% occupancy tax. These funds do pass through the county, but they are ultimately controlled by the Buncombe County Tourism Development Authority. State law requires the authority to spend two-thirds of its annual budget on destination promotion and one-third on tourism-related expenditures.
What are the county’s biggest expenses?
Based on last year’s budget, the county uses 29% of its general fund revenue for education, 22% on public safety and 22% on health and human services.
Is the county allowed to run a deficit budget? What happens if it doesn’t have enough money?
The county cannot run a deficit with its annual budget, according to state law. If the county needs extra money, it can dip into its unassigned fund balance, raise taxes – or cut spending.
How much debt can the county legally take on?
County policy allows Buncombe to take on 3% of the total assessed value of taxable property, which would be approx. $1.1 billion in debt.
This is a more restrictive policy than state law, which allows county debt worth 8% of property value within the county, which is approximately $3.6 billion in debt, as of June 2023.
The county has $406.6 million in debt, according to county spokesperson Lillian Govus.
(1155x625, AR: 1.848)
What to expect this yearWhat are the public input opportunities?
There is no public comment during budget work sessions, but there is at least one required public hearing before the county adopts its proposed budget. That is scheduled for May 20 at 200 College Street, Room 326 in downtown Asheville beginning at 5 p.m. The meeting can also be streamed via Buncombe County’s Facebook page.
What are this year’s funding priorities?
At its recent work session, county leaders focused on trying to run a balanced budget while recovering from the damage of Hurricane Helene. They proposed a plan to cut permit fees in half for Helene victims who are rebuilding their homes, which commissioners will vote on at their May 6 meeting. More priorities will be discussed at the next two budget work sessions, which are slated for April 22 and April 29.
What are the pain points in this year’s budget?
Pre-Helene, the county projected a $496.6 million general fund, but that projection has since been adjusted to $413 million – a more than $83 million drop in anticipated revenue. The gap is a result of erratic sales tax revenue and a lower-than-usual property tax collection rate, based on a presentation shared during the March 20 work session.
Can't get enough of municipal number crunching? Check out our guide to the City of Asheville's budget process.