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From Staff Reports
ASHEVILLE, N.C. — Asheville City Manager DK Wesley on Oct. 13 warned department directors to prepare for budget and service reductions for the upcoming fiscal year 2027–28 due to rising costs, slow revenue growth and state property tax law uncertainties.
Public reports of the directive surfaced around Oct. 26.
Key details of the budget warning are as follows:
• The memo: In an internal memo dated Oct 13, Wesley told staff that the fiscal year 2027–28 budget process will be even harder than the previous year, which involved a $30 million gap and a 14 percent property tax rate increase.
• Projected deficits: The city is currently forecasting a deficit of $612,000 for 2027 and $2 million for 2028.
• The “80/20” framework: Roughly 80 percent of Asheville’s budget is mandated spending, leaving about 20 percent considered flexible for potential cuts.
• Flat operational baseline: Unlike past years, departments must treat even unavoidable cost increases (such as higher contracts) as exceptions and absorb them by cutting expenses elsewhere.
• Leadership and political transition: The warning was issued as Finance and Management Services Director Tony McDowell retires at the end of the year, and local elections were approacing on Nov. 3 for the mayor and three Asheville City Council seats.
(In the Nov. 3 general election, Kim Roney was elected as the new mayor of Asheville. Elected to the three council seats were Buncombe County Commissioner Drew Ball, along with incumbents Maggie Ullman and Antanette Mosley. Ball replaces Sheneika Smith, who finished last in the race.) |