City Council regular meeting — June 9, 2026

Background:

• On March 24, 2026, Council was presented with options for adjusting Parking Fund fees and charges.
• Proposed changes include: expansion of parking meters into South Slope (up to 170 new meters); increases to monthly permit fees in Wall Street, Rankin, and Biltmore garages and lots; increase of the special event fee from $9 to $10; a new $15 "failure to pay" fee for garages; applying a special event fee to lots; authorization of new on-street monthly permit spaces at $30-50/month; and a $100/$200 fee for use of metered or ADA spaces for an entire day without prior approval.
• In total, these changes are expected to increase Parking Fund revenue by approximately $500,000.
• To operationalize the South Slope expansion, the Proposed Budget includes $480,000 for a Parking Enforcement Supervisor and two part-time Parking Enforcement Officers plus operating and capital costs for the meters.
• Public engagement on South Slope meter locations is planned for Summer-Fall 2026 with implementation in Spring 2027.
• If approved, fee adjustments become effective July 1, 2026.

Fiscal Impact:

• $500,000 in additional revenue and $480,000 in additional staff, operating, and capital costs included in the FY 2026-27 Proposed Budget (net $18,000 year one; $332,000 ongoing); both revenue and expenses are included in the Parking Fund.

Background:

• The FY 2026-27 Proposed Annual Budget was presented to City Council on May 12, 2026, totaling $275.6 million; a public hearing was held May 26, 2026.
• The Manager's proposed budget recommended a property tax rate of $0.3750, reflecting post-revaluation adjustments and savings measures including elimination of 16.5 vacant positions, departmental reductions, reduced community center hours, and a continuing pause on Housing Trust Fund and OPEB contributions.
• Post-public-hearing adjustments reduced the proposed rate from the initial $0.3784 to $0.3750 through: a higher property tax collection rate (+$466K), reduction in APD personnel costs covered by BID sales tax revenue, alignment with the APD academy start date, and reduced community center security spending.
• Councilman Hess moved to adopt the budget with two amendments: (1) reinstatement of the 1% 401K employer match for all employees (~$530,000); and (2) adjustment of the property tax rate to $0.3769 per $100 of assessed value. An earlier motion by Ullman/Mosley for a $0.3777 rate (which also eliminated BID sales tax for APD) was rescinded before a vote.
• The adopted General Fund budget totals approximately $186.97 million; the total net budget is approximately $275.10 million. Committee(s):
• Public hearing held May 26, 2026.

Fiscal Impact:

• Property tax rate of $0.3769 per $100 of assessed valuation, representing an increase of $0.0480 above the revenue neutral rate of $0.3289 and $0.0650 below the adopted FY 2025-26 rate of $0.4419.

Background:

• HUD allocated $225,010,000 in CDBG-DR funds to the City of Asheville on January 16, 2025; the City's Action Plan allocated $28,000,000 to the Affordable Multi-Family Housing Construction Program.
• A competitive Notice of Funding Opportunity (NOFO) closed February 25, 2026; 12 of 13 applications were deemed eligible, totaling 1,481 proposed units and $70.4 million in requested City CDBG-DR funds. Applications were scored on financial efficiency, affordability, disaster resilience, long-term viability, and shovel readiness.
• On May 12, 2026, City Council adopted Resolution 26-96, awarding $8.39 million to Commonwealth Development Corporation (District East Commons) and Laurel Street (319 Biltmore B) for 205 units.
• Staff recommends an additional award of $9.5 million to Mountain Housing Opportunities/South Creek Development for the top-ranked Terrace at River Hills project (110 River Hills Road): 126 units (4% LIHTC; 7 at 20% AMI, 7 at 30%, 65 at 50%, 21 at 60%, 26 at 80%; 35-year affordability; total development cost $42,538,741; 1-, 2-, and 3-bedroom units).
• The project is shovel-ready: the site is vacant with no external funding contingencies, requiring only the City's commitment to unlock 4% tax credits and begin construction in 2026.
• All funding commitments are contingent on LIHTC awards from the North Carolina Housing Finance Agency.
• CDBG-DR funds must be expended within six years of the obligation date (January 16, 2031). Committee(s):
• Housing and Community Development Committee voted 2-1 on May 5, 2026 to move forward to City Council.

Fiscal Impact:

• This work is fully funded with CDBG-DR funds; no impact to the General Fund.

Background:

• On April 11, 2023, City Council authorized staff, via Resolution 23-73, to apply for and receive $3,000,000 in grant funds from the Mellon Foundation to support implementation of the Pack Square Plaza Vision Plan.
• On June 19, 2023, the City was awarded $3,000,000 through the Mellon Foundation's Monuments Project to advance elements of the Pack Square Plaza Vision Plan, including "Boosting the Block," an initiative focused on better connecting The Block and enhancing its cultural character through design, engineering, and construction.
• On May 28, 2024, City Council adopted a resolution authorizing execution of a $180,000 contract with Illumined Leadership Solutions for community engagement and overall support for the Boosting the Block initiative, and approved an associated budget amendment of $3,000,000 to accept the grant funds.
• The Mellon Foundation grant included $1,464,388 designated for design/engineering and construction of streetscape and public space improvements associated with the Boosting the Block project; City Council authorization is required to transfer these funds to the City's Capital Projects Fund for use as part of the Eagle and Market Street Enhancements Project.
• The Eagle and Market Street Enhancements capital project will implement the key physical elements of Boosting the Block, leveraging additional transportation bond funds to develop a community-inspired design for key corridors on The Block intended to enhance walkability and wayfinding, strengthen visual and cultural identity, and invest in infrastructure that supports community gathering.
• City staff will also submit a Phase II TDA LIFT application to pursue additional funding for the project.
• In early 2026, the City administered a competitive RFQ process to select a Design/Engineering team; City Council is scheduled to consider contract authorization on June 23, 2026.

Fiscal Impact:

• No additional fiscal impact; these are previously received grant funds being transferred from the Special Revenue Fund to the General Capital Projects Fund.

Background:

• The UNC School of Government annually convenes a group of NC municipalities to participate in the North Carolina Benchmarking Project, in which participating cities compare performance data to understand how efficiently and effectively they are providing core municipal services and learn from each other by sharing best practices.
• The City of Asheville participated in the NC Benchmarking Project from at least 2005 until 2019 and rejoined in 2023.
• This resolution authorizes the City Manager to sign an agreement with the UNC School of Government to participate in the next three years of the NC Benchmarking Project at an annual cost of $10,000 per year.

Fiscal Impact:

• $10,000 per year for Fiscal Years 2026 through 2028, totaling $30,000; funding is included in the Finance & Management Services Department's annual operating budget.

Background:

• Offering competitive health insurance is essential for recruiting and retaining employees.
• Providing healthcare coverage promotes a healthier workforce.

Fiscal Impact:

• Contract not to exceed $720,000 annually for years one through three, $732,000 for year four, and $743,000 for year five.

Background:

• Stop-loss insurance is necessary because the City's health care costs are self-funded.
• This coverage caps the City's liability, protecting the organization from catastrophic or unpredictable medical claims.

Fiscal Impact:

• Contract not to exceed $2,070,000 total.

Background:

• Staff performed outreach through the Request for Proposals process, including posting on the City's website and performing outreach in accordance with applicable purchasing and Asheville Business Inclusion policies.

Fiscal Impact:

• Contract not to exceed $59,000 annually for years one through three, $62,000 for year four, and $63,000 for year five.

Background:

• Staff performed outreach through the Request for Proposals process, including posting on the City's website and performing outreach in accordance with applicable purchasing and Asheville Business Inclusion policies.

Fiscal Impact:

• Contract not to exceed $1,289,393 in year one, $1,363,863 in year two, $1,431,556 in year three, $1,502,634 in year four, and $1,577,265 in year five.

Background:

• The City offers Accidental Death and Dismemberment, Life and other voluntary insurance benefits to recruit and retain talent and to ensure compliance with legislative and fiduciary requirements.
• Leave management administration is utilized to track, approve and manage protected leave for employees as prescribed by federal legislation.

Fiscal Impact:

• Contract not to exceed $283,333 annually for three years.

Background:

• In August 2013, City Council approved a resolution authorizing a multi-year agreement with Reems Creek Fire Department for automatic aid service.
• Automatic aid is provided to specific areas in North Asheville where a Reems Creek fire unit can be on scene before an Asheville Fire unit; the Reems Creek unit is either a pickup-style vehicle or a fire apparatus with 2 firefighters depending on the type of call.
• The City of Asheville has a need to strengthen its standard of response and coverage in the Beaverdam Valley, and the Reems Creek Fire Department is the most appropriate organization to provide the service.
• The initial agreement costs were $82,656; as stipulated, costs are adjusted annually based on the Consumer Price Index.
• The term of this renewal agreement will end June 30, 2027.

Fiscal Impact:

• Total cost of the renewal agreement is $118,658.23 for fiscal year 2026-27.

Background:

• In order to build the Coxe Avenue streetscape project, the City must acquire right-of-way easements.
• The Coxe Avenue streetscape project construction is primarily funded through a federal transportation improvement grant and administered by NCDOT.
• NCDOT follows the Uniform Relocation Assistance and Real Property Acquisition Policies Act (URA), required for federally funded projects, to acquire right of way including permanent easements and temporary construction easements.
• All easements must be acquired before NCDOT will grant construction authorization, which occurs after design and right-of-way phases are complete and prior to advertising for bids.

Fiscal Impact:

• Contract amount of $278,350 for right-of-way acquisition services; City Manager further authorized to execute contract amendments up to the contingency amount of $41,000.

Background:

• The existing 30-year-old air handling unit (AHU) at the Public Works facility is approaching end of life and currently runs at only 50% power due to a bent wheel shaft, wheel imbalance, and bearing wear; replacement is needed before the summer season.
• Bidding required multiple rounds: a September 2025 design-build solicitation received no responses; an October 2025 cooperative purchase attempt through Omnia Partners was abandoned; two March 2026 bids were rejected as non-responsive; and the April 2026 rebid received two responsive bids.
• Johnson Controls Building Solutions submitted the lowest responsive bid: Base Bid $144,000 + Bid Alternate $8,390 = $152,390 total (versus Bolton Construction & Service of WNC at $250,660).
• Due to supply-chain lead times, the unit will be delivered by December 2026; temporary cooling is included in the project to provide continuity for building occupants during the summer.

Fiscal Impact:

• Contract amount of $152,390; City Manager further authorized to execute change orders up to the contingency amount of $15,239 (10%).

Background:

• Buncombe County currently bills and collects City property taxes.
• At the August 22, 2023 meeting, City Council approved an addendum to the existing tax collection agreement with Buncombe County to ensure full conformance with provisions of Chapter 105 of the North Carolina General Statutes (The Revenue Act).
• As part of that compliance, City Council must on a monthly basis approve all property tax releases and refunds that have been approved by the Buncombe County Board of Commissioners.
• City of Asheville refunds and releases for April 2026 are included in the supporting documentation.

Fiscal Impact:

• Per the schedule of April 2026 refunds and releases included in the supporting documentation.

Background:

• Pursuant to N.C.G.S. § 160A-309, the City may contract with a developer for public roadway improvements adjacent or ancillary to a private land development project, provided the public cost will not exceed $250,000.
• On February 25, 2025, Council adopted Ordinance 5120 rezoning two parcels totaling 6.68 acres on Brevard Road (between Brevard Road and Interstate 26, north of their intersection) to Residential Expansion
• Conditional Zone, allowing construction of 126 units of multi-family housing called The Deyton.
• The parcels are accessed via Pine Lane, a City-maintained street opened in 1994. Developer Roers Asheville Developer LLC has offered to improve a roughly 165-foot section of Pine Lane that the City has not opened, bringing it up to City standards at the developer's estimated cost of $198,361.
• The City has agreed to accept and maintain this additional 165-foot section of public right-of-way.

Fiscal Impact:

• All costs are borne by the developer; no fiscal impact to the City.

Background:

• Under N.C. Session Law 2021-191 (S.B. 473), funding for nonprofits with which councilmembers are associated must be moved to City Manager's Contingency and approved via separate budget amendment.
• Funding included in the Proposed Budget for the Economic Development Coalition was moved to City Manager's Contingency, requiring this separate action by the six non-recused members (Mayor Manheimer recused).

Fiscal Impact:

• $100,000 from City Manager's Contingency in the General Fund to fund the City's annual contribution to the Economic Development Coalition.

Background:

• Under N.C. Session Law 2021-191 (S.B. 473), funding for nonprofits with which councilmembers are associated must be moved to City Manager's Contingency and approved via separate budget amendment.
• Funding included in the Proposed Budget for the Sports Commission was moved to City Manager's Contingency, requiring this separate action by the six non-recused members (Councilwoman Turner recused).

Fiscal Impact:

• $45,000 from City Manager's Contingency in the General Fund to fund the City's annual contribution to the Sports Commission.

Background:

• Under N.C. Session Law 2021-191 (S.B. 473), councilmembers are prohibited from participating in the award of money to any nonprofit with which the public official is associated.
• Mayor Manheimer is associated with the Economic Development Coalition; accordingly, a motion was made to recuse her from the subsequent budget amendment vote.

Background:

• Under N.C. Session Law 2021-191 (S.B. 473), councilmembers are prohibited from participating in the award of money to any nonprofit with which the public official is associated.
• Councilwoman Turner is associated with the Sports Commission; accordingly, a motion was made to recuse her from the subsequent budget amendment vote.

Background:

• The City of Asheville is an entitlement community and participating jurisdiction with HUD, receiving formula funding annually through the Community Development Block Grant (CDBG) and HOME Investment Partnerships Program (HOME).
• CDBG funds support housing and community development activities within the City; HOME funds support affordable housing activities within the four-county Asheville Regional Housing Consortium (Buncombe, Madison, Transylvania, and Henderson counties).
• All funded activities must meet the goals and priorities outlined in the City's Consolidated Plan 2025-2029.
• City Council held a public hearing on May 26, 2026, to obtain citizen comments on the draft Annual Action Plan; written comments were accepted through June 5, 2026.
• During the June 9 meeting, five public comments were received requesting funding for Homeward Bound. Council amended the plan to reduce the Water Resources Department allocation to $403,030 and direct $96,970 to Homeward Bound public services. Committee(s):
• Housing & Community Development Committee provided CDBG funding recommendations on March 7, 2026 (recipients: Asheville Water Resource department, Asheville Area Habitat for Humanity, Pisgah Legal Services, and Helpmate).
• Asheville Regional Housing Consortium Board provided HOME funding recommendations on January 14, 2026.

Fiscal Impact:

• The awarded FY 2026-27 grant amounts will be included in the FY 2026-27 Budget Ordinance; no impact to the General Fund.