This year’s budget process was a doozy for Asheville city government. Staff and City Council members struggled to address a budget gap, initially estimated at $30 million, and ultimately raised the property tax rate by about 14%. Council only passed the fiscal year 2026-27 budget in a 4-3 split vote, with some members concerned over the city’s approach to spending.
Next year’s budget, according to an Oct. 13 internal memo by City Manager DK Wesley, will be even harder.
Rising costs, slow revenue growth, and uncertainty around state property tax law are combining to challenge Asheville’s finances, Wesley wrote. She told the city's department directors that they should prepare for budget reductions in fiscal year 2027-28, likely including service
cuts, “with an emphasis on long-term efficiencies” and “creative synergies” between parts of government.
“We know it’s not easy to work with limited resources, especially when we are being asked to do more every day. Our goal is to provide necessary services while minimizing the financial burden on the community,” read Wesley’s memo.
In contrast with previous years, noted Wesley, the city will evaluate even “unavoidable increases” like higher contract costs as exceptions to a rule of flat operational expenses. Departments should instead work to absorb any increases by slashing costs elsewhere.
New programs would only be “considered on a case-by-case basis,” and only in response to the city’s forthcoming strategic plan. “City Council is expected to approve the Strategic Plan in March 2027, including the mission, vision, values, focus areas and goals that will be used to inform budget decisions and align investments with strategic priorities,” Wesley wrote.
An accompanying “running agenda” for budget check-ins indicated that Asheville is thinking about its spending through an “80/20” framework. Roughly 80% of city spending is mandated, the document read, which “gives us 20% to think about” as the upper boundary of cuts.
Asheville released the budget documents in response to a request by local government transparency advocate Patrick Conant. The tranche of public records also includes a spreadsheet of sales tax revenues, indicating that final income for the last fiscal year was $1.37 million below the city’s budget.
However, the documents are not available on the city’s public records portal. In May, Public Records Officer Allison Byers told the Citizen Times that the city would not post fulfilled public records requests “in an effort to ensure the portal and its use complies with federal accessibility requirements.”
City spokesperson Kim Miller confirmed the authenticity of the documents and noted that Asheville's budget process was in its earliest stages.
"While it is too soon to say to what extent rising costs may outpace revenue growth, it is not too early to begin identifying opportunities to innovate, do things differently, and identify efficiencies that will support the delivery of a balanced budget. These exercises are typical processes for a high-performing organization," Miller wrote in a statement to the Citizen Times. "The City Manager's office remains committed to an inclusive budget process that is rooted in collaboration and innovation.
Wesley’s message comes at a time of transition for Asheville’s financial leadership. Not only are the mayor and three City Council seats up for election in November’s midterms, but Finance and Management Services Director Tony McDowell — a 28-year veteran of city government — will retire at the end of year.
The running agenda indicates that staff will hold a meeting on Wesley’s budget memo Monday, Oct. 26. The city will then develop savings proposals over the next several months and suggest any new funding requests in January. Documents did not note when City Council will begin public discussions on the fiscal 2027-27 budget.
Daniel Walton is the City Government Watchdog Reporter for the Asheville Citizen Times. Email him at dwalton@citizentimes.com, and connect with him on social media through Facebook, Instagram, or Reddit.
This article originally appeared on Asheville Citizen Times: Asheville manager forecasts cuts in next year's 'challenging' budget
