ASHEVILLE - Buncombe County Commission approved its fiscal year 2024-25 budget June 18, which includes a property tax increase for county residents, though less of a bump than was initially proposed.
The $626.4 million budget includes a 1.96-cent property tax increase, bringing the rate to 51.76 cents per $100 of assessed valuation, with 1.21 cents dedicated to county operations, and .75 cents to K-12 education. It will generate $10.5 million in additional revenue.
It is a .59-cent tax reduction from the original budget proposal, which Budget Director John Hudson said came in response to feedback from county commissioners. Depending on location, property owners also paymunicipal, fire fighting district or school district taxes.
A 'tough' budget
Chairman Brownie Newman said it was one of the toughest budgets he's worked on, a sentiment that Commissioner Al Whitesides echoed.
Newman was elected to County Commission in 2012. He announced late last year he would not run for reelection.
"(Increasing the tax rate) is always a very difficult decision because it affects a lot of people who are struggling in the community. It's not just effecting tourists or the wealthiest folks in our community, it affects everyone in a real way," Newman said.
Though costs are expected to increase annually, he said, "when you go through two years of the largest cost of living increases that we've seen in many decades for sure, that becomes a really big obligation. And when that happens and your revenues suddenly are really flat, the combination of those two things creates a real challenge."
Like other localities statewide —including Asheville,which approved its own $250.9 million budget June 11, and a .63-cent property tax increase — stagnating sales tax revenues have created complications. In fiscal years 2021 and 2022, the county averaged around 14% growth, dropping to 5.5% in 2023. This year, it's projecting 1.5% growth.
Despite difficulties, with the help of 2022's $70 million bond referendum, Newman praised the county's investments in affordable housing and conservation. He was also excited to see new investments in emergency services and public safety.
Whitesides called it the "most difficult" budget of the eight since he's been on commission, though he said they must begin looking more intently at education.
"We need to look ahead to the future and how we do this, because it's important," Whitesides said. "What we're doing now is definitely not working and it's not going to get any better unless we put our arms around it. And unfortunately we're going to have to make some tough decisions."
Commissioner Martin Moore agreed, and said a multiyear funding strategy for education was needed. He is running for North Carolina Court of Appeals.
Hudson called it a "continuation of services budget," with $4 million of operating cuts, as well as deferred capital projects. It includes a "minimal increase" in revenue, about 1.3% in the general fund, according to a June 18 presentation.
Challenges are exacerbated, the budget document said, by one of the highest costs of living in the state, lack of housing supply, worker shortages and the need to offer competitive wages.
County Manager Avril Pinder recommended 30 new positions from a request of 130 across 24 departments and divisions, plus three positions in the Solid Waste Enterprise Fund. Included in the budget is an annual cost of living adjustment of 4.89% for all regular employees.
Budget highlights
County spending plan proposed for fiscal year 2025 (July 1 - June 30)
$626.4 million- total budget, up from $609 million.
$440 million- general fund, the biggest fund in the budget. It's an increase of .7% from the previous year. Includes many core services such as EMS, sheriff's office, parks and recreation and boosts for schools, which are otherwise state funded.
51.76 cents- tax rate, up from 49.8 cents. To calculate county property taxes, divide assessed property value by $100 and multiply by the tax rate. It represents an annual increase of $78.40 annually on a home valued at $400,000.
$514K goes to Community Paramedics
Also at its June 18 meeting, Buncombe commissioners approved the reallocation of $1.9 million left over from the $50.7 million in COVID recovery funding awarded in 2021.
Though these funds were previously allocated, money was freed up from two projects, and will be redirected in part toward the county's Community Paramedic Program, which would see $514,085 in additional funding. This would allow four positions to be extended to June 30, 2026 from their original expiration date of Dec. 31. It will also provide $30,000 for mobile command center costs.
The remaining $1.4 million will go to capital outlay equipment, which helps to alleviate financial pressure on the fiscal year 2025 budget, adopted later that night, to offset capital expenses.
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Sarah Honosky is the city government reporter for the Asheville Citizen Times, part of the USA TODAY Network. News Tips? Email shonosky@citizentimes.com or message on Twitter at @slhonosky. Please support local, daily journalism with asubscriptionto the Citizen Times.
This article originally appeared on Asheville Citizen Times: Buncombe County OKs FY25 budget; property taxes to increase
