Asheville zeroes in on $185M coronavirus austerity budget; Here’s what’s in it – Citizen Times

ASHEVILLE - With a budget deadline a month away the City Council is zeroing in on a $185 million spending plan.

The proposed operating budget represents a year-over-year decrease forced by declining taxes and other public revenues.

City Manager Debra Campbell proposed the austerity budget at a May 26 council meetingamid the economic fallout of the coronavirus. It includes no tax or fee increases.

The council is set to hold a public hearing on the proposalJune 9 with a final vote June 23. By state law local governments must pass balanced budgets by June 30.

City Manager Debra Campbell(Photo: Angeli Wright/awright@citizen-times.com)

"This is essentially a continuation budget," Campbell told the seven council members who attended through video links. "There are very, very limited service enhancements not because we don't want to enhance services, but we just cannot afford to do it. And it would be generally, considering what is happening in our community and country, not a good thing at this time."

- The current year's budget was expected to be $192 million, but end of year revenue losses, including $1.6 million less in sales taxes, caused city budget officials to slash that. Federal assistance filled some of the holes bringing this current year'sbudget to $189million.

- Next year the biggest revenue loss will actually not be from the pandemic. The settlement of a class action lawsuit means the city must eliminate its water capital fee, causing a $7.4 million drop.

- Harrah's Cherokee Center - Asheville has been closed, though staff hope for "strong third and fourth quarters with numerous rescheduled and annual events," according to the proposed budget. Still, next year center is anticipated to be down $1 million in spending. A$100 million renovation of the center's Thomas Wolfe Auditorium planned before the pandemic is in limbo.

- City parking fees are down after being suspended. The parking fund which was set to bring in$7.2 million this year and normally helps subsidize transit is now losing $500,000 a month. Some recovery next year couldbring it to $6.6 million.

Cots are lined 6 feet apart in a hallway as Harrah's Cherokee Center is prepared to house homeless in the midst of the coronavirus pandemic Asheville April 8, 2020.(Photo: Angela Wilhelm/awilhelm@citizentimes.com)

More: Pandemic shelter for homeless moved from Harrah's Center to hotel

- Sales tax, a top revenue source after property taxes and water, is estimated to be $27.3million next year. This year's original estimate was $28.5 million (though that has been reduced to $26.8 million)

- Interest earnings will be down $1.1 million due to rate decreases.

- A slowdown in development will mean a 7% drop in city development fees, a loss of $250,000

- Alcoholic Beverage Control revenues will be down 10% or $200,000 due to closure of bars and restaurants, the biggest customers.

- Across-the-board city pay increases are frozen, except for a raise to $31,200 ($15 an hour) for 92 lowest-paid city workers.That, plus increases for slightly betterpaid workers with higher positions or longer tenure, will cost $574,000.

- Despite the freeze, firefighters are continuing to push for a raise for the 77 lowest-paid firefighters. They make $33,935, but because of the time they spend overnight in fire stations, they work the equivalent of 56 hours a week,Asheville Fire Fighters Association President Scott Mullins said. "Every city employee makes $15 an hour except 77 fire fighters," Mullins said. City Manager Campbell has said she first wants to see the results of a pay and compensation study before making any recommendations. The study is scheduled to be finished by early June.

- Hiring is also frozen with the exception of seven new positions to maintain the River Arts District transportation improvements:three laborers, an equipment operator, atradesworker, a labor crew supervisor, and a labor crew coordinator.

- Property taxes, the biggest source of city revenue, are expected to rise from $68.5 million to $71.4 million. That's because of personal property belonging to the formerly nonprofit Mission Hospital becoming taxable now that the hospital's owned by the private company HCA.

- Transit has faced losses after the city made buses fare free and limited passenger numbers and service to reduce the chance of infection. But federal CARES Act funding has and will continue to bolster the system. Spending is set to grow from $11million to $12.3 million next year. That includes a $1.7 million increase from property taxes and other general fund revenues.

An Asheville Regional Transit driver wears a mask while driving down Haywood Road in West Asheville March 26, 2020. ART buses began limiting riders to 10, including the driver, March 25.(Photo: Angela Wilhelm/awilhelm@citizentimes.com)

- General fund money that goes to nonprofits should be reallocated to "support equity and address opportunity gap goals," Asheville Chief Financial Officer Barbara Whitehorn who gave much of the May 26 budget presentation to the council. Specifics:$35,000 to support Asheville City Schoolsafter-school coordinator; $43,000 to Parks and Recreation for extended community center hours andsummer youth and teen programming; $15,000 to Pisgah Legal Services Tenant Eviction Response Team.

Joel Burgess has lived in WNC for more than 20 years, covering politics, government and other news. He's written award-winning stories on topics ranging from gerrymandering to police use of force. Please help support this type of journalism with asubscriptionto the Citizen Times.

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Asheville zeroes in on $185M coronavirus austerity budget; Here's what's in it - Citizen Times