Taxpayer Brief · City of Asheville

Where your city tax dollars go in FY2027

The City of Asheville budget for July 1, 2026 through June 30, 2027 — the one in effect now

Adopted June 9, 2026 (4-3 vote) · Prepared 2026-06-29 · Adopted figures

This is the budget that actually governs the year ahead. Asheville is spending $275.8 million across all funds, up about 7.5% from last year, and it raised property taxes again to close a gap left by inflation, rising debt and healthcare costs, and the long tail of Tropical Storm Helene. The council split 4-3 over it.

$275.8MTotal budget+7.5% vs FY26

$187.5MGeneral fund+2.5%

37.69¢Tax / $100 value+4.80¢ over revenue-neutral

~$1,910City tax, median home~$507K value

Read the tax rate carefully — it is an increase, not a cut

The rate looks like it fell (44.19¢ last year to 37.69¢), but that is only because the 2026 county revaluation raised home values. Measured honestly, the city set the rate 4.80 cents above revenue-neutral — a real increase of about 15%. The city says most homeowners will pay more, roughly $20 a month on an average home.

Estimate your bill — inside the City of Asheville

Your 2026 assessed value

City of Asheville (37.69¢)$1,508

Buncombe County (43.20¢)$1,728

Asheville City Schools (8.64¢)$346

Estimated annual property tax$3,582

For a home inside the City of Asheville — the full stack of city + county + Asheville City Schools (89.53¢ per $100). Most city addresses fall in the Asheville City Schools district. Excludes exemptions or deferments and separate stormwater/solid-waste/water fees. Based on adopted FY2027 rates; subject to the SB 889 outcome noted below. An estimate — use your actual assessed value and bill.

Where the general fund goes

The general fund ($187.5M) is the part of the budget your taxes mostly pay for. The city has not yet posted its adopted department-by-department breakdown, so the split below is by type of cost (from the recommended budget). The clear takeaway: it is people-heavy.

Salaries & wages$83.3M · 44%

Employee benefits$40.5M · 22%

Operating costs$33.0M · 18%

Capital & debt$22.3M · 12%

Transit subsidy$8.4M · 4%

Personnel (pay + benefits) is about 66 cents of every general-fund dollar. Public safety has been the largest service area in past years; the city has not published an exact FY2027 department split.

Where the money comes from

Property tax$106.5M · 57%

Sales & other taxes$42.4M · 23%

State/federal (intergov)$14.9M · 8%

Charges for service$12.0M · 6%

Permits, fees, other$11.7M · 6%

These revenue and spending line items are from the recommended budget; the city's adopted line-item detail is not yet posted and will be finalized in the adopted budget book. Council's late changes (about $9M in cuts) will shift the exact splits. The firm, adopted figures are the $187.5M general fund and the 37.69¢ rate.

What's new — and what got cut

Fire (AFD): funded for an hourly pay increase, a new 4th shift, and a REST team.
Police (APD): a personnel-budget reduction of about $380,000.
Pay: a 2.8% cost-of-living raise; the council restored the 1% 401(k) match (~$530K) the manager had proposed cutting.
Cuts to balance: 16+ vacant positions eliminated; community-center hours rolled back toward pre-COVID levels; less mowing, litter pickup, and landscaping; the annual public-art fund contribution paused.

Housing, shelter & neighborhoods

A dedicated affordable-housing staff position, a funded Neighborhood Matching Grant Program, and a city contribution to the Buncombe County Homeowner grant program.
Increased support for Code Purple cold-weather sheltering, and a transit route with an on-board crisis counselor.
Watch item: the recurring $500K Housing Trust Fund contribution looks to have stayed paused (the council restored the 401(k) match but did not publicly restore the HTF line). The bigger housing money is federal — $225M in CDBG-DR Helene recovery, separate from this budget.

The bottom line for a taxpayer

You are paying more this year — about $20 a month on a typical home — and the city is spending it mostly on people: firefighters, police, and the staff who run city services, while trimming hours and upkeep at the margins. The headline rate looks lower only because your home was revalued; in real terms it is roughly a 15% increase.

One asterisk on the rate (likely to resolve in homeowners' favor)

A new state law, SB 889 (signed June 19, 2026), freezes the 2026 revaluation for one year and could force the city to reset this rate. A separate bill, SB 474, would exempt Buncombe and is moving through the legislature — it passed the House 111-1 and is widely expected to become law. If it does, the 37.69¢ rate stands. If it somehow fails, the rate could be re-set. Tax bills mail in August, so it should be settled by then.

Sources: City of Asheville FY2027 budget adoption release (June 9, 2026); FY2027 recommended budget staff report; Blue Ridge Public Radio, WLOS, 828 News Now, Mountain Xpress, Carolina Journal; revenue-neutral and rate figures from the city and WLOS. Department-level dollar detail will firm up when the adopted budget book posts. Tax-cost examples are city tax only, on 2026 revalued values. Independent summary; not affiliated with the City of Asheville.