Mayor Esther E. Manheimer, Presiding; Vice-Mayor S. Antanette Mosley; Councilman Bo Hess; Councilwoman Kim Roney; Councilwoman Sheneika Smith; Councilwoman Sage Turner; Councilwoman Maggie Ullman; City Manager DK Wesley; City Attorney Brad Branham; and City Clerk Magdalen Burleson
City Council held an agenda briefing worksession to discuss the upcoming and future agenda items. In addition, City Council reviewed upcoming City Council committees that will be taking place during the next two weeks.
Discussion occurred on the following other issues and updates: Boosting the Block; and Coxe Avenue Streetscape Project.
At 12:09 p.m., Mayor Manheimer adjourned the agenda briefing worksession.
Mayor Esther E. Manheimer, Presiding; Vice-Mayor S. Antanette Mosley; Councilman Bo Hess; Councilwoman Kim Roney; Councilwoman Sheneika Smith; Councilwoman Sage Turner; Councilwoman Maggie Ullman; City Manager DK Wesley; City Attorney Brad Branham; and City Clerk Magdalen Burleson
Mayor Manheimer led City Council in the Pledge of Allegiance.
Mayor Manheimer read a statement regarding Chamber decorum.
Mayor Manheimer read the proclamation proclaiming June 2026, as "National Gun Violence Awareness Month" in the City of Asheville. She presented the proclamation to Interim Police Chief Jackie Stepp, along with several others, who thanked City Council for bringing recognition to this important awareness.
A. Approval of the combined minutes of the agenda briefing worksession held on May 21, 2026, and the formal meeting held on May 26, 2026
B. Ordinance Number 5223 - Budget amendment transferring $1,464,337 in previously received Mellon Foundation funds from the City’s Grant Fund to the Capital Fund for the Eagle and Market Street Enhancements Project - Ordinance Book No. 37 - Page 30
C. Resolution Number 26-104 - Resolution authorizing the City Manager to enter into an agreement with the UNC School of Government to participate in the North Carolina Benchmarking Project for Fiscal Years 2026 through 2028 - Resolution Book No. 46 - Page 351
D. 1. Resolution Number 26-105 - Resolution authorizing the City Manager to enter into a contract with Cigna Health and Life Insurance Company for Employee Health Insurance - Resolution Book No. 46 - Page 352
D.2. Resolution Number 26-106 - Resolution authorizing the City Manager to enter into a contract with Cigna Health and Life Insurance Company for Stop Loss Insurance - Resolution Book No. 46 - Page 353
D.3. Resolution Number 26-107 - Resolution authorizing the City Manager to enter into a contract with Delta Dental NC for Employee Dental Insurance - Resolution Book No. 46 - Page 354
D.4. Resolution Number 26-108 - Resolution authorizing the City Manager to enter into a contract with Marathon Health for Health Services Clinic and Wellness Program Management - Resolution Book No. 46 - Page 355
D.5. Resolution Number 26-109 - Resolution authorizing the City Manager to enter into a contract with Sun Life Assurance Company of Canada for Employee Insurance and Leave Management Administration - Resolution Book No. 46 - Page 356
E. Resolution Number 26-110 - Resolution authorizing the City Manager to renew the automatic aid agreement between the City of Asheville and Reems Creek Fire Department - Resolution Book No. 46 - Page 357
F. Resolution Number 26-111 - Resolution authorizing the City Manager to execute a contract with Colliers Engineering & Design, Architecture, Landscape Architecture, Surveying, CT, P.C., for easement acquisition services on the Coxe Avenue streetscape project - Resolution Book No. 46 - Page 358
G. Resolution Number 26-112 - Resolution authorizing the City Manager to enter into a contract with Johnson Controls Building Solutions for the Public Works Air Handler Unit Replacement Project - Resolution Book No. 46 - Page 359
H. Monthly municipal property tax refunds or releases per North Carolina General Statute section 105-381
I. Resolution Number 26-115 - Resolution authorizing the execution of an improvement agreement that will allow a private developer to improve unopened portions of public right-of-way on Pine Lane and accept those areas for City maintenance - Resolution Book No. 46 - Page 366
Mayor Manheimer asked for public comments on any item on the Consent Agenda, but received none.
Councilwoman Ullman moved for the adoption of the Consent Agenda. This motion was seconded by Councilwoman Roney and carried unanimously.
Recovery Coordinator Bridget Herring recapped the recovery funding. She then reviewed the Federal Emergency Management Agency (FEMA) Public Assistance (PA) by the numbers: (1) Total number of damage inventory Items: 135 - Grouped into 50 total FEMA PA projects; (2) To date, the City has received $34M in reimbursed expenses; and (3) This is 54% of projected PA funds spent to date.
Regarding the Hazard Mitigation Grant Program (HMGP), the City submitted over $400M in City planning and infrastructure projects:
Private property applications continue to see an uptick in FEMA review and approval. North Carolina Emergency Management is working diligently to complete appraisals and offers to property owners. There have been 26 acquisitions in city limits that have been FEMA approved (1) 8 residential, 18 commercial; and (2) Addresses remain confidential until the offer is accepted and executed.
Regarding the Community Development Block Grant - Disaster Recovery (CDBG-DR) Small Business Support Program, over $15M in CDBG-DR dollars activated in small business support through Asheville Recovers Together and Optimist Ventures Disaster Recovery Accelerator. There will be a June 11 information session 9:30-11:00 am at the YMI Cultural Center Auditorium at 39 South Market Street. And, June 15 Applications open and available to view online now.
Regarding next steps and shaping our recovery, (1) June 14 - Deadline to submit Action Plan Amendment to Increase Support to Single-Family Housing Repair; Public Comment Hearing tonight; written comments and questions may be submitted by 5pm June 14 to: cdbg-dr@ashevillenc.gov or on publicinput.com/b82874; and discussion at the June 3 Housing Recovery Board and June 23 Infrastructure Recovery Board meeting; and (2) June 23 - next round of planning project recommendations will be heard by People and Environment; and unified concept design of French Broad Riverfront parks will be heard by both Infrastructure and People and Environment.
Ms. Herring summarized by outlining the following recent recovery accomplishments: (1) permanent pretreatment system at Debruhl Water Treatment Plant deemed eligible for FEMA PA; (2) state submitted $260M+ HMGP application for North Fork permanent pretreatment and alternate transmission line to FEMA; (3) first home repaired through Renew NC; and (4) $8.39M awarded for two multifamily housing projects that will add over 200 affordable units.
Ms. Herring responded to various questions/comments from Council, some being, but are not limited to: even though we are at 54% of projected FEMA Public Assistance (PA) to date, are we will incurring new PA expenses; and clarifications of frequently asked questions on the asheville recovers together website.
A. Public hearing to consider a substantial amendment to the Community
Development Block Grant - Disaster Recovery Action Plan to reallocate $19.2
million to the Single-Family Home Repair Program for a $22.2 million program
total, reducing the Multi-Family New Construction Program total to $18.8 million
and the Infrastructure Program total to $115 million
Community Development Division Manager James Shelton said that this is the consideration of a public hearing to consider reducing the Affordable Multi-Family Housing Construction Program budget to $18,800,000 from $28,000,000 and reducing the Infrastructure budget to $115,000,000 from $125,000,000. These reductions sum to $19,200,000, which would be reallocated to the Single-Family Reconstruction and Rehabilitation (R&R) Program budget for a total of $22,200,000 from its current $3,000,000. Other non-substantial technical amendments to the Action Plan are also included as part of this amendment. This public hearing was advertised on May
29, 2026.
Background:
Mr. Shelton said the following are the key takeaways from his presentation (1) The City’s
CDBG-DR Action Plan originally allocated $3 million to the Single Family Rehabilitation
& Reconstruction Program and $28 million to the Affordable Multi-Family Housing
Construction Program; (2) The total cost of the program to address all applicants is
estimated to be between $30-$40 million; and (3) Staff are proposing a Substantial
Amendment to the CDBG-DR Action Plan, reallocating $19.2 million in funding to the
Single Family Rehabilitation & Reconstruction Program, for a new total of $22.2 million.
Regarding Renew NC, he said the Renew NC Single Family Housing Program is a
centralized housing rehabilitation, reconstruction or replacement program that will
prioritize low-to-moderate income families with seniors aged 62 and older, children,
and/or disabled household members who were impacted by Hurricane Helene. The NC
Renew Program status is (1) Rehabilitation threshold = $100,000 of estimated repairs - if
a property’s costs to repair are greater than $100,000, then it is recategorized as full
reconstruction (like-for-like) (a) Costs to meet CDBG-DR home repair requirements
include: (i) Disaster related repairs; (ii) Cost to repair or replace all non-code compliant
issues; (iii) Cost to repair or replace all identified health and safety issues; and (iv)
Mitigation against future disasters (elevation, weatherization, slope stabilization, etc); (2)
Maximum reconstruction award/cost per property = $450,000 - Anticipated average cost
of reconstruction per home = $360,000; (3) Meeting all required repair needs identified
for reconstruction are unlikely to be alleviated by other programs or funding sources; (4)
Temporary Relocation Assistance (TRA) may be available to support families while their
homes are being rebuilt - This is new thanks to community input; and (5) Homeowners
receive a decent, safe, and resilient replacement home; and (6) The current $3 million
allocation will serve 8 households (a) Many applications are above the reconstruction
threshold ($100,000 of repairs + code + health & safety + mitigation) and have costs of
around $360,000 to fully reconstruct a home; (b) Seven projects are currently authorized
under the initial funding allocation; and (c) One project was completed in April and a
second is in active construction.
AMI Range | Household Criteria | Program Phase & Priority | Household Count |
0–60% AMI | Child, Elderly, or Disabled | Phase 1/Priority 1 | 87 |
0–60% AMI | Other Eligible Households | Phase 1/Priority 2 | 21 |
60–80% AMI | Child, Elderly, or Disabled | Phase 2/Priority 1 | 6 |
60–80% AMI | No Child, Elderly, or Disabled | Phase 2/Priority 2 | 3 |
81–120% AMI | Child, Elderly, or Disabled | Phase 4/Priority 1 | 30 |
Under Review | Pending Final Determination | TBD | 5 |
Regarding the proposed reallocation to single family, (1) staff propose amending the
CDBG-DR Action Plan (a) $9.2 million from the Affordable Multi-Family Housing
Construction Program (i) New total = $18,800,000 - $1,385,000 - District East Commons;
$7,000,000 - 319 Biltmore B; $9,505,000 - Unawarded and available for future projects
or reallocation; and $ 910,000 - Activity delivery cost; (b) $10 million from the
CDBG-DR Infrastructure Program (i) New total = $115,000,000 - $10,000,000 in
estimated design costs for the North Fork Reservoir Project identified as funds likely to
be reimbursed first through HMGP; and (c) Total reallocation to Single Family = $19.2
million (i) New total program allocation = $22.2 million; (ii) Will serve an estimated 53
additional households; and (iii) Focus continues to be on < 60% AMI; Elderly, disabled,
or children in the home; and reconstruction (repair estimates > $100,000).
The following is the December 2025 Housing Recovery Board feedback (1) Staff had
originally proposed a $17 Million reallocation from the Multifamily Program in December
2025; (2) Since then, we have gathered data and considered alternative options; and (3)
The new recommended reallocation leaves the MFH program with a total of $18.8
Million, as opposed to the December recommended reduction to $11 Million.
The April 2026 Housing Recovery Board feedback is as follows: (1) Multi-Family:
Maximizes investment per household served and long-term affordability (35+ year deed
restrictions) through gap financing and tax credit layering; (2) Single-Family: Supports
residents directly impacted by the disaster, preserves generational wealth, prevents the
displacement of residents in existing neighborhoods; and (3) Acknowledged the tensions
and need to rebalance the portfolio to ensure meaningful impact across both housing
types.
He then reviewed the current funding allocations, and the proposed funding allocations.
He then said the 30-day public comment period runs May 15–June 14, 2026. Residents may review the amended Action Plan on the Asheville Recovers website under “Action Plan and Amendment” or request a physical copy at Asheville City Hall, 70 Court Plaza. Comment was taken during today's public hearing. Written comments and questions may be submitted by 5:00 p.m. on June 14 to cdbg-dr@ashevillenc.gov or on publicinput.com/b82874. The Infrastructure and People & Recovery Boards will review final recommendations on June 23.
Throughout his presentation, Mr. Shelton responded to various questions/comments from Council, some being, but are not limited to: how many multi-family units were lost and how many have been added as a result of Tropical Storm Helene; how many units will be added if the $9.2 Million from Multi-Family New Construction Program is reallocated to the Single-Family Home Repair Program vs. how many units will be added if the $9.2 Million stays in the Multi-Family New Construction Program; and what is the timeframe for this substantial amendment. Questions not readily answered will be provided to Council in a follow-up document.
Mayor Manheimer explained the state funding is still pretty fluid.
Councilwoman Roney said that with over a billion dollars worth of damage, we only
received $225 million.
Mayor Manheimer opened the public hearing at 5:49 p.m.
Six individuals spoke in opposition of this substantial amendment to reallocate funds from the Multi-Family New Construction Program and Infrastructure Program into the Single-Family Home Repair Program.
One individual spoke in support of the substantial amendment.
One individual wanted to make sure there are policies and procedures in place to address problems during the construction process.
Mayor Manheimer closed the public hearing at 6:13 p.m.
Mayor Manheimer said that consideration of approving a Substantial Amendment to the CDBG-DR Action Plan that reallocates $19.2 million to the Single Family Rehabilitation & Reconstruction Program, bringing the Program's total to $22.2 million will be considered at the June 23, 2026, formal meeting.
A. Ordinance Number 5224 - Ordinance amending the 2026-27 Fees & Charges Manual to incorporate changes to Parking Fund fees- Ordinance Book No. 37 - Page
Ms. Spangler said that on March 25, 2026, City Council was presented with options for adjusting Parking Fund fees and charges. The proposed changes include (1) expansion of parking meters into the South Sloper (a) up to 170 new meters; and (a) 2 Full-time employees and operating/capital costs - $480,000 - $166,000 recurring; and (2) other smaller operational changes and rate increases.
She then reviewed the FY 2027 proposed fee changes as follows:
Fee type | Current fee | Proposed fee | Change |
Wall Street Garage Monthly Permits | $120/$100/$85 | $140/$110/$100 | $20/$10/$15 |
Rankin Garage Monthly Permits | $110/$90/$75 | $130/$105/$90 | $20/$15/$15 |
Biltmore Garage Monthly Permits | $130/$110/$90 | $150/$120/$105 | $20/$10/$15 |
Monthly Permits Lots (Lots 13, 14, 18 and 19) | $60 | $65 | $5 |
Special Event Fee | $9 | $10 | $1 |
Failure to Pay Fee for Garages | $0 | $15 | $15 |
Special Event Fee for Lots | $0 | $10 | $10 |
Use of parking space for an entire day (metered, non-metered, and loading zone) without approved space closure | $0 | $100 | $100 |
Use of ADA parking space for an entire day without prior approved space closure | $0 | $200 | $200 |
New On-Street Monthly Permit Parking Locations | $0 | $30-50 | $30-50 |
The overall budget impact was reviewed as follows:
Revenue Increase | Cost Increase | Net | |
South Slope Expansion | $498,000 | $480,000 (Year 1) $166,000 (Ongoing) | $18,000 (Year 1) $332,000 (Ongoing) |
Wall Street Garage Monthly Permits | $75,000 | $0 | $75,000 |
Rankin Garage Monthly Permits | |||
Biltmore Garage Monthly Permits | |||
Monthly Permits Lots (Lots 13, 14, 18 and 19) | $4,500 | $0 | $4,500 |
Special Event Fee | $30,000 | $0 | $30,000 |
Failure to Pay Fee for Garages | <$5,000 | $0 | <$5,000 |
Special Event Fee for Lots | <$1,000 | $0 | <$1,000 |
Use of parking space for an entire day (metered, non-metered, and loading zone) without approved space closure | <$2,000 | $0 | <$2,000 |
Use of ADA parking space for an entire day without prior approved space closure | |||
New On-Street Monthly Permit Parking Locations | $0 | $0 | $0 |
Both revenue and expenses are included in the FY 2026-27 proposed budget (Parking Fund).
Ms. Spangler then reviewed the South Slope meter expansion next steps which begins in Summer-Fall of 2026 with public engagement and planning through Spring 2027 with implementation.
In response to Councilwoman Ullman regarding public engagement, Assistant Transportation Director Jessica Morriss said that this public comment is broader than Coxe Avenue - conversations with the rest of the South Slope businesses, i.e., multi-family housing developments and business associations. We want to know what might be useful on certain streets and certain blocks, i.e., location of loading zones, what type of permits are useful (monthly, 12-hour), curb cut space, location of Americans with Disabilities Act space, etc. We want to try to meet everyone’s needs as best we can. They can order the meters and start putting them on other streets and wait until the Coxe Avenue project is complete before installing them on that road.
In response to Councilwoman Roney, Ms. Morriss confirmed that the first hour is still free in the Civic Center Parking Garage.
Councilwoman Roney reminded everyone that Buncombe County offers a parking program for low-to-moderate income workers in downtown Asheville and they have a deck that is very close to the South Slope.
When Councilwoman Ullman asked about the addition of the 1 full-time supervisor and 2 part-time parking enforcement officers, Ms. Morriss said that they did not do a cost comparison of the expansion of parking enforcement just the South Slope with a private sector contractor. The Parking Study did say that a private sector contractor option should be considered for expansions in the future; however, that might be a more financially feasible option in locations farther away. She explained that they are just physically expanding enforcement into this area and they will not be restricted to just the South Slope. The addition of these positions will help in a lot of other ways for better coverage.
Mr. Kyle Turner felt that more information should be available on the contract for the parking meters.
Councilwoman Roney moved to adopt an ordinance amending the Fiscal Year 2026-27 Fees and Charges Manual to incorporate changes to Parking Fund fees. This motion was seconded by Councilwoman Smith and carried on a 5-2 vote, with Vice-Mayor Mosley and Councilman Hess voting “no.”
B. Ordinance Number 5225 - Ordinance Adopting the Fiscal Year 2026-27 Annual Operating Budget - Ordinance Book No. 36 - Page 32
Ordinance No. 5226 - Budget amendment in the amount of $100,000 in the General Fund to allocate budget from City Manager’s Contingency to fund the City’s annual contribution to nonprofits with which members of Council are associated (Economic Development Coalition). - Ordinance Book No. 36 - Page 40
Ordinance No. 5227 - Budget Amendment in the amount of $45,000 in the General Fund to allocate budget from City Manager’s Contingency to fund the City’s annual contribution to nonprofits with which members of Council are associated (Sports Commission) - Ordinance Book No. 36 - Page 41
Mayor Manheimer said that City Council held a public hearing on the budget on May 26, 2026, and no further comments would be accepted.
Mayor Manheimer said that there is a bill that would require a moratorium on tax reappraisals in the State of North Carolina which would require us to use the tax valuation from last year and not the new appraised rates for properties. It’s a Senate Bill and it passed the House on second reading today, and tomorrow will return for a third reading. If it passes it will go to the Governor. If the Governor signs it, it becomes law. If the Governor does not sign it, it may still become law without his signature. That is very disruptive to many cities across the state who are trying to adopt their budgets. But, in Committee today, another bill was amended that would exempt all Tropical Storm counties. That amendment passed in Committee but it doesn’t go for a vote until tomorrow. Hopefully that bill will pass.
Budget and Performance Manager Lindsay Spangler said this is the consideration of (1) Adoption of the Fiscal Year 2026-27 Annual Budget Ordinance; (2) Recusal of Mayor Manheimer from voting on the budget amendment in accordance with N.C.G.S.§ 14-234.3 (Economic Development Coalition); (3) Adoption of a Fiscal Year 2026-27 budget amendment in the amount of $100,000 in the General Fund to allocate budget from City Manager’s Contingency to fund the City’s annual contribution to the Economic Development Coalition; (4) Recusal of Councilwoman Turner from voting on the budget amendment in accordance with N.C.G.S.§ 14-234.3 (Sports Commission); and (5) Adoption of a Fiscal Year 2026-27 budget amendment in the amount of $45,000 in the General Fund to allocate budget from City Manager’s Contingency to fund the City’s annual contribution to the Sports Commission.
FY26 Adopted | FY27 Proposed | Change | ||
$ | % | |||
General Fund | $ 182.82M | $ 187.46M | $ 4.64M | 2.5% |
Water Resources | $ 49.45M | $ 53.16M | $ 3.72M | 7.5% |
Transit Services | $ 15.23M | $ 16.08M | $ 0.86M | 5.6% |
Stormwater | $ 9.32M | $ 12.92M | $ 3.60M | 38.6% |
Parking Services | $ 7.14M | $ 7.37M | $ 0.23M | 3.2% |
Harrah’s Center | $ 6.09M | $ 6.73M | $ 0.64M | 10.5% |
Street Cut Utility | $ 4.16M | $ 3.56M | -$ 0.60M | -14.4% |
Total | $ 274.20M | $ 287.28M | $ 13.08M | 4.8% |
Interfund Transactions | -$ 17.84M | -$ 11.69M | $ 6.14M | -34.4% |
Net Budget | $ 256.36M | $ 275.58M | $ 19.22M | 7.5% |
She then reviewed the balancing process to arrive at a balanced budget with a proposed tax rate of 37.84 cents.
She reviewed the FY 2027 General Fund investments in Public Health & Safety; Culture & Recreation; Community & Organizational Investments; and strategic investments.
She said the current City property tax rate is 44.19 cents per $100 of assessed value. Based on the revaluation numbers provided by the Buncombe County Tax Collector, City staff has calculated the revenue neutral tax rate to be 32.89 cents per $100 of assessed value. As of May 12, to balance the General Fund budget and partially budget the 2024 General Obligation Bonds, the proposed budget included a FY 2027 tax rate of $37.84 cents - 4.95 cents above revenue neutral.
The following chart shows changes since the proposed budget:
Budget Adjustments | Dollars $ | Tax Rate Impact (cents) |
Property Tax Collection Rate | -$ 0.47M | -0.17 |
BID Sales Tax for APD Personnel | -$ 0.23M | -0.08 |
Align with APD Academy Start | -$ 0.15M | -0.05 |
Community Center Security | -$ 0.11M | -0.04 |
Total | -$ 0.96M | -0.341 |
The changes will decrease the proposed property tax rate from 37.84 cents to 37.5 cents per $100 of assessed value. The new proposed tax rate is 4.61 cents above the revenue neutral rate (versus 4.95 cents).
The following chart shows the impact to homeowners (post-revaluation median home price is $478,500):
Property Value | Average Homeowner Impact (Annual) | Average Homeowner Impact (Monthly) |
$250,000 | $115 | $9.60 |
$350,000 | $161 | $13.44 |
$478,500 | $220 | $18.37 |
$550,000 | $253 | $21.12 |
$650,000 | $300 | $24.96 |
$750,000 | $346 | $28.80 |
$1,000,000 | $461 | $38.40 |
Below is the budget summary with adjustments:
FY26 Adopted | FY27 Proposed | |||
$ | % | |||
General Fund | $ 182.82M | $ 186.97M | $ 4.15M | 2.3% |
Water Resources | $ 49.45M | $ 53.16M | $ 3.72M | 7.5% |
Transit Services | $ 15.23M | $ 16.08M | $ 0.86M | 5.6% |
Stormwater | $ 9.32M | $ 12.92M | $ 3.60M | 38.6% |
Parking Services | $ 7.14M | $ 7.37M | $ 0.23M | 3.2% |
Harrah’s Center | $ 6.09M | $ 6.73M | $ 0.64M | 10.5% |
Street Cut Utility | $ 4.16M | $ 3.56M | -$ 0.60M | -14.4% |
Total | $ 274.20M | $ 286.79M | $ 12.59M | 4.6% |
Interfund Transactions | -$ 17.84M | -$ 11.69M | $ 6.14M | -34.4% |
Net Budget | $ 256.36M | $ 275.10M | $ 18.73M | 7.3% |
City Attorney Branham said that the BID allows for the levy of an additional tax to provide for additional services. The statutes state how a BID property tax can be utilized for those additional services. It must be within the BID boundaries and supplemental rather than supplant current services. There is also sales tax generated within the BID and that is not regulated in the article. The sales tax will be spent within the BID boundaries, but the sales tax does not have the same requirements as does the BID property tax.
There was considerable discussion by Council regarding the use of BID sales tax for Asheville Police Department personnel; the 75% debt service for General Obligation (GO) Bonds; the 401(k) 1% match for City employees (approximately $530,000); more data on community center security; and how much will property owners pay given the different property tax scenarios.
In response to Council members and throughout the discussion, Ms. Spangler said that the (1) staff recommendation (City Manager’s proposed budget) property tax would be $0.3750; (2) taking out the BID sales tax for APD would be $0.3758; (3) taking out the BID sales tax for APD and adding back in the 401 (k) 1% match would be $0.3777; (4) staff recommendation with adding back in the 401 (k) 1% match would be $0.3769; and (5) taking out the BID sales tax for APD, adding back in the 401 (k) 1% match and reducing the debt service on GO bonds from 75% to 50% would be $0.3718.
In response to Vice-Mayor Mosley when she earlier asked what service reductions would look like, City Manager Wesley said that her goal was to try not to reduce service delivery.
Councilwoman Roney said the cost of business is going up, and the business the City of Asheville does is serving the people who live and work here. As our residents and local businesses face an affordability crisis, it’s critical that we examine every dollar. She appreciated the impressive work of our new City Manager, DK Wesley, and our staff including the Human Resources team and Finance who are working to dig us out of systemic, inherited issues with a goal of maintaining services. While she believed we have the right team in place to get us moving towards a budget that reflects our community values, she only has two options in voting for the budget and today she’s not able to support tonight, in part related to the compensation structure that leaves more staff behind in living wages, the impact of removing the 401k match that our firefighter union wrote us about, cutting community center hours that are part of neighborhood resiliency, and a lack of prioritization for funding SFP for youth programing that historically served to reduce the opportunity gap but is also needed to prevent gun violence among our youth. Lastly, there are unanswered questions about disparities in our county tax structure, and there’s more work to do making sure commercial real estate like hospitals and grocery stores are paying their fair share instead of the burden of the valuation falling heaviest on residents.
Councilwoman Ullman moved to adopt the Fiscal Year 2026-27 Annual Budget ordinance with the following adjustments to the form presented by the City Manager: (1) Elimination of the $226,000 allocation of BID sales tax revenue for public safety; (2) Reinstatement of the additional 1% 401K employer contribution; and (3) An adjustment of the Fiscal Year 2026-27 General Fund tax rate to $0.3777 per $100 of assessed valuation. This motion was seconded by Vice-Mayor Mosley.
After more discussion, Council members shared their concerns and what they felt should or should not be considered in the budget adoption.
Councilwoman Ullman and Vice-Mayor Mosley rescinded their motion to adopt the Fiscal Year 2026-27 Annual Budget ordinance with the following adjustments to the form presented by the City Manager: (1) Elimination of the $226,000 allocation of BID sales tax revenue for public safety; (2) Reinstatement of the additional 1% 401K employer contribution; and (3) An adjustment of the Fiscal Year 2026-27 General Fund tax rate to $0.3777 per $100 of assessed valuation.
Councilman Hess moved to adopt the Fiscal Year 2026-27 Annual Budget ordinance with the following adjustments to the form presented by the City Manager: (1) Reinstatement of the additional 1% 401K employer contribution; and (2) An adjustment of the Fiscal Year 2026-27 General Fund tax rate to $.0.3769 per $100 of assessed valuation. This motion was seconded by Councilwoman Smith and carried on a 4-3 vote, with Vice-Mayor Mosley, Councilwoman Roney and Councilwoman Turner voting “no.”
Councilwoman Ullman moved to recuse Mayor Manheimer from voting on the budget amendment in accordance with N.C.G.S.§ 14-234.3 (Economic Development Coalition). This motion was seconded by Councilwoman Hess and carried unanimously on 6-0 vote (Mayor Manheimer did not vote).
Councilwoman Ullman moved to adopt a Fiscal Year 2026-27 budget amendment in the amount of $100,000 in the General Fund to allocate budget from City Manager’s Contingency to fund the City’s annual contribution to the Economic Development Coalition. This motion was seconded by Vice-Mayor Mosley and carried unanimously on 6-0 vote (Mayor Manheimer did not vote).
Councilwoman Ullman moved to recuse Councilwoman Turner from voting on the budget amendment in accordance with N.C.G.S.§ 14-234.3 (Sports Commission). This motion was seconded by Councilwoman Hess and carried unanimously on a 6-0 vote (Councilwoman Turner did not vote).
Councilwoman Ullman moved to adopt a Fiscal Year 2026-27 budget amendment in the amount of $45,000 in the General Fund to allocate budget from City Manager’s Contingency to fund the City’s annual contribution to the Sports Commission. This motion was seconded by Vice-Mayor Mosley and carried unanimously on a 6-0 vote (Councilwoman Turner did not vote).
C. Resolution Number 26-113 - Resolution authorizing submission of the 2026-2027 Annual Action Plan for the Community Development Block Grant Program (CDBG) and HOME Investment Partnerships Program (HOME) to the U.S. Department of Housing and Urban Development - Resolution Book No. 46 - Page 360
Mayor Manheimer said that City Council held a public hearing on this submission to the U.S. Dept. of Housing and Urban Development on May 26, 2026, and no further comments would be accepted.
Community Development Division Manager James Shelton said that this is the consideration of a resolution approving the submission of the 2026-2027 Annual Action Plan for the Community Development Block Grant Program (CDBG) and HOME Investment Partnerships Program (HOME) to the U.S. Department of Housing and Urban Development (HUD).
Mr. Shelton said that they received five comments during the open public comment period, and they were to fund Homeward Bound in some way.
There was a short discussion regarding funding for Homeward Bound, with Mr. Shelton explaining the different applications of Homeward Bound and that we have a cap of 15% of our grant for public services.
Councilwoman Turner moved to authorize the submission of the 2026-2027 Annual Action Plan for the Community Development Block Grant Program (CDBG) and HOME Investment Partnerships Program (HOME) to the U.S. Department of Housing and Urban Development (HUD), with an amendment to reduce the funding to the Water Resources Department Project to $403,030 and to fund Homeward Bound (Public Services) in the amount of $96,970. This motion was seconded by Councilwoman Roney and carried unanimously. .
D. Resolution Number 26-114 - Resolution amending Resolution Number 26-96 adopted on May 12, 2026, to authorize the additional award of Community Development Block Grant - Disaster Recovery (CDBG-DR) multi-family housing funds to Mountain Housing Opportunities/South Creek Development (Terrace at River Hills)- Resolution Book No. 46 - Page 364
Ms. Reid said that the following are the key takeaways from her presentation: (1) On May 12, 2026, City Council adopted a resolution authorizing the award of CDBG-DR multi-family housing funds to Commonwealth Development Corporation (District East Commons), and Laurel Street (319B Biltmore) totaling $8.39 million to construct 205 rental housing units; (2) Staff recommends also awarding $9.5 million to Mountain Housing Opportunities and South Creek Development for the top-ranked Terrace at River Hills project, to support 126 housing units; (3) The initial motion to award this project failed to move forward. The project is being reconsidered because it was the top-ranked, most shovel-ready applicant recommended by City staff. Unlike competing projects that rely on complex dependencies of future funding approvals, the land for Terrace at River Hills is vacant and ready for development; (4) Because there are no external funding contingencies, the City's investment is immediately actionable, avoiding the typical multi-year delays that often encumber affordable housing projects; and (5) To proceed, the City Council must authorize an amendment to the May 12 Council Resolution to additionally authorize an agreement between the City and developers Mountain Housing Opportunities/South Creek Development (Terrace at River Hills) and award CDBG-DR Multi-Family Housing funds for construction.
Regarding the CDBG-DR Multi-Family Program priorities, the Multi-Family Housing Construction Program must comply with federal regulations, and the notice of funding opportunity was refined to reflect additional priorities: (1) Disaster-Resilience Characteristics: Integrating Enterprise Green Communities (EGC) standards to mitigate multi-hazard risks, including the implementation of Adaptive Planning and Resilient Site Design for advanced flood protection - Within the framework of the NOFO and each project’s unique circumstances, staff commits to right-sizing the mitigation components of each project as the building plans and loan agreements are finalized, so that no project is burdened by unnecessary costs; (2) Mixed Income Housing: Properties developed under this program will have units available at a range of incomes and will operate as ‘mixed-income’ properties in compliance with LIHTC Income Averaging; (3) Deep Affordability: Eligible projects must set-aside at least 5% percent of units at rents affordable at 20% AMI, and for occupancy by households with incomes at or below 30% AMI for a period of 35 years. These units may be overlaid with project-based rental assistance offering housing to even the most financially vulnerable; and (4) Strategic: Ensure these funds provide a lasting impact to Asheville’s overall affordable housing while remaining in compliance with local, state and federal regulations.
Regarding the Notice of Funding Opportunity (NOFO), (1) A CDBG-DR Affordable Multi-Family Housing Construction notice of funding opportunity (NOFO) closed on February 25 - 13 applications were received and 12 eligible applications have been considered, totaling 1,481 units proposed, $453.5 million in total development costs; and $70.4 million in City CDBG-DR funds requested; and (2) Scoring criteria were published in the NOFO, consistent with the CDBG-DR Action Plan and Affordable Multi-Family Housing Construction Program Manual - Applications were scored using a 100-point scale, with points earned via: Financial efficiency; Affordability; Disaster resilience; Commitments to long-term viability; and shovel readiness.
Regarding the evaluation and recommendation process, (1) Context of available funding to provide gap financing to these projects: (a) The North Carolina Housing Finance Agency (NCHFA) is administering (1) tax credit awards and (2) the State’s CDBG-DR funding in this current cycle; and (b) The 2026 QAP has indicated that each Helene-impacted County will receive one State CDBG-DR funding award and, if funds remain, counties are eligible to receive a second State CDBG-DR award; and (2) Timeline and expediency: (a) The City’s CDBG-DR funds must be expended within six years of the obligation date (i.e. January 16, 2031); and (b) The tax credit financing process and multi-family development process are complex and take time.
To minimize risk, full funding is recommended, minimizing the risk of losing leverage or failing to meet federal expenditure milestones.
Specifics for the Terrace at River Hills - 110 River Hills Road, Asheville are (1) Developer: Partnership of Mountain Housing Opportunities and South Creek Development; (2) CDBG-DR Request: $9.5 million; (3) Location: Site is vacant, and has no existing building improvements on premises; and (4) Housing Type: Family - 4% LIHTC, 126 units (7 at 20%, 7 at 30%, 65 at 50%, 21 at 60%, 26 at 80%); 35 years affordability; Total Development Cost (TDC): $42,538,741; and 1, 2, and 3 bedroom units. She then reviewed the funding source, dollar amount, percentage of total and dollar per unit.
The rationale for recommendation is that fully funding this gap delivers immediate disaster recovery housing while honoring the integrity of the City's own competitive, transparent scoring process (1) Immediate & Shovel-Ready: The site is vacant with zero external funding contingencies; it requires only the City’s commitment to immediately unlock 4% tax credits and start construction this year; (2) Disaster Resilience: Enterprise Green Communities certification; (3) Higher Reserves: While NCHFA establishes baseline replacement reserve deposits, higher funding commitments were incentivized to protect long-term physical and financial viability; (4) Long-Term Community Impact: Secures 126 units of resilient, green family housing with a guaranteed 35-year affordability window (20%–80% AMI), in a highly walkable location near major employers and transit; and (5) Data-Driven & Validated: Named the top-ranked applicant based on strict evaluation criteria.
To advance Council’s Quality Affordable Housing vision and provide gap funding for the construction of affordable multi-family housing after Tropical Storm Helene, staff recommends a CDBG-DR Affordable Multi-Family Housing Construction Program funding commitment of $9.5 million to support the top-scoring Terrace at River Hills project totaling 126 units. On May 5, 2026, the Housing & Community Development Committee voted 2-1 to recommend this award.
President and CEO of Mountain Housing Opportunities Geoffrey Barton provided background information on MHO and gave statistics on what they have done so far since Tropical Storm Helene.
In response to Councilwoman Turner regarding programmatic requirement of floodproofing, Mr. Barton explained that they don’t want to provide needless resilience measures and will work with staff on ways to reduce those measures on their property.
In response to Councilman Hess, Mr. Barton said that they will follow-up on any individual complaint cases.
When Mayor Manheimer asked for public comment, she received none.
One individual spoke to Council regarding how the City boosts inclusivity yet when it becomes helping those in need the City almost always chooses those with wealth and power.
Mayor Manheimer adjourned the meeting at 8:48 p.m.
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Mayor
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City Clerk
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