ASHEVILLE, N.C. (828newsNOW) — Buncombe County commissioners have officially kicked off work on the Fiscal Year 2027 budget, holding their first in a series of planning sessions on Nov. 13. The meeting focused on reviewing past financial performance, updating the current year’s status and outlining early considerations for the upcoming fiscal year, which runs July 1, 2026, through June 30, 2027.

FY25: Stronger revenues, lower spending

County staff said fiscal year 2025, which covered July 2024 through June 2025, was marked by economic uncertainty following Tropical Storm Helene. Despite that, revenues outpaced expectations and departments cut costs more than planned.

Revenue highlights included:

• Revenues came in $5.2 million above August projections.
• Motor vehicle property tax collections exceeded forecasts by $1.2 million.
• Ambulance revenue increased $1.8 million over projections in the final quarter.
• Investment earnings were $1 million above budget.

On the spending side:

• Expenditures were 99.4% accurate to projections, coming in $2.3 million lower than expected.
• About $600,000 in expenses were carried into FY26.
• Departments trimmed operating costs beyond what was required.

FY26 budget update

North Carolina law requires all county budgets to remain balanced, and Buncombe continues to use structural balance — recurring revenues for recurring expenses and one-time revenues for one-time costs.

Updated FY26 revenue and expenditure figures through early November show the county tracking closely with its amended budget. A full breakdown is available through county budget documents.

Early FY27 budget pressures

Commissioners face a challenging fiscal landscape as they plan for FY27. Post-Helene declines in sales and property taxes are still affecting revenues, and staff outlined several major issues:

• Code enforcement: Nearly 2,200 complaint cases have been handled since 2022, prompting a request for more staff and resources.
• Deaverview Mountain Park: The nearly 600-acre park needs phased operational funding ahead of its expected 2029 opening.
• Physical security: More than 60 county facilities and 1,800 employees are covered under a system with no dedicated budget or full-time manager. Staff recommend creating a security equipment replacement plan.
• Vehicle replacements: One-third of county vehicles will need replacing within five years, at an estimated $15 million.
• Professional development: Training and certification budgets have been reduced in recent years and will need replenishing.
• Fund balance: The county’s unaudited available fund balance sits at 14.6%, below the policy target of 15-20%. If the final audit confirms the drop, the county will need a plan to restore reserves.
• Retiree health costs: The county faces a $123 million long-term commitment to post-employment health benefits and needs $68.1 million in contributions.
• Debt service: FY27 debt service is projected at $25.1 million, tied to existing debt, 2022 bonds and capital needs.

Community investments under review

Commissioners will also consider discretionary funding for community programs. Prior-year allocations included:

• Aging services: $375,000
• Arts funding: $129,788
• Conservation easements: $270,000
• Early childhood fund: $3.9 million
• Education contracts: $239,000
• Homeowner grants: $300,000

Affordable housing and Strategic Partnership grants were not funded in FY26 but may return for consideration.

Helene recovery and preparedness

The county continues work on recovery projects tied to Tropical Storm Helene. Thirty-one county-led projects feed into a larger recovery and preparedness plan that includes more than 100 action items across Buncombe’s municipalities. Commissioners are scheduled to vote Nov. 18 on adopting the Recovery Plan. The Preparedness Action Plan includes 49 action items and nearly 200 subtasks.

Federal impacts and fire district plans

County officials say shifts in federal legislation, particularly tied to Medicaid and SNAP, could affect funding. Delays related to the recent federal government shutdown may also impact reimbursements.

Commissioners are also exploring the creation of a single countywide fire tax district to address uneven tax rates, staffing challenges, and inconsistent service levels across Buncombe’s 19 fire districts. Fire chiefs and county staff are meeting biweekly with a goal of presenting a unified district plan this spring.

What’s next

The next budget work session is set for Jan. 22 and will focus on the county’s capital improvement plan. Additional work sessions are scheduled ahead of the recommended FY27 budget presentation on May 5. Commissioners plan to vote on the final budget June 2.

Budget documents and meeting videos are available on the county’s website and Facebook page.