Prepared for the Asheville Area Chamber of Commerce, this presentation illustrates Asheville's revenue and expenditure challenges as they relate to pending General Assembly bills, sales tax allocations, and possible solutions to this year's budgetary issues.

2. Nonfarm Employment (Two-Year Comparison)
Metro Area Feb 2008 - Feb
2010
Feb 2010 -
Feb 2012
Asheville -7.60% 6.00%
Burlington -10.50% 5.20%
Charlotte-Gastonia-Rock Hill -8.10% 8.90%
Durham-Chapel Hill -4.80% 4.60%
Fayetteville -0.90% 1.20%
Goldsboro -6.00% 1.40%
Greensboro-High Point -9.70% 2.00%
Greenville -4.40% 4.90%
Hickory-Lenoir-Morganton -12.00% 2.10%
Jacksonville 2.10% 1.90%
Raleigh-Cary -6.30% 7.60%
Rocky Mount -10.90% -1.40%
Wilmington -8.70% 2.90%
Winston-Salem -7.60% 3.30%
Job Growth

3. General Fund Expenditures

4. Service Demands
•Highest NC daytime to resident population ratio
(2010 US Census)
• Daytime population grows from 83,570 to over
127,000
• Highest Fire/Emergency Calls per 1000 people
(SOG Benchmarking Study)
• $1.8 Million/year AFR Impact

5. Financial Trend Analysis
Inflation Adjusted General Fund Spending
GF Actuals
FY 2001-02 $61,926,493
Population* 68,889
Per Capita $898.93
FY 2011-12 $67,221,231
Population** 83,393
Per Capita $806.08
% Change 8.55%
% Change 21.05%
% Change -10.33%

6. General Fund Revenues
Property Tax
52.7%
State Utility Taxes
8.0%
Sales Taxes
18.9%
Sales &
Services/Permits
10.4%
Other
10.0%

7. 3.3%
2.4%
3.4%
41.4%
2.3%
4.2%
3.5%
0.7%
1.2%
0.7%
0%
1%
2%
3%
4%
5%
FY04 FY05 FY06 FY07* FY08 FY09 FY10 FY11 FY12 FY13
est.
Property Tax Base Growth
* revaluation

8. 10 Year Property Tax Rate Trend

9. Impacts of Recession
$0
$4
$8
$12
$16
$20
FY 03 FY 04 FY 05 FY 06 FY 07 FY 08 FY 09 FY 10 FY 11 FY 12
proj.
FY 13
bud.
Sales Tax Revenue Trends
(In Millions)

11. General Fund Revenue: Licenses
and Permits
Licenses and Permits FY 12-13
Building Safety Fees $2,314,100
Local Utility Franchise $460,000
Business Privilege Licenses $1,700,000
Motor Vehicle Licenses $310,000
Other $559,900
Total Licenses & Permits $5,344,000

12. Budget Starting Point
Revenues $1,600,000
Property Tax (1.75%) $775,000
Sales Tax (5.00%) $725,000
Expenditures $3,800,000
Cola (3.00%) $1,800,000
Insurance/Reserves $1,000,000
Inflation Supplies/Contracts $1,000,000
Revenues Over (Under) ($2,200,000)

13. Budget Balancing Strategies:
March 2013
Revenues
Fee Adjustments $940,000
WNC Nature Center $150,000
Expenditures
Reengineering/Administrative Cuts
Bele Chere $200,000
Retirement Incentive $600,000
Total $2,548,000

15. Budget Variables: April 2013
Legislation
Legislation FY 14 FY 15
HB 4 - Unemployment Insurance $260,000
HB 264 - ETJ Development Fees $219,000 $219,000
HB 488 - Water Transfer $1,900,000 $1,900,000
HB 568 - Airport Deannexation $193,000 $193,000
SB 363 - Privilege Licenses $0 $1,400,000
SB 394 - Utility Franchise/Sales
Tax/Beer and Wine TBD TBD
Totals $2,572,000 $3,712,000

16. Budget Balancing: Community Input
Target $4,000,000
Citizen Input
Property Tax Increase 2 cents $2,200,000
Defer Infrastructure and Equipment $1,000,000
Park, Rec and Cultural Arts Deductions $1,500,000
Reduce Administration and Support
Positions $600,000
Total $5,300,000

17. Budget Balancing: Community Input
Target $4,000,000
Options Not Chosen
Close Fire Station $500,000
Reduce Transit $300,000
Reduce Police Patrol $500,000
Reduce Affordable Housing Loans $250,000
Total $1,550,000

18. Budget Balancing: Recommendations
Revised Target $3,529,000
March Balancing Strategy $2,548,000
Property Tax Increase (1 cent) or
Service Reductions $1,000,000
Total Budget Balancing Strategies $3,548,000
Revenues Over (Under) Expenditures $18,300

19. Budget Balancing: Contingencies
Water system transfer (1,900,000)
Defer contracted services/other line items 1,000,000
Defer Grant Center Splash Pad design 350,000
Defer building roof replacements 100,000
Defer traffic calming/safety 135,000
Defer outside agency grants 133,000
Defer public art allocation 85,000
Defer recycling cart replacements 70,000

20. Budget Balancing: Contingencies
HB418 Ramsey
County Cultural/Rec. Authority
Transfer City Parks/Rec ($8.4m)
Reduce Tax Rate (1 cent = $1.1m)
Selectively Restore Cuts
Tackle Deferred Infrastructure
Increase Economic Development

21. Community and Economic
Development Initiative
Goal: Align Partners around 3 Focus Areas:
• Vibrant Riverfront and Mixed Use
Neighborhoods
• Downtown Vitality
• Job Growth

22. Budget Schedule
What When
Finance Committee: Update on key issues for next year's budget Tues., Feb. 12
Budget Work Session Tues., Mar. 12
Budget Work Session Tues., Mar. 19
Proposed Fees & Charges Presented to Council Tues., Mar. 26
City Council Budget Town Hall Meeting Wed., Apr. 3
Community Budget Input Meeting Thurs., Apr. 18
Budget Work Session Tues., Apr. 23
Budget Work Session Tues., May 14
Recommended Budget to City Council Tues., May 28
Budget Public Hearing Tues., June 11
Council to Vote on Proposed Budget Tues., June 25

23. City of Asheville Budget Quiz Answers
1. Excluding the influx of tourist visitors, does the daytime
population:
Answer: Increase significantly
2. Over the past ten years, do you think the city property tax
rate has:
Answer: c. Stayed the same
3. From 2002 – 2012, in real inflation adjusted dollars, city
spending has:
Answer: d. Decreased somewhat
4. What happens to a Dollar of retail sales tax that is created in
Asheville in 2012?
Answer: d. 4% is returned to Asheville

24. City of Asheville
Budget in a Box

25. Currently the average resident in Asheville pays
$544 /year in property taxes for Police and Fire
services.
What are you willing to pay for these services?
a) Keep it the same: $_544_
b) Pay 5% more for increased
services/performance: $ 571
c) Pay 5% less for decreased
services/performance: $ 517

26. Currently the average resident in Asheville pays
$30/year in property taxes for Transportation
Planning and Transit .
What are you willing to pay for these services?
a) Keep it the same: $_30_
b) Pay 5% more for increased
services/performance: $ 31.50
c) Pay 5% less for decreased
services/performance: $ 28.50

27. Currently the average resident in Asheville pays
$33/year in property taxes for Recreation Centers
and Programs.
What are you willing to pay for these services?
a) Keep it the same: $_33_
b) Pay 5% more for increased
services/performance: $ 34.65
c) Pay 5% less for decreased
services/performance: $ 31.65

28. Currently the average resident in Asheville pays
$39/year in property taxes for Community and
Economic Development.
What are you willing to pay for these services?
a) Keep it the same: $_39_
b) Pay 5% more for increased
services/performance: $ 40.95
c) Pay 5% less for decreased
services/performance: $ 37.05

29. City of Asheville Budget Quiz Answers
1. Excluding the influx of tourist visitors, does the daytime
population:
Answer: Increase significantly
2. Over the past ten years, do you think the city property tax
rate has:
Answer: c. Stayed the same
3. From 2002 – 2012, in real inflation adjusted dollars, city
spending has:
Answer: d. Decreased somewhat
4. What happens to a Dollar of retail sales tax that is created in
Asheville in 2012?
Answer: d. 4% is returned to Asheville