ASHEVILLE, N.C. (828newsNOW) — Asheville City Council will meet in a special session next week to determine whether the city’s newly adopted budget — and property tax rate — need to be revised after changes in state law upended local government budgets across Buncombe County.

The special meeting is scheduled for 5 p.m. Wednesday, July 15, in the Council Chamber at City Hall.

The council approved its fiscal year 2027 budget in June, adopting a spending plan of about $275.8 million supported by a 37.69-cent property tax rate per $100 of assessed value. The rate was slightly lower than the 37.84-cent rate originally proposed but remained about 4.8 cents above the revenue-neutral rate.

Now, city leaders say recent legislation approved by the North Carolina General Assembly has created uncertainty over whether that budget can remain in place.

The issue stems from two state laws affecting local governments that recently completed property revaluations, including Buncombe County.

Gov. Josh Stein signed Senate Bill 474 into law Wednesday, saying it provides legal clarity for local governments adopting budgets after the statutory deadline but does not solve the challenges facing Buncombe County and other communities recovering from Tropical Storm Helene.

“When I signed Senate Bill 889, I called on the General Assembly to pass Senate Bill 474 to protect Buncombe County and other jurisdictions recovering from Hurricane Helene,” Stein said in a statement. “The version sent to my desk does not do that. Instead, it continues to impede Buncombe County’s recovery efforts.”

Stein said he signed the measure because it “provides legal clarity to local governments adopting new budgets after the statutory deadline.”

Council member Bo Hess said in a social media post Buncombe County’s next move will determine whether Asheville must act.

“The county’s decision … will be the defining factor determining whether Asheville will need to act in order to address our budget shortfall,” Hess said in a social media post announcing the special meeting.

County commissioners are expected to discuss their options during a meeting Tuesday, one day before the City Council convenes.

Buncombe County officials say the new laws have forced them to reopen a budget they adopted just weeks ago.

County Manager Avril Pinder has said commissioners are left with two difficult choices. They can adopt a revenue-neutral tax rate using the county’s newly completed 2026 property revaluation, which officials estimate would reduce General Fund revenue by about $24.8 million, requiring significant budget cuts. Or they can temporarily return to 2021 property values and adjust the tax rate to generate enough revenue to fund the budget already approved.

Buncombe County Board of Commissioners Chair Amanda Edwards said the legislation undermines months of work to build a budget based on updated property values that more accurately reflect current market values.

City Council member Kim Roney said in a social media post the legislation also delays the benefits of Buncombe County’s property revaluation, which she said was intended to make residential property taxes more equitable.

Roney said that if Asheville keeps its current spending plan intact, the city may ultimately have to increase its property tax rate to generate enough revenue. She also called for more transparency about how reverting to older property values would affect residential and commercial taxpayers.

The July 15 meeting will allow council members to review the latest developments from Raleigh, hear how Buncombe County plans to proceed and decide whether Asheville’s recently adopted budget needs to be amended.

Information on attending the meeting is available here.