News

City adopts budget that keeps tax rate level, raises water and sewer bills

By Lightning Reports, Published: June 5, 2025

The Hendersonville City Council adopted a $68.6 million budget on Thursday that keeps the tax rate at 52 cents/$100 valuation while increasing water and sewer rates by 8 and 9 percent respectively. The budget keeps the downtown parking rate the same, at $2/hour, and raises the stormwater fee by $1, to $8/month.

The budget was drafted by city administrators after council members set goals during a two-day budget retreat in February, including public safety, staff compensation, strong infrastructure, a strategic housing plan, growth management and community character, parks investment and transportation planning. Among the priorities council members set were resiliency and recovery after Hurricane Helene, debris removal, investing in critical infrastructure, affordable housing, emergency response planning and flood mitigation.

Only two city residents spoke during a public hearing. Ken Fitch, of Hyman Heights, praised city personnel, especially water and sewer workers and emergency responders, for their work during and after Helene. A member of the city Tree Board, Glenn Lange, objected to the new budget’s “payment in lieu of fee calculation” as too low. The calculation sets the amount developers may pay to compensate for removing trees if choose not to replant.

The budget adds eight employees: three in environmental services, three water and sewer line maintenance mechanics, a downtown maintenance worker and a motor vehicle fleet maintenance technician.

A major cost driver was health insurance costs.

“We’re particularly proud of the work because while we have had increased costs we were able to maintain the tax rate based on the growth the city has had,” City Manager John Connet said.

The budget funds a 4 percent cost of living increase for city employees and merit increases averaging 2.56 percent.

“We believe that cost of living increase probably leads the region,” Connet said.