Black Mountain Town Council mulls $2.4 million budgetary shortfall

Officials examine capital items and proposed new positions

Fred McCormick
The Valley Echo
April 29, 2024

Black Mountain Mayor Mike Sobol, left, Vice Mayor Archie Pertiller, Jr., center, and Town Councilmember Doug Hay discuss the 2024-25 budget in an April 25 workshop. Photo by Fred McCormick

Black Mountain elected leaders are considering cuts to 2024-25 budgetary requests in an effort to reconcile a $2.4 million shortfall, following an April 25 workshop.

The discussion, which focused on 19 proposed capital expenses and a dozen new or expanded personnel positions, was continued through the town council agenda meeting at 5 p.m., Thursday, May 9.

Budget planning began in January, when elected officials and town staff gathered in Christmount to discuss upcoming priorities in an annual retreat. Town Manager Josh Harrold hosted the first in a series of special call meetings in March, as heads from the town’s 11 departments presented the governing board with requests for the next fiscal year, which begins July 1.

Those requests exceeded the anticipated general fund budget, Harrold told the town council.

“I would not feel comfortable appropriating $2.4 million from the fund balance to balance it,” he said. “So, we’re going to have to talk about cutting some stuff, and the other option is increasing fees, in some fashion.”

Harrold presented the board a list of proposed capital investments totaling $1.5 million, ranging from new lighting for Veterans Park to a recommendation to pave a portion of the field at Lake Tomahawk, allowing for additional parking. New positions, including a dedicated sanitation supervisor, three new firefighters and a public information officer, were included among the items town council considered.

The town increased its annual revenue in the current fiscal year, last July, raising the property tax rate by 1.5 cents per $100 of valuation. The move generated an additional $153,000 per penny, according to Harrold.

“This year, it’s about $160,000, so if you raise taxes by a penny, you increase revenues by $160,000,” he said. “Just to remind you, beginning in January of 2025, (Buncombe County) will do its revaluation, so the next budget we do will be with those numbers.”

Cost of living adjustments (COLA) for town staff, which Harrold proposes at 5%, account for approximately $450,000 of general fund expenses.

“If you reduce that by 1%, it’s roughly $90,000,” the town manager told the council.

Black Mountain Town Councilmember Pam King discusses the 2024-25 budget, April 25, during a special call meeting. Photo by Fred McCormick

“If we’re looking at items to cut, I’m looking at the Grey Eagle cameras,” Councilmember Pam King said of a proposed $10,000 expense. “It just sounds to me like a lot of money for not a lot of revenue. Maybe we should stop renting out the Grey Eagle for a while.”

Mayor Mike Sobol and Councilmember Doug Hay scrutinized a recommendation to pave an overflow parking area at Lake Tomahawk for $45,000.

“Why would we want to pave it? It’s been fine for years for overflow,” Sobol said. “When the swim team has their meets down there they have to use it, and it doesn’t turn into some muddy lot. It’s fine the way it is.”

The town council agreed to cut the recommendation, as King considered the necessity of spending $85,000 to install lights in the tunnel connecting the north and south sides of Veterans Park.

“I think it would be a great thing and it’s something we’ve talked about for a long time, but it’s a lot of money,” she said. “Do we have any other options?”

Alternatives are limited because the N.C. Department of Transportation owns the property, Harrold replied.

“Unfortunately, with that being their property we have to follow their rules,” he said. “If they tell us we have to use this design, then we’re stuck with that. In my opinion, it’s very expensive.”

While town council members indicated they would consider eliminating several capital projects, the board moved to continue the discussion to allow officials additional time to consider options.

“Before we close this meeting, I hope we look at this budget and understand we’re spending more than what we make,” Sobol said, before adjourning the meeting.