Downtown Service District Sales Tax Budget Amendments
At a glance
- What: Two budget amendments totalling $265,000 from the downtown service district's share of county sales tax: $175,000 for business support during three downtown construction projects and the remainder (about $90,000) for new solar-powered holiday decorations.
- Where it stands: Previewed at the October 8 briefing; planned for the consent agenda on October 13, 2026. The vote is not in the processed record yet.
- Next: Staff to send follow-up information, including data on lighting and crime reduction, before the meeting.
Background
- The service district was created in 2024 and is funded mainly by downtown property tax, plus a share of county sales tax: $487,000 received before July 21, 2026 and about $400,000 expected in FY2027. Funds must be spent downtown.
- Existing FY27 uses: an event support grant program, about $97,000 for six holiday commemorations, and extra police funding for downtown e-bikes. After these amendments about $223,000 would remain.
- Construction projects covered: North Lexington sidewalk maintenance, Coxe Avenue streetscape, and Eagle and Market Streets streetscape. The Asheville Downtown Association would run branding and wayfinding programs; the city keeps construction management.
Concerns
- Council Member Turner wanted broader business input than the association and asked whether other needs such as safety and mental health rank higher.
- Council Member Ullman asked for evidence that the association's park lighting reduced crime.
- Staff said the association's board has composition requirements and voted to support the request.
Sources
- City Council minutes, August 25, 2026: https://docs.google.com/document/d/1wVG0jftidT2WUasy7Edl4yMoYLkmQGlmwZ64Q1BUmZ8/edit
- https://youtube.com/watch?v=5lHSiRrfdpk (Council Agenda Briefing Worksession, 2026-10-08; auto-generated captions)
Discussion time
About 12 minutes across 1 meeting (from transcript timestamps; approximate).
| Meeting | Minutes |
|---|---|
| 2026-10-08 - Council Agenda Briefing Worksession | 12 |
Log
- 2026-10-08 - Council Agenda Briefing Worksession - Briefing by Assistant City Manager Woody; council members raised business representation and asked for lighting and crime data.
- 2026-08-25 - City Council - Consent: three-year Event Support Grant renewal with the Asheville Area Arts Council ($76,014 a year, up to $228,042; Resolution 26-163), now limited to events inside the downtown service district boundaries in years funded by its sales tax share. Unanimous.