TO: Mayor and Members of City Council
THRU: Dr. Douglas J. Hewett, ICMA-CM, City Manager
FROM: Taylor Floyd, Budget & Evaluation Director
DATE: August 10, 2026
RE:Title
Adopt Budget Ordinance Amendment to Make Technical Correction and Align Fiscal Year (FY) 2026-27 Ordinances with Authorized Funding and Update Project BudgetsTitle
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COUNCIL DISTRICT(S):
Council District(s)
All
b
Relationship To Strategic Plan:
Goal V: Financially Sound City Providing Exemplary Services
Executive Summary:
Council is asked to adopt Budget Amendments 2027-1 and 2027-3 to incorporate necessary updates that reconcile funding levels, ensure consistency across budget and ordinance documents, align funding with Council’s established directives, and appropriate debt funding authorized in the FY 2026-27 Capital Improvement Plan. These actions also include amendments that increase project budgets in accordance with approved funding sources and program requirements. The amendment includes:
• Aligning revenues and expenditures with the budgeted structure supporting scheduled debt payments in the Capital Improvement Fund.
• Increases project funding by $6,500 utilizing Passenger Facility Charges for the Airport Aqueous Film-Forming Foam (AFFF) Testing project.
• Revises revenue sources in the Airport Capital Project Fund from Airport Operating Fund Transfers to Passenger Facility Charges
• Updates grant match by $1,960 for Transit development projects, supported by a transfer from the Transit Operating Fund.
• Reclassifying the FAST Center Buildout project from the General Government Capital Project fund to the Transit Capital Project Fund to correspond with the function and asset classification of the project.
• Amendment 2027-3 appropriates operating funds to cover $121,784 in expenses to the Federal Forfeiture Project Fund.
Background:
These Budget Amendments reconcile ordinance amounts with funding levels incorporated into the FY 2026-27 Adopted Budget and to ensure consistency across all related financial documents. All revenues and expenditures associated with these items were previously authorized. The amendments update the budget to accurately reflect funding levels, align anticipated revenue sources with budget, and incorporate minor adjustments into project budgets.
Within the Capital Improvement Fund, this amendment aligns the revenue and expenditure structure with the scheduled debt payments established in the FY 2026-27 Capital Improvement Plan. This action ensures that the ordinance reflects the intended financing plan associated with these capital investments.
In the Airport Capital Project Fund, the amendment updates revenue source classifications for the Aircraft Rescue and Firefighting (ARFF) Vehicle Project, Passenger Boarding Bridge Replacement Project, and Terminal Improvements Part III to reflect the use of Passenger Facility Charges (PFCs). Additionally, the Airport applied for and received approval through the PFC Portal to use $6,500 in PFCs for the Aqueous Film Forming Foam (AFFF) Testing project. This amendment incorporates that approved funding to ensure the ordinance aligns with the final project financing structure.
The amendment also updates a transit grant match by $1,960 to reflect the revised allocation of eligible expenditures across multiple Transit development projects. These revisions correspond to differing grant match requirements associated with items funded at various cost share levels. The updated match amount will be supported by a transfer from the Transit Operating Fund. Additionally, the FAST Center Buildout project is reclassified to the Transit Capital Project Fund to align the project with the department responsible for the asset once completed, ensuring consistency between project ownership, function, and accounting classification.
Amendment 2027-3 appropriates funding from the Fayetteville Police Department operating budget to cover $121,784 in cost recovery associated with the Equitable Sharing Program Compliance Review. The U.S. Department of Justice identified certain expenses as ineligible under MLARS program guidelines, and the City is required to reimburse these amounts to maintain compliance with the program’s requirements. This action provides the necessary appropriation from the General Fund to fulfill the cost recovery obligation and ensure continued participation in the Equitable Sharing Program.
Issues/Analysis:
None.
Budget Impact:
The General Fund will be reduced by $121,784. The updates align amounts with the adopted budget, and the project changes are supported by other revenue sources.
Options:
1. Adopt Budget Ordinance Amendment 2027-1 and 2027-3 as presented.
2. Do not adopt Budget Ordinance Amendment 2027-1 and 2027-3 and provide further direction to staff.
Recommended Action::Recommended Action
Staff recommends that the Council adopt Budget Ordinance Amendment 2027-1 and 2027-3.
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Attachments:
Budget Ordinance Amendment 2027-1
Budget Ordinance Amendment 2027-3