TO: Mayor and Members of City Council
THRU: Jeffrey Yates, Assistant City Manager
FROM: Kimberly H. Leonard, NCLGBO, NCLGFO, CPA, MPA, Budget and Evaluation Director
DATE: June 9, 2025
RE:
Title
Adoption of the Fiscal Year 2025-2026 Budget Ordinance, the FY 2025-2026 Fee Schedule, FY 2025-2026 Capital and Special Project Ordinances, Amendments, and Close-Outs
end
COUNCIL DISTRICT(S):
Council District(s)
All
b
Relationship To Strategic Plan:
Goal 5: Financially sound City providing exemplary City services.
Objective 5.1: To ensure strong financial management with fiduciary accountability, and plan for future resource sustainability by aligning resources with City priorities.
Executive Summary:
The City of Fayetteville's FY 2026 Recommended Operating Budget totals $315.2 million and $92.3 million in capital investments. Developed through a transparent and data-informed process, the budget aligns with City Council's strategic priorities: public safety, housing and neighborhood revitalization, youth engagement, economic growth, and transportation. Key investments include public safety technology upgrades, compensation enhancements for employees, and infrastructure improvements citywide. The budget reflects economic realities such as declining motor vehicle and sales tax revenues, while maintaining core services and offering the lowest property tax rate in 30 years at $0.4495. No increases are proposed for stormwater, solid waste, or transit fares.
The budget process spanned several months and incorporated input from Council, staff, and residents. It began with the February Strategic Planning Retreat and continued with formal presentations in April and May on the operating budget, capital improvement program, and tax rates. Work sessions on May 15, 22, and 29-along with the June 2 "parking lot" review-allowed Council to refine priorities and add $6.2 million in targeted initiatives. A public hearing on May 27 ensured the opportunity for commu...
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