TO: Mayor and Members of City Council
THRU: Jeffrey Yates, Assistant City Manager
FROM: Michelle Brooks, CPA, Interim Budget and Evaluation Director
DATE: June 1, 2026
RE:Title
Discussion of the Fiscal Year 2026-2027 Budget Ordinance, and Attachments for the FY 2026-2027 Fee Schedule, and FY 2026-2027 Capital and Special Project Funding, Amendments, and Close-OutsTitle
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COUNCIL DISTRICT(S):
Council District(s)
All
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Relationship To Strategic Plan:
Goal 4: Financially sound City providing exemplary City services.
Objective 4.1: 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 2027 Recommended Operating Budget totals $325.8 million and $108 million in capital investments and $3.7 million for Special Revenue Fund for federal program funding. Developed through a transparent and data-informed process, the budget aligns with City Council's strategic priorities: community safety, economic growth through the City, housing and neighborhood revitalization and refurbishment, and improve and transportation, transit and overall connectivity. Key investments include community safety expansion of 2 mental health response units, 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 continuing one of the lowest property tax rates in 30 years at $0.4795. A $10 increase for solid waste to cover increased fuel costs. No increases are proposed for stormwater 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...
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