Recommended FY2026 budget presented to Fayetteville City Council

By Staff Report, posted May 13, 2025 on BizFayetteville.com

City Manager Dr. Douglas J. Hewett submitted to the Fayetteville City Council his recommended $312.5 million Fiscal Year 2026 operating budget, outlining priorities to keep the city fiscally sound while investing in public safety, infrastructure and employee compensation. This recommended budget was presented by Assistant City Manager Jeffrey Yates.

Key proposals in the FY 2026 Recommended Budget include:

A proposed total ad valorem tax rate of 44.95 cents per $100 of assessed value, reflecting a $0.13 decrease from FY 2025 but 6.19 cents above the revenue-neutral rate, generating $14.5 million in additional revenue for critical services.
A continued commitment of $114 million to community safety, including $71.7 million for Police and $39.7 million for Fire, with resources allocated for the step pay compensation and a comprehensive public safety salary study.
A 4% midpoint compensation increase for non-step employees and an added 1% 401(k) contribution for non-sworn personnel to remain competitive amid a tight labor market.
Investment in infrastructure and service maintenance:
- $6.3 million for street and stormwater projects,
- ongoing implementation of the new financial system
- no rate increases for stormwater or solid waste services
$3.1 million in new program enhancements including 17 positions to strengthen construction management, marketing and communications, legal support, IT security, fire inspections and more.

“This proposed budget stays true to our core principles of focusing on employees, maintaining services, and investing in high-value, high-impact additions,” Hewett shared in a press release. “It’s a balanced budget that responds to our community’s evolving needs.”

City Council will review the recommended budget during budget work sessions on May 15 and May 22, followed by a public hearing on May 27. One additional budget work session will take place on May 29 with a Regular Work Session on June 2 to resolve any outstanding issues.

The budget documents and all questions filed by Council will be collected and displayed for public viewing on the Budget Chronicles Page on the City of Fayetteville website. Final adoption is required by June 30.

The full budget presentation can be viewed on the City of Fayetteville’s YouTube page here.

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