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Fayetteville City Council adopts $315M budget for fiscal year 2026: Lowest property tax in 30 years

By Staff Report, posted Jun 10, 2025 on BizFayetteville.com

Fayetteville City Council adopted the city’s fiscal year (FY) 2026 Operating Budget of $315.2 million and Capital Improvement Plan of $91.8 million during the City Council Regular Meeting on June 9. The budget passed with a 9-1 vote.

Despite economic challenges, including reduced sales and vehicle tax revenue, the budget maintains essential services, invests in public safety and infrastructure and has the lowest property tax rate in 30 years at $0.4495 per $100 value.  

The rate remains above the revenue-neutral level to support long-term priorities without overburdening taxpayers. Of note, there are no increases for stormwater or solid waste fees, and FAST transit fares remain the same. 

“This budget is a win for Fayetteville,” said City Manager Douglas J. Hewett in a press release. “It reflects our commitment to safety, neighborhoods and economic development while also being sensitive to household affordability.” 

Substantial capital investments include $30.7 million for stormwater improvements, $20.6 million for public safety and technology and $9.5 million for parks and recreation. Additionally, the city council came to a consensus to include $6.2 million for additional community needs such as public safety cameras, neighborhood enhancements and sidewalk expansions. 

The city is investing $4.6 million in employee compensation, offering a 4% merit increase and a 1% increase to 401(k) contributions. An additional $1.5 million was included in the budget to address pay compression in public safety. 

“We’ve developed a budget that balances today’s needs and tomorrow’s opportunities,” Hewett added in a press release. “It strengthens services, supports our workforce and positions Fayetteville for long-term success.”

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