Fayetteville City Manager presents recommended FY2027 Budget

By Staff Report, posted May 18, 2026 on BizFayetteville.com

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City Manager Douglas Hewett presented the Fiscal Year 2027 Recommended Operating Budget to the City Council and the public at the Budget Work Session on Thursday, May 14. The recommended budget totals $322,813,979.  

The budget reflects the City's commitment to delivering quality public services while remaining fiscally responsible.   

Key highlights of the FY-2027 Budget include: 

• Tax Rate Adjustment: The recommended budget proposes a property tax rate of $0.4795 — still one of the lowest in the City's history. The proposed $0.03 increase is divided purposefully across two areas: operating needs and long-term capital investment.
  • The first cent ($0.01) supports the City's operating budget, is directly aligned with City Council priorities, and supports current services. 
  • The remaining two cents ($0.02) are dedicated to the Capital Improvement Plan (CIP), previously presented to City Council on April 8. This additional funding allows the City to address facility maintenance, expand public safety capabilities and enhance recreation and mobility infrastructure. 
  • The CIP is one of the City's most important long-term planning tools. While the annual operating budget often receives the most attention, the CIP translates Council priorities and community needs into tangible investments that shape residents' daily lives and the City's long-term sustainability. 
• Public Safety Investment: The recommended budget allocates $120 million to public safety, to include: 
  • Fayetteville Police Department — $76 million, a $2.54 million increase 
  • Fayetteville Fire Department — $42 million, a $2.1 million increase 
  • Office of Community Safety — $2.18 million, a $287,000 decrease 
• Mental Health Response Expansion: Two new mental health response units will be added to the Office of Community Safety to assist residents in crisis while minimizing law enforcement response, when possible. This OCS work, along with efforts to reduce violence, address homelessness, and support youth programs, reflects a new and more balanced approach to community safety. 
• Employee Compensation: The recommended budget invests in the City workforce through step increases for public safety personnel, a 4% pay raise for all City employees, and a 1% increase in the City's 401(k) contribution. 
• Solid Waste Fee: To offset rising fuel costs, the recommended budget proposes a $10 annual increase to the Solid Waste Fee. 

"This budget is built on a simple but powerful commitment: delivering quality, sustainable public services that allow our communities to thrive and our businesses to grow," City Manager Douglas Hewett said in a press release. "It ensures we continue providing the services our residents rely on, while remaining fiscally responsible and advancing City Council priorities. We recognize that national and global events can shape our local community in ways we don't always anticipate. That is precisely why careful planning and strong leadership matter more than ever." 

The City Council will review the recommended budget during the budget work sessions on May 21 and May 28.

All budget work sessions are open to the public and can be watched live on FayTV, the City's government access channel, available on Spectrum Channel 7, at FayTV.net, and on the FayTV app on most streaming devices. 

During the budget work sessions, Council members will deliberate on funding priorities, ask questions and request adjustments. Additional sessions may be scheduled as needed to ensure a thorough review. 

A public hearing will be held on Monday, May 26 at 6:30 p.m. during the regular City Council meeting, during which community members will have a formal opportunity to share feedback on how City funds are allocated. 

Residents who wish to speak must sign up by 5 p.m. the day of the meeting through one of the following: 

• Online: FayettevilleNC.gov/Clerk 
• Phone: 910-433-1989 
• Email: CityClerk@FayettevilleNC.gov 

Residents can also share their priorities through an interactive budget tool available on the City's website at FayettevilleNC.gov/Budget. The tool presents a simple but meaningful exercise: How would you distribute $100 of City funds? Participants are asked to allocate dollars across City services, reflecting what matters most to them. The responses gathered through this tool provide City leaders with direct insight into community priorities as the budget process moves forward.  

Following the public hearing on May 26, the City Council may adopt the budget at any time, though adoption is required no later than June 30 to comply with state law.  

The recommended FY-2027 budget can be reviewed at FayettevilleNC.gov/Budget.

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