Fayetteville Today

The City of Fayetteville adopted the fiscal year 2025 budget, totaling $320.9 million on June 24. Councilmembers unanimously voted to adopt the budget during a Regular Council meeting held in the council chambers at city hall.

“This council did not take lightly and they took into consideration every impact that we could think of to provide the services that residents are accustomed to,” said Mayor Mitch Colvin. “We sent the budget back over and over again to find other ways to do it and to be conscious of the fact that people are recovering financially and economically, but still want service and want to feel protected.”

The FY 2025 budget represents a 3.01% increase over the previous fiscal year and includes critical investments aimed at enhancing community services, ensuring fiscal sustainability, and addressing key priorities identified by both the City Council and residents.

"Working through the budget process this year has been a testament to our commitment to the residents and employees of Fayetteville,” said City Manager Doug Hewett. “I'm proud of the collaborative efforts of our City Council and staff to ensure that we provide the best possible outcomes. Together, we have crafted a budget that not only addresses our immediate needs but also sets a strong foundation for future growth and prosperity.”

These allocations demonstrate the City's commitment to enhancing public safety and community well-being through targeted investments.

Ad Valorem Tax Rate Increase: 100% of the $0.04 ad valorem increase is dedicated to public safety personnel, ensuring competitive compensation for police, fire, and emergency communications employees. The $0.04 ad valorem tax rate increase is expected to generate approximately $6.176 million with each $0.01 increase generating approximately $1.544 million. The new ad valorem tax rate will be $0.5795 per $100 of property valuation for City residents. This funding is crucial to ensure the City of Fayetteville can recruit and retain qualified public safety personnel, maintaining high standards of safety and security for the community.

Allocations to support the Office of Community Safety: $2.5 million in funding is allocated to maintain current Office of Community Safety related activities with $2.3 million in additional funding for the OCS. The new Office will focus on four identified pillars: mental health response and diversion, violence prevention and intervention, homeless risk reduction, and youth opportunities.

Municipal Service District Tax Rate Increase: The tax rate increase for the Municipal Service District is necessary to enhance quality of life and support growth in the downtown area. The proposed increase from $0.10 to $0.17 will generate just over $105,000 to maintain services such as enhanced security, street maintenance, beautification projects, community events, and Downtown Hospitality Officers.

Employee Compensation: An investment of $4.6 million will provide all non-step employees with a 4% salary increase along with an additional 1% contribution to their 401(k) plan, bringing total contributions up to 3%. This is part of a multiyear recruitment and retention strategy aiming for a total contribution rate of 5%, making it competitive with other employers in North Carolina.

Infrastructure Improvements: The budget includes significant investments in infrastructure such as a $1 monthly increase in stormwater fees supporting stormwater management along with ongoing maintenance across Fayetteville's streets parks.

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