With a great sense of responsibility and pride, I present the Recommended Budget for Fiscal Year 2027. As we celebrate the 250th anniversary of the United States, I am reminded that the City of Fayetteville is truly the “Can Do City!” Our residents and employees show this spirit every day by working hard, helping others, and meeting challenges head-on. This budget is our plan for how we will use City resources. At the same time, we recognize that national and global events can affect our local community. That is why careful planning and strong leadership are more important than ever.

Our mission is clear: “The City of Fayetteville provides quality and sustainable public services for our communities to thrive and businesses to grow.” This budget focuses on that mission. It makes sure we continue to provide the services our residents count on, while also staying financially responsible and supporting City Council priorities.

Key Investments and Recommendations

• Tax Rate Adjustment: We recommend a property tax rate of $0.4795. This is still one of the lowest rates in the City’s history. The small increase of $0.01 will help us keep services strong and reliable.
• Public Safety Investment: We recommend $120 million for Public Safety, including funding for:
• $76 million for the Fayetteville Police Department, a $2.54 million increase.
• $42 million for the Fire Department, a $2.1 million increase.
• $2.18 Office of Community Safety, a $287,000 decrease.
• Mental Health Response Expansion: We recommend adding two mental health response units to the Office of Community Safety. These teams will help respond to people in crisis and meet growing community needs.
• Employee Compensation Increases: We recommend investing in our employees by:
• Funding step increases for public safety staff
• Providing a 4% pay raise
• Increasing the City’s 401(k) contribution by 1% so all employees receive the same level of support
• Solid Waste Fee: We recommend a $10 yearly increase in the Solid Waste Fee to help cover higher fuel costs. No other fee increases are proposed.

These recommendations and the discussion that follows reflect our attempt to balance opportunity with reality and today’s needs with tomorrow’s possibilities. They maintain the services that citizen’s rely on, strengthen priority areas such as public safety community safety, support the employees who deliver City services every day, and preserve flexibility for Council discussion during the budget review process.

It’s also a budget shaped by partnership. The City cannot accomplish it’s goal alone. Whether through neighborhood revitalization, public safety, economic development, affordable housing, infrastructure, or community engagement, our progress depends on strong relationships with residents, Council, employees, community partners, regional institutions, and other levels of government.

While this budget required some difficult choices, it keeps Fayetteville moving forward. It protects the services residents rely on supports the workforce that delivers those services, and set the stage for an even greater Fayetteville future.

This budget was built through teamwork, careful discussion, and thoughtful decisions. While we had to make some tough choices, our focus remains clear: provide strong services, protect the City’s finances, and support our community.

Let us move forward together—leading with purpose, investing wisely, and serving with care. Together, we are building a future our residents can trust and be proud of.

Respectfully,

Douglas J Hewett

City Manager

The General Fund is the primary operating fund of a municipal government and supports the core services residents rely on every day. It is used to account for revenues and expenditures that are not required to be reported in a separate fund. Common General Fund expenditures include public safety, street maintenance, parks and recreation, administration, planning, and other essential community services.

General Fund revenues typically come from sources such as property taxes, sales taxes, franchise fees, permits, licenses, and state-shared revenues. Because the General Fund finances a wide range of public services, it is often considered the central component of a municipality’s annual budget and a key indicator of the government’s overall financial health and priorities.