Budget Work Session - May 14 2026

The City of Fayetteville, NC held a budget work session on May 14, 2026, focused on reviewing the recommended budget for fiscal year 2027. Key procurement-related discussions included the proposed 1 cent property tax increase to maintain current city services and staffing, with an additional 2 cent increase proposed for capital needs. The budget allocates approximately $120 million for public safety, including police and fire departments, and includes a 4% pay increase for employees and a 1% increase in the city's 401k contribution. The council discussed funding for transit operations, sidewalk investments averaging $2.5 million annually, and the solid waste fee increase. A significant portion of the meeting was dedicated to the housing opportunity bond, with staff requesting council approval to allocate $422,125 from the $12 million bond to close an infrastructure funding gap for a single-family housing project by Kingdom CDC. The council moved to approve this allocation and tabled other housing bond items for further discussion. The meeting also addressed vacancy rates, fund balance policies, and the need for transparency in budget assumptions. No final votes on tax rate increases were taken, but motions related to housing bond fund allocation were passed.