Fayetteville isn’t proposing any tax or fee increase this year

Based on guidance from elected officials and city staff, Fayetteville City Manager Doug Hewett has proposed increasing the city’s budget for the upcoming year — but not at a cost to residents.  

The proposed budget was the last item on the agenda for the Fayetteville City Council meeting on May 23. After the council had been discussing city business for more than three hours, Hewett asked for everyone’s attention.

“Too much of what you do every month and too much of what the staff does every day is dependent on this one document,” Hewett said.

The most important point: no tax or fee increases. That means that residents and business owners won’t have to pay more for water, sewer or property during the upcoming fiscal year from July 2022 to June 2023.

However, the overall budget for the city is increasing by 3.3% to more than $248 million.

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The proposed budget allocates more money for stormwater, solid waste, transit and law enforcement officer’s special separation allowance (LEOSSA), according to city documents.

Hewett explained that the state increased the contributions the city must make financially to law enforcement officers, making the LEOSSA fund go from $1.8 million last year to $3.1 million for the upcoming fiscal year.

To pay for this budget, the city anticipates 29% of its revenue from ad valorem taxes like property taxes, 24% from sales taxes, 16% from intergovernmental affairs, 10% from stormwater and solid waste fees, 12% from other fees, 4% from the fund balance (which serves as the city's savings account) and 5% from an undesignated “other” fund, according to city documents.

The city also plans to reserve 12% of its general fund within its savings account for emergencies, according to city documents.

In addition, this budget proposes multiple projects, including:

• $450,000 to repave the perimeter road and replace the fencing at the airport
• $450,000 for stormwater repairs and project management
• $2.7 million for replacement of fire vehicles and equipment
• $4.5 million for stormwater watershed studies
• $4.7 million for pavement preservation
• $6.6 million for a merit pay increase of 4% for employees
• $7.4 million for vehicle and equipment replacements

Hewett said that this budget follows the city’s primary goals of a safe and secure community; a responsive city government supporting a diverse and viable economy; an investment in today and tomorrow; a desirable place to live, work and recreate; a financially sound city providing exemplary city services; and collaborative resident and business engagement.

The City Council still can change the budget. It will have several budget work sessions to look closer at the funds of different departments within city government. It can ask for changes to the budget then.  

After any potential changes, City Council will host a public hearing on the proposed budget on June 13 and potentially adopt it later that night.

Reporter Ivey Schofield can be reached at ischofield@gannett.com.