City leaders have approved Fayetteville’s new budget for the fiscal year that begins July 1, and while the property tax rate is dropping to its lowest level in three decades, many homeowners will still see larger bills because of this year’s countywide property revaluation.
On June 9, the Fayetteville City Council voted 9-1 to adopt a $315.2 million operating budget and a $91.8 million Capital Improvement Plan for 2026. The property tax rate is set at 44.95 cents per $100 of assessed value — down 13 cents from last year.
Despite the lower rate, overall property tax collections are expected to rise because most homes were reappraised at higher values. The adopted rate is six cents higher than the revenue-neutral level, which would have kept the city’s total tax collections flat compared with last year.
Councilman Mario Benavente cast the lone “no” vote, arguing that the city should have stayed at or below the revenue-neutral mark. Other council members said the budget was necessary to fund public safety, infrastructure, and employee pay.
Where the Money Goes
The 2026 budget prioritizes public safety, stormwater, and parks:
- $30.7 million for stormwater system improvements
- $20.6 million for police, fire, and technology upgrades
- $9.5 million for parks and recreation
- $6.2 million for neighborhood projects such as cameras, sidewalks, and other community improvements
City employees will also receive a 4% merit pay increase and an extra 1% contribution to their retirement accounts.
Fees for solid waste, stormwater, and city bus service remain unchanged.
How It Affects You
The city estimates it will collect about $104.9 million in property taxes this year. Sales tax revenue is projected at about $51.5 million, though city officials expect some declines in sales tax and motor vehicle revenue.
Fayetteville ends its annexation cost payments to Cumberland County this year, which frees up about $9.7 million. A one-year revenue sharing agreement with the county will provide another $2.5 to $3 million to help cover the transition to a new sales tax distribution method.
The city’s emergency reserves are expected to remain above policy minimums at 11.65% of the general fund.
Bottom Line
Even with the lower tax rate, most Fayetteville homeowners will see their bills rise due to higher property values. City officials say the additional revenue is needed to cover core services and long-term projects, while one dissenting council member says the city could have eased the burden on residents by keeping taxes closer to the revenue-neutral rate.