Fayetteville residents will see a property tax increase to raise pay for police officers and firefighters after the Fayetteville City Council last week unanimously approved the city's fiscal year 2025 budget.
The budget also includes a tax rate increase for downtown property owners and salary increases for city employees.
The City Council on June 24 adopted the budget, totaling $319.9 million, during a regular council meeting held in the council chambers at city hall. This budget represents a 2.83% increase over the previous fiscal year, according to a news release from the city.
“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," Mayor Mitch Colvin said in the release.
What's in the budget?
• The tax increase is dedicated entirely to public safety personnel, ensuring competitive compensation for police, fire and emergency communications employees, the release said. The tax rate for every $100 value increased by $0.04, bringing the new tax rate to $0.5795 per $100 of property valuation for city residents. The $0.04 tax rate increase is projected to generate about $6.176 million, with each $0.01 increase yielding approximately $1.544 million, the release said.
• The Office of Community Safety will receive $2.3 million in funding, plus an additional $2.5 million for its activities, the release said. The office will focus on providing mental health response and diversion, violence prevention and intervention, homeless risk reduction and youth opportunities.
• The Municipal Service District tax rate for downtown property owners will increase from $0.10 to $0.17. It's expected to generate more than $105,000 to maintain services including enhanced security, street maintenance, beautification projects, community events and downtown hospitality officers to support the growth of the downtown area, the release said.
• A $4.6 million investment toward employee compensation will include a 4% salary increase for all nonexempt employees and an additional 1% contribution to the 401(k) plan, totaling a 3% contribution, the release said. This investment is part of a multiyear strategy that aims to provide a 5% total contribution to enhance competitiveness with other employers, municipalities and counties in North Carolina, the release said.
• The budget includes investments in infrastructure, such as a $1 monthly stormwater fee increase to fund management and maintenance of the city's 751.6 miles of streets and 122 parks and recreation facilities, the release said.
"Working through the budget process this year has been a testament to our commitment to the residents and employees of Fayetteville,” City Manager Doug Hewett said in the release. “I'm proud of the collaborative efforts of our City Council and staff to ensure that we provide the best possible outcomes."
Reporter Lizmary Evans covers growth and development for The Fayetteville Observer. You can reach her at LEvans@gannett.com
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