Fayetteville council adopts FY27 budget, approves school budgets, pay raise and permits

The Fayetteville City Council on June 9 adopted the city’s FY27 annual budget and approved a slate of school budgets, audits, grant applications and event permits after routine presentations and roll-call votes.

The council approved Ordinance 2026-11 adopting the FY27 budget and kept the city’s tax rate unchanged from the prior year. City Administrator Kevin Owens told the council the budget required a post-publication adjustment after insurance premiums came in higher than estimated: an increase of $51,371.82 that lowered projected revenue in excess of expenditures to $147,966.37. The motion to adopt the budget passed on a roll call vote.

Why it matters: Passing the annual budget authorizes city spending and sets the fiscal framework for municipal services, school funding and events in the coming year. Council also approved school financial items and several one-time grants and event permits that will affect programming and operations this summer.

Among the other actions, the council approved the Fayetteville City School FY27 cafeteria, capital and general-purpose budgets and accepted both the school system’s internal annual audit and the Board of Education’s annual audit for the fiscal year ending June 30, 2025. Council also approved School Budget Amendment No. 4 totaling $169,787.82 and a grant amendment for the school dome project that reflected an increase in FEMA-related costs. A council member disclosed employment with the Fayetteville City School System before the vote; the disclosure will be recorded in the minutes per Section 1-603 of the Fayetteville Municipal Code.

Council approved a 2% across-the-board salary adjustment to the city pay scale, noting the increase was part of the FY27 budget process; one roll-call entry recorded an abstention. The council also authorized application for a Firehouse Subs Public Safety Foundation grant (Resolution R26-15) to fund lifesaving equipment and public fire-extinguisher training, and approved the renewal of a First Commerce Bank certificate of deposit at 3.5% for 12 months.

The meeting included several event and permit approvals: the Chamber of Commerce’s 250th celebration permit for July 4 at Stonebridge Park and the Parks & Recreation Independence Day celebration at Don Davidson Park on June 27 with a concert and fireworks. Council called public hearings to be held prior to the July meeting on updates to the 2024 International Codes, an updated permit-fee schedule and a C1 downtown zoning district update.

The library and schools delivered informational reports before the votes. Library Director Megan outlined the summer reading program and an upcoming construction-themed “touch-a-truck” kickoff; Director of City Schools Eric Jones highlighted the Class of 2026’s academic and extracurricular accomplishments, noting approximately 80 graduates, 10 students who completed middle-college associate degrees and roughly $4.3 million in scholarship offers for the senior class.

Votes at a glance: Ordinance 2026-11 (FY27 budget and tax rate) — approved; Ordinance 2026-10 (budget amendment #13) — approved; School FY27 cafeteria/capital/general budget — approved; School Budget Amendment No. 4 ($169,787.82) — approved; School internal and board audits — accepted; Resolution R26-15 (Firehouse Subs grant application) — approved; Renewal of First Commerce Bank CD at 3.5% — approved; Adoption of employee drug and alcohol testing policy (option two) — approved; 2% pay-scale increase — approved (one abstention noted); multiple event permits (250th celebration, Independence Day) — approved; public hearings scheduled for 2024 code updates, permit fee schedule and C1 zoning — called.

Quotes and community note: Amanda Parks, who spoke at the school-budget public hearing, identified herself as a parent of Fayetteville High School graduates and said, “our school system means a lot to this town,” urging continued community support for teachers and students. Eric Jones, director of city schools, summarized senior accomplishments and praised the graduates: “I’m very proud of each and every one of them.” Library Director Megan highlighted summer programming for all ages and the library’s community partnerships.

What’s next: The council scheduled several public hearings ahead of the July meeting and will move forward with implementing the adopted FY27 budget and the approved items; minutes will record required disclosures and vote tallies.