Fayetteville council adds $500,000 to FY2026 budget for sidewalks; staff to return with funding plan

FAYETTEVILLE, N.C. — Fayetteville City Council on Thursday moved to add $500,000 in one-time funding for sidewalks to the proposed fiscal year 2026 budget and asked staff to return with specifics on how to pay for it before the council’s scheduled adoption meeting.

The council’s discussion during a June 5 budget work session centered on how to accelerate sidewalk construction identified in the city’s pedestrian plan and a separate supplemental school-focused pedestrian plan. Staff told the council the budget currently programs $1,221,696 for sidewalks in FY26 and $500,000 annually from FY27 through FY31; the council directed staff to identify sources to add the one-time $500,000 while holding the city’s fund balance near its 12% goal.

Council members said the additional money is meant to demonstrate an immediate, tangible commitment to walkability — for example, funding at least one near-term priority project from the supplemental school plan — while longer-term decisions about recurring funding or bonds are worked out. Council members repeatedly referenced the estimated total need from the pedestrian study, which staff called roughly $700 million for sidewalks across priority areas.

City staff described current sidewalk funding sources and constraints. Jeff Yates, a member of the city’s finance staff, said the FY26 sidewalk allocation was partially funded by previously approved debt and by grant awards: “The state and federal funding typically has some version of strings attached,” he said, and noted the Glenville Lake project funding comes largely through FAMPO. Staff also told the council that the 2022 public infrastructure bond package totaled $25 million (about $8 million of which was programmed for sidewalks originally) and that a portion of that bond funding has already been appropriated for ongoing projects.

City staff gave additional technical context for cost and scope. Assistant Director Reeves (public works) told the council that, depending on right-of-way issues and specifications, construction costs vary widely but “a million dollars will get you between 2 to 4 miles” of sidewalk at their assumptions; the pedestrian study identified roughly 40 miles of missing sidewalks. Staff also noted that a typical budgeting assumption used by the city had been around $500,000 annually for sidewalks in recent years, and that FY26 reflects a higher one-time allocation of about $1.2 million.

Council members voiced two recurring concerns: preserving an adequate general-fund balance for emergencies and accelerating repairs and public-safety needs across streets, parks and facilities. Several members said they wanted the council to see how an added recurring allocation (for example, a half-cent of property-tax equivalent) would affect revenues and debt capacity before committing to a long-term change. City Manager Dr. Hewitt said staff would calculate and return with debt-service and fund-balance implications.

Other budget items discussed briefly included a $75,000 addition for speed radar signs (reported as 10 signs at roughly $7,500 each), funding for the Hub Business Center contract (two-year funding already in place), and planned studies for permitting/UDO updates and other planning efforts. Council members who support the permitting/UDO work said the studies are often required to qualify for larger state, federal, or philanthropic grants and to provide project design documents that funders request.

The motion to add $500,000 for sidewalks was seconded and the council signaled consensus to include the one-time amount in the draft; staff agreed to return the next day (by noon) with options showing where the money would come from and how the change would affect the city’s fund-balance percentage and other priorities. Final adoption of the FY26 budget remains scheduled for the council’s regular meeting next week, pending those follow-up figures.

The council also directed staff to provide a more detailed CIP/borrowing briefing later this year covering debt capacity, outstanding bond projects and options for bonding versus pay-as-you-go funding.