Voters in the City of Fayetteville during the November 2022 election approved the issuance of up to $97 million in general obligation (GO) bonds to support projects in public safety ($60 million), public infrastructure ($25 million) and housing opportunity ($12 million).
Transformative investments in the City’s infrastructure and operations are focused on moving Fayetteville forward by improving the quality of life for residents by addressing needs related to safety and security.
One way for the City to make these key improvements for Fayetteville’s future is with general obligation municipal bonds. The three referendums are the least expensive way to fund projects, with the lowest interest rate, and could potentially save the City and taxpayers higher financing costs associated with borrowing money to complete the identified priority projects. The City estimates a savings of roughly $2.5 million by funding the projects through a GO bond compared to installment financing options.
All of these investments could come at a cost to taxpayers of an estimated 4 cents on property tax rates. A homeowner with an average home value of $200,000 would increase their property tax by approximately $80 a year or $6.67 per month. Should voters decide to pass the referendums, new property tax rates would be adopted in 2023 to take effect during the fiscal year 2024.
Public Safety ($60 million)
A maximum of $60 million will be used to support key public safety projects to provide enhanced safety and emergency services to Fayetteville residents. These projects could include land acquisition, relocation, and construction of new fire stations, the construction of a logistics center, renovation of existing fire stations and a police department call center.
- Improved services
- Better access to service
- Modernized facilities
- Improving response time and efficacy
- Enhanced security and safety of residents
Possible projects for consideration (total needs = $182.11 million):
- Fire Station 16 (1126 Cedar Creek Rd.) – $8.76 million
- Fire Station 9 (5091 Santa Fe Dr.) – reconstruction - $10.16 million
- Fire Station 2 (101 Olive Rd.) – $8.54 million
- Fire Station 7 - $4.86 million
- Fire Station 3 - $4.98 million
- Fire Station 6 – $5.08 million
- Fire Department Logistics Building – $3.52 million
- Fire Station 11 - $6.62 million
- Fire Station 20 - $9.25 million
- Fire Station 18 – $100,000
- Police Department 911 Communications Center - $33.89 million
- PD Training Complex – $23.06 million
- PD Special Vehicle Storage - $3.82 million
- PD Cross Creek District - $11.92 million
- PD Central District - $16.31 million
- PD Headquarters Renovation – $31.33 million
Public Infrastructure ($25 million)
A maximum of $25 million will be used to support critical investments in public infrastructure directly affecting safety, security and livability. These projects could include sidewalk improvements, street repair, intersection improvements and bike paths and lanes, among others.
- Street improvements
- Recreation
- Improves transportation
- Improves walkability
- Enhanced safety
- Pedestrian-friendly City Street and walkways
Possible projects:
- Sidewalks (14.5 miles) - $7.3 million
- Intersection Improvements (5 intersections) - $800,000
- Bike Plan (4 buffered bike lanes) - $450,000
- Street Repaving/Pavement Preservation (63-109 miles) – $14.7 million
Housing Opportunity ($12 million)
A maximum of $12 million will be used to support housing opportunity initiatives making Fayetteville a desirable place to live for all residents. These projects could include a housing trust fund, homeownership programs, new housing initiatives and innovative solutions to meet the critical housing needs of the community.
Addressing housing opportunity in Fayetteville will offer security to families, encourage economic development and create sustainable solutions.
Why use bond financing for these projects?
Citizens voted in favor of the bond financing question on the November 8, 2022, ballot allowing the city to have the authority to issue up to $97 million in general obligation bonds. Up to $60 million for Public Safety, up to $25 million for public infrastructure and up to $12 million for Housing Affordability.
How much would the city issue in bonds?
The city will have the authority to issue up to $97 million in general obligation bonds. Up to $60 million for Public Safety, up to $25 million for public infrastructure and up to $12 million for Housing Affordability.
How will taxes be applied?
Taxes are applied to all assessed value, which includes both real and personal property, such as your home, vehicle or boat. It is estimated that a property tax rate increases up to 4 cents per $100 value will pay for the general obligation bond. For a home price of $100,000, the property tax increase would be approximately $3.33 per month or just $40 a year. A homeowner with an average home value of $200,000 would increase their property tax by approximately $6.67 per month or just $80 a year.
