City maintains strong financial position

Published on April 06, 2026

FAYETTEVILLE, N.C. - The City of Fayetteville continues to demonstrate a strong and stable financial position, allowing investment in services and infrastructure improvements while keeping the property tax at its lowest rate in 30 years.

This financial strength was recently reaffirmed by independent rating agencies, with Moody’s assigning a rating of Aa1 and S&P Global Ratings assigning a rating of AA+ for the City’s upcoming $40 million general obligation bond issuance. These are among the highest ratings possible and reflect the City’s long-standing commitment to sound financial management.

“Being recognized with top ratings by Moody’s and S&P is a reflection of the teamwork and careful planning that goes into every financial decision,” City Manager Douglas Hewett stated. “It means we can continue making investments in our City without additional burden on residents.”

The City’s most recent bond sale further demonstrates this strength. In March, the City sold The $40 million general obligation bonds, part of the $97 million approved by voters in 2022, generated a premium of approximately $2.6 million, meaning investors were willing to pay more than the face value of the bonds.

The City will repay the $40 million over time, and the additional funds can be used to help cover certain project costs or expenses related to the bond sale, allowing more of the City’s resources to go directly toward community investments.

The City’s financial performance in Fiscal Year 2025 also reflects this continued strength. The general fund balance increased by $3.3 million to nearly $27 million, a 4.24% increase over the previous year. At the same time, spending remained well-managed, coming in 9.4% below budget, with total general fund revenues reaching $220.2 million.

These results are supported by the City’s five-year Capital Improvement Plan, which prioritizes strategic investments in infrastructure and community assets, and a debt capacity model that ensures responsible and sustainable borrowing.

“The ratings confirm that Fayetteville is in a strong financial position,” Mayor Mitch Colvin stated. “We’ve been intentional with our investments and focused on the priorities that matter most to residents, positioning Fayetteville not just for today, but for continued growth well into the future.”

Further reinforcing investor confidence is the recognition of the City’s financial standing by external auditors and financial advisors, who noted the strength of the City’s clean audit, financial policies and leadership.

This strong financial position allows Fayetteville to continue maintaining infrastructure, supporting public safety and investing in programs and services that enhance the quality of life for residents across the City.

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