The Fayetteville Public Works Commission is considering a $450.1 million annual budget for general operations in the 2025-26 fiscal year to provide water, sewer and electricity service in and around the city, a 2.4% decrease from this year.
The PWC also has proposed a $261 capital improvement projects budget for construction projects for the upcoming fiscal year, an increase of 28.7% from this year.
The four-person PWC board will have a public hearing on the proposed budget next week, and may modify or approve it afterward.
Lower electricity expenses
The proposed operating budget marks a 2.4% decline from this year’s $461 million budget, PWC Chief Financial Officer Rhonda Graham told the PWC board on May 14.
According to the budget document, the overall budget reduction stems from an $18.3 million reduction in expenses for providing electricity and a $7.4 million increase in expenses for providing water and sewer service. That’s a net decline of about $10.9 million from the 2024-25 fiscal year.
$12 million payment offsets city property taxes
The City of Fayetteville owns the PWC, although by state law the PWC operates largely as an independent government agency.
The new budget includes a payment from the PWC to the city of $12 million, a 0.8% increase from this year. The payment is described as “payment in lieu of taxes.” It represents a payment the PWC might have otherwise paid to the city in property taxes if it were a tax-paying private entity instead of an untaxed city asset.
The PWC’s payment to the city government is the equivalent of about 5.1 cents per $100 of value in the city’s property tax rate. If not for this payment, the City Council might levy higher property taxes on Fayetteville property owners — about $139 a year more on a home worth $270,000, and about $15 on a car worth $30,000.
$58.3 million more in construction costs
While the operations budget would be reduced, the capital projects budget would increase by $58.3 million. It was $202.9 million this fiscal year, and proposals call for $261.2 million in the upcoming fiscal year.
A budget document says the capital projects budget varies from year to year as PWC reevaluates needs and priorities, and as projected spending costs change.
Some items in the PWC’s capital improvements budget:
- More than $9 million to build a solar farm off Ramsey Street north of Fayetteville (although its future is in doubt because the Cumberland County commissioners on Monday rejected a rezoning request). Also $8.1 million to expand another solar farm next to the PWC’s natural gas powered plant near Eastover.
- About $17.7 million toward a years-long plan to build PFAS filtration systems at the PWC’s two drinking water treatment plants. In the end, the projects are estimated to total nearly $116 million by June 30, 2028.
- $8.6 million to run a water line to Alderman Road Elementary School and Gray’s Creek Elementary School. The water service is to replace the schools’ drinking water wells, which are contaminated with GenX PFAS chemicals.
- Tens of millions of dollars for numerous projects to maintain and expand the PWC’s water system, sewer system and electrical system infrastructure.
Tell the PWC what you think
People who would like to comment on the proposed budget may do so in person at a public hearing scheduled for 8:30 a.m. Wednesday, May 28, at the PWC’s office at 955 Old Wilmington Road in Fayetteville.
Register in advance by emailing PwcBoard@FayPWC.com (include your name and address), or in person in the PWC’s meeting room before Wednesday’s meeting starts.
Senior reporter Paul Woolverton can be reached at pwoolverton@cityviewnc.com.
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