Fayetteville City Council Meeting - May 5, 2026
Fayetteville City Council Meeting - May 5, 2026
The Fayetteville City Council met on May 5, 2026, to discuss a financial report, a water and sewer rate study, property purchases, easement vacations, and two rezoning requests. The council approved a water and sewer rate increase and impact fee update, purchased a flood-prone property, and rezoned property on North Garland Avenue while denying a rezoning on West Palmer Place.
Consent Calendar
- The council unanimously approved the consent agenda as presented.
Public Comments & Testimony
- Water and sewer rate study (B1): Aaron Worth, president of the Northwest Arkansas Home Builders Association, expressed support for paying fair share but opposed paying for downstream infrastructure twice. Mary McGettrick, a developer, supported the rate increases but noted developers have been subsidizing municipal line upgrades and urged consideration of buyback fees and cost share agreements. Kat Anderson echoed similar concerns. Aaron Caldwell, a resident, supported the increase but suggested a geographic fee structure to differentiate infill from greenfield development.
- Rezoning 1660 West Palmer Place (D5): Multiple residents (Tom Pierce, Alan Baker, Karen Pierce, Carol Lester, Beth Lewis) spoke against the rezoning, citing narrow streets (18-19 feet wide), drainage issues, and safety concerns for emergency vehicles.
- Rezoning 1705 North Garland Avenue (D6): Donald Bennett supported the rezoning, arguing it aligns with city plans and allows trail-oriented development. Nico Fallett opposed, citing traffic and drainage concerns and suggesting a planned zoning district. Jessica Llewellyn expressed cautious support but wanted more commitments in the bill of assurance. Drew Jones opposed, citing scale and drainage issues.
- Other items: No public comments on D1, D2, D3, or D4.
Discussion Items
- Sales Tax and Financial Report: Chief Financial Officer Stephen Dotson reported February sales tax collections of $272.9 million, up 7.3% year-over-year. The combined sales tax collection increased 6.02% ($269,000) compared to February 2025. The monthly financial report for March showed the general fund up 5.1% ($874,000) compared to budget, while the street fund was down 3% and parking fund down 4%. The water and sewer fund was up 5% ($676,000) and airport fuel sales up 19% ($130,000) with flight operations up 15.6%.
- Water and Sewer Rate and Impact Fee Study (B1): Deputy CFO Jennifer Walker presented a two-phase rate adjustment: a 14% increase effective July 1, 2026, followed by 16% in 2027 and 2028, then stabilizing at 3% annually from 2029. Nearly one-third of low-use customers would see no change, and two-thirds would see up to 6% increase. Impact fees for a single-family home would increase to $5,670 (from $0 currently, last updated in 2009). The proposed rates keep Fayetteville the lowest in the region. Council discussed the fairness of impact fees and whether infill development should pay less. An amendment was passed to clarify that projects with building permits prior to the effective date pay the current impact fee. The ordinance passed on third reading.
- Sewer Connection for 2825 North Humunt Road (D1): A resolution to allow sewer extension outside city limits for a failing septic system. The property is surrounded on three sides by Fayetteville city limits, and annexation is required. The homeowner pays for the tap; no impact fee is charged for converting from septic. The council approved the resolution.
- Purchase of 2400 West Valley Drive (D2): A resolution to purchase a flood-prone property for $225,000 plus $7,500 contingency, using stormwater bond funds. The property is in the floodway, and the city will remove the structure to improve drainage. Council members expressed concern about other flood-affected properties, but staff assured that elevation and buyout programs are ongoing. The resolution passed.
- Easement Vacations (D3 and D4): Two ordinances to vacate small portions of utility easement and right-of-way were approved unanimously.
- Rezoning 1660 West Palmer Place (D5): A request to rezone from RSF-4 to RSF-8 to allow up to three houses and ADUs on a 0.38-acre lot. Council members raised concerns about narrow streets (18-19 feet), drainage issues, and safety. The rezoning failed 7-1.
- Rezoning 1705 North Garland Avenue (D6): A request to rezone from RSF-4 to RIU (Residential Intermediate Urban) to allow 27-30 units in a trail-oriented development. The applicant offered a bill of assurance limiting structures to 30, two stories, tree canopy of 20%, traffic study, and privacy fencing. After debate, the council approved the rezoning 7-1, overturning the planning commission's denial.
- Resolution on Crisis Response Systems (D7): Tabled indefinitely.
Key Outcomes
- Water and sewer rate and impact fee study: Ordinance passed (8-0) with amendments to incorporate a bill of assurance for impact fee transition.
- Sewer connection for 2825 North Humunt Road: Resolution passed (8-0).
- Purchase of 2400 West Valley Drive: Resolution passed (8-0).
- Easement vacation 600 West Meadow Street: Ordinance passed (8-0).
- Easement vacation 1834 West Kwood Lane: Ordinance passed (8-0).
- Rezoning 1660 West Palmer Place: Failed (7-1).
- Rezoning 1705 North Garland Avenue: Passed (7-1) with amendment to incorporate bill of assurance.
- Sewer damage claim 516 North Fallon Avenue: Tabled to the next meeting.
- Resolution on crisis response systems: Tabled indefinitely.
Meeting Transcript
Okay, I would now like to call to order the Tuesday, May 5th meeting of the Fayetteville City Council. Welcome everyone. Clerk Paxton, will you please start by calling our roll? Mr. Wiedaker? Here. Mr. Berna? Here. Ms. Bench. Ms. Turk? Here. Minister Jones. Present. Mr. Stafford? Here. Dr. Jones. Here. Ms. Moore? Here. Mayor Ron. Here. Please join me as we pledge allegiance. Okay. The very first thing we have is a sales tax and monthly financial report from uh Stephen Dotson, our chief financial officer. Stephen, please go ahead. Thank you, Mayor. This is the February sales tax report. In February, we saw taxable sales in the city totaling approximately 272.9 million. And that was an increase of around 7.3% or 18.6 million compared to February of 2025. Retail trade was up 7% year over year, representing an increase of $8.3 million. Accommodation and food services were up 11% or $4.1 million. And wholesale trade was up $26% or $4.7 million. We noted that building materials and supplies increased nearly $15%, or nearly $50 or $5.5 million. And bookstores and news dealers increased $34% or nearly $1.3 million compared to 2025. So we had a pretty good uh pretty good month for taxable sales in the city. In total, we noted a 7.3 increase in taxable sales compared to 2025. And then looking at the actual tax collection results in February of 2026 compared to 25. The City 1 penny was up 7.27% or roughly $179,000 compared to last year. The county portion to the city was up 4.47% or roughly 89,000, resulting in a total combined sales tax collection increase of 6.02%, or roughly 269,000 compared to February of 2025. And then looking at the tax revenues compared to what we actually had budgeted in February of 2026, the City 1 penny was up 4.15% compared to budget. The county portion was up 1.42% compared to budget. For a combined total for the month of February up 2.93 compared to budget, or approximately 135,000. And cumulatively, that's going to put the city on a year-to-date basis up approximately half a percent or 73,000 compared to budget. And so basically we we kind of made up for some of the the earlier months of the year, which were a little bit weaker uh during this time period.
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