Fayetteville City Council Work Session - April 7, 2025

The Fayetteville City Council held a work session on Monday, April 7, 2025, starting at 2:00 PM and lasting approximately 3.5 hours. The meeting covered eight major agenda items including stormwater infrastructure, transit equity analysis, housing programs, and hazard mitigation. The council voted on several items and directed staff to return with further analysis on multiple topics.

Consent Calendar

• The council approved the agenda and entered a closed session for economic development purposes (motion carried unanimously).

Discussion Items

6.01 College Lake Dam and Carvers Creek Watershed Solutions

Staff presented options for the city-owned College Lake Dam, which is in disrepair and not meeting state standards. Options included no action, removal with downstream mitigation, or redesigning the dam. The proposed redesign (cost $15–20 million) was recommended as the most cost-effective, with mostly green metrics on the alternatives matrix. Council member Hondros noted that tree growth on the dam embankment is a structural concern, and Mayor Pro Tem suggested that private dam owners might consider transferring ownership to the city. The council also reviewed 18 proposed solutions for the Carvers Creek watershed totaling $54 million, which would address 772 disconnected structures and flooding issues.

6.02 Stormwater Impervious Area Analysis & Tiered Rate Study

Consultant Molly Brown presented findings on the city's stormwater utility fee structure. Fayetteville is the only Phase I community in North Carolina without a tiered residential rate. Three tiered options were presented: Option 1 (67% stay at $7/month, $1M additional revenue), Option 2 (26% see a decrease to $5.25, $500K additional revenue), and Option 3 (77% stay at $7, 22% go to $14, 1% to $21, $1.28M additional revenue). The council discussed impacts on commercial properties, fee credits for on-site stormwater management, and potential use of revenue bonds to accelerate capital projects. Councilman Benevente expressed interest in applying progressive fee structures to other city fees.

6.03 Hazard Mitigation Grant Program

Staff presented a FEMA-funded opportunity for structure elevation or buyout of repetitive loss properties. There are 44 repetitive loss structures in Fayetteville (41 residential, 3 non-residential). The state pays the local match, and funding is allocation-based with ~$1.5 billion available. The program is voluntary for property owners. The council approved pursuing the grant.

6.04 FAST Title VI Fare/Service Equity Analysis

Transit Director Tiffany Neal and consultants presented results of an onboard survey (577 responses, 37% above target). Key findings: 56% of fixed-route riders use FAST daily; 79% would use a reloadable fare card; 61% of respondents have household income under $30,000. The current fare recovery goal is 20%, but FY24 recovery was only 7.5% (6.15% from advertising). Proposed changes include a 20% fare increase (e.g., one-way from $1.25 to $1.50), restructuring the 5-day pass to a 7-day pass, introducing fare capping, and modifying five low-ridership routes to improve frequency. The council voted to approve staff recommendations except the fare increase, directing staff to return in six months to assess ridership impact. A second motion authorized a feasibility study for capital expansion and additional shelters.

6.05 HUD Consolidated Plan, Annual Action Plan, and Citizen Participation Plan

Staff presented the 2025–2029 consolidated plan covering CDBG, HOME, ESG, and HOPWA funding. Total projected resources are $4.7 million. Priority needs include affordable housing, supportive services, and home repairs. Nonprofit funding recommendations were made, with some first-time applicants capped at $10,000. Three Low-Income Housing Tax Credit (LIHTC) applications were presented for conditional letters. Mayor Colvin suggested using Tax Increment Financing (TIF) districts around LIHTC projects to leverage additional development. The council approved the plan, with final adoption scheduled for April 28.

6.06 Homebuying HERO Program & Mayor Colvin's Down Payment Assistance Proposal

Staff proposed revisions to the Homebuying HERO program: adding a one-year employment requirement for public service heroes, a performance requirement, removing the guaranteed $30,000 for city employees (making it “up to $30,000”), and allowing retirees to qualify as public service heroes. Mayor Colvin requested expansion to include employees of state universities, community colleges, and correctional departments; waiving the one-year requirement for all city employees; and removing the three-year prior homeownership restriction. Councilwoman Green moved to reject staff recommendations, arguing existing restrictions are barriers. The council voted 5-1 to direct staff to return by the May work session with revised recommendations incorporating council input.

6.07 Carnival Permit

Mayor Colvin requested staff research regulations requiring security plans for carnivals on private property after an incident at a carnival with insufficient security. The council voted to have staff develop a registration process.

Key Outcomes

• College Lake Dam: Unanimous vote to approve redesign and program into CIP, pursue grant funding.
• Carvers Creek Watershed: Unanimous vote to approve 18 solutions ($54M) and program into CIP.
• Stormwater Tiered Rate: Motion passed to use consensus toward a tiered structure, bring decision to budget work session with additional analysis on debt scenarios and fee credits.
• Hazard Mitigation Grant: Unanimous vote to pursue HMGP funding for repetitive loss properties.
• FAST Title VI: Two votes: (1) Approved staff recommendations except fare increase, with six-month review (unanimous); (2) Authorized feasibility study for capital expansion and shelter analysis (passed).
• HUD Consolidated Plan: Motion to approve passed, with final adoption April 28.
• Homebuying HERO Program: Motion to reject staff recommendations and direct staff to bring back revised recommendations by May work session passed 5-1.
• Carnival Permit: Motion to research regulations passed unanimously.

The meeting adjourned after staff introduced new CFO Tiffany Murray.