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Fayetteville sets hearings for tax increase

Hike tied to property reassessments, new buildings

By JOHN MUNFORD
jmunford@TheCitizenNews.com

Even though Fayetteville is keeping its millage rate the same, the result will be a tax increase due to the increase in property valuations and the new buildings added to this year’s tax digest.

The millage rate will remain at 3.033 mills, but that will result in a net tax increase of $224,943, according to city figures.

Because the city is not rolling back the millage rate to compensate for the increased tax digest, the city is required to have special public hearings on the budget. The first is scheduled Thursday, Aug. 5, at 8 a.m., with another public hearing slated for the council meeting that night at 7:30. A final public hearing on the tax hike will be Thursday, Aug. 12, at 6 p.m.

The 2004-05 budget totals $29.09 million, with $8.85 million for the general fund, $11.75 million for water and sewer, $6.56 million for capital projects and $1.16 million in impact fees.

The water and sewer fund is larger than normal thanks to the bond issue recently approved by council to fund expansion of the city’s sewer plant and improvements to the city’s stormwater system. The city has begun to charge individual homeowners $2.95 a month, and commercial establishments at higher rates, to recoup some of the money for the stormwater improvements.

The capital projects fund includes $3.2 million for the police station/municipal court building which will be financed, increasing the city’s annual debt service. Also in the capital projects fund is $1.63 million for pedestrian improvements on Lanier Avenue —Êbut $1.3 million of that will be paid for with grant proceeds from the Atlanta Regional Commission’s Livable Centers Initiative program.

Sales tax revenues account for 32 percent of the city’s projected general fund revenues for the coming fiscal year.

Property taxes come in at 18.5 percent of the city’s general fund revenues, with business taxes at just under 16 percent.