Budget time is just around the corner in Fayetteville. The proposed general fund budget for fiscal year 2010 beginning Aug. 1 totals $10,056,727, a 2.67 percent decrease from last year’s budget of $10.325 million.

Finance Director Lynn Robinson in a June 3 letter said the budget includes no proposed increases in tax rates, permit fees, license fees, water and sewer rates or any user fees. She said finance staff is recommending that the current 2.988 millage rate be maintained.

Robinson said the budget proposal includes no new personnel and continues the hiring freeze that went into effect in January 2008. Vacant positions through July 1, 2009 have been removed from the budget, she said. The hiring freeze is recommended to continue until it is absolutely confirmed that revenues will be the projected budget, Robinson said.

Also in the personnel area, the budget contains no increase for employee compensation and benefits. The policy covering cash payment for annual leave and the safety incentive program have been suspended for FY 2010.

The city will see an increase in employee health insurance that is projected to total 9.28 percent, or $128,563. Robinson said city staff are looking at a number of alternatives to offset the increase.

Robinson said all funds except the solid waste fund have decreased over fiscal year 2009. The total percentage of difference between fiscal year 2009 and fiscal year 2010 for all funds is a decrease of 13.24 percent. This is a direct impact of the economy, she said. The revenues in all funds have continued to decline.

Robinson said the revenues that are being impacted the most are sales taxes and building-related revenues. Of the city’s main two funds, the general fund has decreased by 2.67 percent and water and sewer fund has decreased by 10.89 percent.

In addition to the downturn of the economy, a major portion of the decrease in the water and sewer fund is the completion of the wastewater treat plant expansion and the Pye Lake improvement project, Robinson said.

The board will adopt the FY 2010 in July.

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