The Fayetteville City Council at the July 16 meeting will hear the second reading and is expected to vote on the new FY 2010 General Fund budget that will take effect August 1. The $10.057 million budget represents a 2.67 percent decrease over last year’s budget of $10.325 million.

The budget includes no proposed increases in tax rates, permit fees, license fees, water and sewer rates or any user fees, according to city Finance Director Lynn Robinson.

City finance staff are recommending that the current 2.988 millage rate be maintained.

The new budget has no new personnel and continues the hiring freeze that went into effect in January 2008. Vacant positions through July 1 were removed from the budget, Robinson said earlier. She is also recommending that the hiring freeze be continued.

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

Robinson said all funds, with the exception of 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.

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