F’ville set to adopt budget

Tue, 07/14/2009 - 4:01pm
By: Ben Nelms

The Fayetteville City Council at the July 16 meeting will hear the second reading and will likely adopt the new $10.057 FY 2010 general fund budget that will take effect Aug. 1.

The council Thursday will also hear the first reading of an amendment to the occupational tax ordinance that would decrease the fine amount for failure to pay on time.

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’s 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. Robinson is also recommending that the hiring freeze be continued.

The city will see a 9.28 percent increase in employee health insurance costs 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, has 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.

Also at the meeting, the council will hear the first reading of an amendment to a section of the occupational tax ordinance dealing with fines for failure to pay in a timely manner.

Occupational taxes are due Jan. 1 each year and are considered delinquent if not paid by April 1. The fine for non-payment is up to $1,000. Complying with recent changes in state law, the city is considering decreasing the fine amount to $500.

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