Fayetteville City Council July 20 unanimously adopted the city’s $9.591 million Fiscal Year 2007 general fund budget, a 4.31 percent increase over the current year.

Fayetteville is set to approve a 2.99 millage rate July 27 at 7 p.m. Though a decrease from the current 3.033 mills, the new rate represents a slight tax increase due to higher property reassessments.

Although the millage rate is decreasing, this represents an effective tax increase of 3.93 percent over the 2005 millage rate as a result of the reassessment increase in the city’s property tax digest, said Finance Director Lynn Robinson.

She said the historic intent of the mayor and council has been to “roll back” the millage rate to account for any reassessment increases to the tax digest when possible, even though property values do increase based on market conditions or improvements to homes or businesses.

The mayor and council have decreased or held the line on the millage rate each year from 1993 to 2006, from 5.98 mills in 1993 to 2.99 mills for 2006, she said. Of the 2.99 mills, 2.24 will be designated for the general fund while .75 mills will go to capital projects.

Robinson told the council July 20 the $9,591,721 proposed general fund budget represented a 4.31 percent increase over the current $9,195,527 budget.

The increase comes primarily in the form of 3.5 percent pay increases to city employees, higher health insurance costs and the addition of three full-time and one part-time city staff persons.

Personnel recommendations included the addition of one stormwater maintenance worker, one wastewater treatment plant operator, one drug task force patrol officer and one part-time maintenance manager.

Also included for 2007 are donations of $17,739 for Fayette Senior Services and $7,260 for Promise Place domestic violence center.

Reviewing the various fund categories and providing a comparison to the current budget cycle, Robinson said the water and sewer fund had decreased by 4.27 percent with the completion of stormwater drainage system infrastructure.

The Special Purpose Local Option Sales Tax (SPLOST) fund increased by 100 percent due to transportation projects included in the proposed budget.

The Downtown Development Authority budget decreased by 26.22 percent due to the 2001 bond project carrying a remaining reserve fund balance of $35,000 for the facade project and $35,000 for Depot renovation.

Other budget considerations included a 481.16 percent increase in the cemetery fund, from $5,850 in 2006 to $33,998 in 2007, due to a transfer to the capital projects fund for the cemetery improvement project.

Robinson said the Main Street tourism fund increased by 3.75 percent and the hotel/motel tax fund increased by 26.79 percent over 2006 in anticipation of a full year of business by the new hotel.

The budget was adopted on a 5-0 vote.

login to post comments