The Fayetteville City Council is expected to approve its fiscal year 2011 budget Thursday--a budget that will require a slight tax increase, even though the total expenditures are less than last year.
The tentative general fund budget, presented at last month's city council meeting, is $9,712,147, 4.06 percent less than last year's $10,123,193.
The decline in spending was prompted by a drop in sales tax revenues, building-related fees and a decline in the tax digest. Local option sales tax revenues for calendar year 2009 were down nearly 10 percent, Fayetteville Finance Director Lynn Robinson said.
She noted that sales tax revenues seem to be improving this year. The property tax digest (the value of all taxable property in the city) dropped by .78 percent fiscal year 2010, but is expected to go down by 8.89 percent for fiscal year 2011.
Combined, Fayetteville's general fund, special revenue funds, enterprise funds and capital projects funds total $22,724,431 for 2011.
The city council will not set the millage rate until after the county assessors release the tax digest in August, but as it now stands, Mayor Ken Steele said last month, city property taxes will go up to 3.280, a .29 mill increase from 2.988 mills.
Also at Thursday's meeting the council is expected to adopt ordinances that they hope will result in a more vibrant downtown area by exempting developers of historic properties around the square from paying impact fees and sewer proportionate share fees.
The designated properties are along Stonewall Avenue and Glynn Street and are being designated for restaurants.
Also on the agenda for Thursday's meeting is the final hearing on an ordinance that would limit pawn shops to areas zoned M-1 (light industrial) or M-2 (heavy industrial).
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