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October 28, 2005

Reason #1,238 We Moved

We saw this coming.

The Fayetteville City Council on Thursday approved a 2 mill increase in property taxes for the year on a 5-2 vote.

The council decided to levy the millage in order to help balance the city budget for 2006, over objections of some residents and some council members worried about impacting fixed-income residents and controlling city spending.

The local tv news this week has been reminding everyone that the council could've passed up to a 5 mil increase....as if residents should be grateful it was only 2. And the increase isn't going to really balance the budget.

The 2-mill increase is projected to raise about $1.78 million next year, when the city is projected to have a $2.2 million deficit, said Steve Davis, city finance and internal services director.

Davis said a budget within $500,000 of balanced is considered even because of fluctuations that occur during the year.

Ummm, yeah whatever. The city's spending money like it's going out of style, and you think 'fluctuations' are going to take care of the remaining shortfall? Not bloody likely.

And there's even more increases coming down the road. (Registration req'd)

The council has approved a resolution to support the Fayetteville Public Library in pursing its own property tax increase of 2.5 mills, which would occur next year. The library would need continued city funding until after the first year it could collect the tax, which would be 2007.

The council is also expected to resume discussion of the proposed $143 million Transportation Improvement Program next year, which is proposed to be funded with a 1 cent sales tax, which would require raising Fayetteville’s sales tax back to 2 percent.

The problem, according to some spokesman on the local news last night, is that tax revenues are down. Gee, how does that happen in a decidedly business-unfriendly city?

I wonder.

Posted by Rita at October 28, 2005 07:44 AM

Comments

They're just determined to blow up the whole town, aren't they? The next round of elections might be rather interesting.

Posted by: Keith at October 28, 2005 04:05 PM

I couldn't believe the mayor got re-elected in the last election. But then he's spending tons of money on things that are popular with the hippy crowd, like bike paths & landscaping. Meanwhile the city's infrastructure is overwhelmed and crumbling.

But hey! They won some national city beautification thing this year.

Posted by: Rita [TypeKey Profile Page] at October 29, 2005 03:00 AM