Fayetteville City Council Faces Budgetary Challenges for Fiscal Year 2025
The City of Fayetteville is facing a significant budget gap for the upcoming fiscal year 2025, which may lead to increased taxes for residents. According to recent announcements, the city council anticipates raising taxes to close a nearly .5 million budget deficit. This decision was made in an effort to primarily fund pay increases for law enforcement, the fire department, and emergency responders.
The Ad Valorem Tax Rate Increase
The ad valorem tax rate is expected to increase by $.05 to generate about million. This additional revenue will be dedicated to the pay increases for public safety personnel. Despite the tax hike, city officials assure that essential public amenities like solid waste and fire service will remain unchanged. Doug Hewett, the Fayetteville city manager, emphasized that all city services will continue in appreciably the same format as they currently are.
Impact of County’s Fiscal Changes
The budget shortfall stems from Cumberland County’s recent move away from a tax-based funding system that measured funding based on population size. Now, municipalities receive a share of county sales taxes. This shift means Fayetteville is losing some benefits from its economic growth as the area attracts more residents.
Efficiency Measures and Staffing Impact
To balance the budget, officials are exploring any inefficiencies in their offices but have ruled out cutting staffing levels. Instead, they are working towards other solutions to diversify revenue streams and grow the economy without overburdening residents with taxes. “We realize that city budgets have to grow as we demand more from our employees, who are also providing more services to our residents,” Hewett explained.
Budget Work Sessions and Public Hearings
In an effort to engage residents and receive feedback, the city has invited the public to attend a series of budget work sessions beginning October 2024. These sessions will be held at City Hall, providing an opportunity for community members to voice their opinions on how public money is allocated. A public hearing scheduled for May 28 will also offer another chance for residents to share their perspectives on the budget.
Key Budget Highlights
– Ad Valorem Tax Increase: .176 million from a $.04 ad valorem tax rate increase, focusing on public safety compensation.
– Office of Community Safety: million in total funding, including .5 million for current activities and .3 million for additional initiatives.
– Employee Compensation: A 4% salary increase and 1% contribution to the 401(k) plan for non-step employees, totaling .6 million.
– Infrastructure Improvements: A monthly increase in the stormwater fee to support street maintenance and other infrastructure projects[4].
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The city council has until June 30 to finalize the budget, with ongoing strategizing between the city and county to identify cost-cutting measures. Despite the challenges, officials emphasize their commitment to maintaining essential city services while addressing financial sustainability and community priorities.
