Capital Projects Remain On Course

— Trail and sidewalk construction will not likely be halted midyear in light of Fayetteville’s budget problems. The City Council took a mostly lukewarm position on a suggestion to transfer money from the city’s capital project fund to the general fund.

“We’re in an economic downturn,” Adella Gray, an alderwoman from Ward 1, reminded the council, as she offered the option of moving money from projects in areas such as trails, information technology or parks to the general fund, rather than having city workers take a day off without pay.

“I think our citizens will understand,” Gray said of her idea to suspend some projects to keep workers on the job.

The council was hesitant to halt projects — particularly those identified as technology improvements — that could bring efficiencies and cost savings down the road.

“I’m very pleased with what is being done right now,” said Shirley Lucas, alderwoman from Ward 4, speaking during Tuesday’s agenda session.

“I like where we’re at right now,” agreed Matthew Petty, alderman from Ward 2.

However, the council did identify an $80,000 concrete pad construction project for the Fayetteville Fire Department that will not be needed. The pad would have been used to park a mobile burn lab. Since the city was not awarded the grant needed to purchase the lab, it will not be purchased, said Don Marr, Fayetteville chief of staff.

“I don’t think the mayor will build a pad if we don’t have something to put on it,” Lucas said. “I like what we’re doing right now, and I’d like to stay with what we’re doing right now.”

Projects such as the concrete pad or the $205,000 fiber optic connection upgrade for city buildings are capital projects determined and prioritized by the council, said Paul Becker, finance director. They are not locked in by voter referendums like the Transportation Bond Program.

When the council approved its 2010 budget, it placed emphasis on paying for technology projects that would save money in the long run. Administration officials stressed if the council is considering tossing aside some of these projects in light of budget problems, that wish needs to be communicated as soon as possible.

“What’s your order,” Marr asked the council.

For now, the council will maintain its course.

“I’m not too keen on cutting fund spending that has a substantial return,” said Sarah Lewis, alderwoman from Ward 4, explaining her interest in maintaining technology upgrades that can save money through reduced operational costs.

Jordan had a furlough day planned for city workers during the July 4 weekend. He rescinded that day-off-without-pay last week when Fayetteville received a better than expected sales tax report for collection in March. Even though tax collection was slightly down compared with March 2009, the loss was not as severe as expected. The city’s projected end-of-year shortfall moved from about $1 million to $850,000, Jordan said.

“It’s not great news, but it’s better than it was,” Becker said. “I hope that we’ve reached the bottom.”

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