FAYETTEVILLE — Aldermen discussed ways of cutting about $400,000 from the sales tax capital improvement fund Tuesday to make up for budget shortfalls projected in 2011.
Fayetteville Finance Director Paul Becker said the City Council has weighed several options to make up for the anticipated $1.45 million shortfall, including the use of reserve funds, an increase in property taxes and a reduction in city services.
Fayetteville Mayor Lioneld Jordan has recommended using reserve funds, while leaving property taxes the same.
BY THE NUMBERS
Sales Tax Capital Improvement Fund Capital Budget For 2011
Project Category Amount
Transportation Improvements: $2,314,300
Trail Improvements: $878,000
Street Improvements: $700,000
Bridge and Drainage Improvements: $350,000
Information Technology Improvements: $302,500
Other Capital Improvements: $495,000
Library Material Purchases and Improvements: $358,000
Parks and Recreation Improvements: $174,500
Police Safety Improvements: $366,000
Fire Safety Improvements: $445,000
Audit Expense: $6,700
Total: $6,390,000
Source: Staff Report
The city's available general fund reserve is around $1.4 million. City government has $5.7 million within the general fund that's set aside by City Council policy as a form of emergency fund. That's the amount that could cover city expenses for about 60 days in the event of an emergency. The city also has a $2 million catastrophe fund.
Ward 2 Alderman Kyle Cook has proposed a 0.3 mill increase in property taxes, which would generate about $360,000.
Fayetteville property owners pay a 1.3 mill tax levy each year to the city's general fund, which pays for general city operations such as fire and police.
Cook said he hopes to make up for the rest of the budget gap through a combined approach, which could include the use of reserve funds and cutting money from the sales tax capital improvement fund.
During Tuesday's budget committee meeting, aldermen weighed the significance of projects budgeted for 2011.
"When we talk about capital transfer, it's a matter of going through and seeing if there are things that can wait," said Don Marr, Fayetteville chief of staff.
Improvements in transportation, trails, streets, bridge and drainage, parks and recreation, fire safety, police safety, library material purchases and information technology were among the areas examined in the capital budget. Other capital improvement projects under review include telecommunication systems upgrades, parking lot rehabilitation, building improvements and Public, Educational, and Government Access Television Center equipment.
"When you're mayor you look at this stuff and it's difficult," Jordan said. "That's why I wanted all of you to look at the same list I look at to decide what we can and can't cut. If you put off major projects, it could cost you more down the road. Someone, sometime will have to pay the price."
Aldermen considered the option of deferring outside engineering costs budgeted for street improvements on the north end of town.
"Garland, 265, Cato Springs and 15th Street are about to go under construction," Marr said. "When those things get going, we've seen overruns by the state come in. We don't want every solitary road in the city under construction at the same time."
Ward 3 Alderman Bobby Ferrell suggested cutting money budgeted for trail improvements and deferring the cost of building a new fire training tower, which is budgeted at about $400,000.
Jordan said he's hesitant to cut capital improvements that could save lives.
Ward 2 Alderman Matthew Petty suggested funding a portion of the fire tower and planning two additional furlough days to save about $700,000.
"I know no one wants to talk about furloughs, but it would make up close to half the shortfall," he said.
Marr asked aldermen to continue examining the capital improvement fund budgeted for 2011 in hopes that they develop a consensus before the next budget meeting, which hasn't been announced.