FAYETTEVILLE -- The portion of property tax bills going to the city will likely remain the same in 2015.
Fayetteville aldermen will decide next week whether to keep the city's property tax rate at 3.1 mills -- the same rate it has been since 2005.
By The Numbers
City Millage
Fayetteville aldermen are likely to keep the city’s property tax rate at 3.1 mills in 2015 for an 11th straight year. Of that, 1.3 mills goes to the city’s general fund; 1 mill goes to the Fayetteville Public Library; and 0.8 mills goes to the Policemen’s and Firemen’s Pension and Relief funds. Other cities property tax rates in 2014:
• Springdale: 8.2 mills
• Fort Smith: 8 mills
• Bentonville: 5.5 mills
• Rogers: 4.8 mills
Source: Arkansas Assessment Coordination Department
Mayor Lioneld Jordan said Tuesday he saw no need for an increase next year.
"I think for the most part, the citizens have been happy with the services we've been providing," Jordan said.
A mill is equal to one-tenth of 1 percent. Property taxes are figured based on a property's assessed value, which is 20 percent of what the Washington County Assessor estimates the property is worth.
At 3.1 mills, the owner of a $150,000 house pays $93 to the city each year.
Fayetteville's millage includes 1.3 mills for the general fund, 1 mill for the Fayetteville Public Library and 0.4 mills apiece for the Policemen's and Firemen's Pension and Relief funds. It's expected to generate about $4.1 million this year.
According to state law, a maximum of 5 mills can be directed into the general fund.
The bulk of property taxes homeowners pay (42.9 mills) go to the Fayetteville School District. Another 5 mills go to Washington County.
Overall, the property tax rate is 51 mills for most Fayetteville homeowners, according to the Arkansas Assessment Coordination Department. That works out to a roughly $1,530 property tax bill for the owner of a $150,000 house.
Setting the millage is one of the first steps each year in the budget process. It allows members of the Budget and Information Management Division to prepare an estimate for the city's general fund.
According to a report Tuesday by Paul Becker, city finance director, about 4.6 percent of next year's $38.2 million general fund will come from property taxes.
The lion's share -- about 61.5 percent -- will come from sales taxes.
Becker predicated next year's general fund budget on 2 percent sales tax growth in 2015 compared to this year.
He said Tuesday he and Jordan weren't ready to recommend employee raises until the books are closed on 2014 in the first quarter of next year.
"The first quarter is usually a good indicator of what direction we're going," Becker said. "That's why we discuss salaries at that point in time."
It may be more challenging to give raises next year, Becker added.
According to an Aug. 21 memo, sales taxes were down about 0.4 percent in the first seven months of 2014. Becker said earlier this year sales taxes would have to climb 3.6 percent to pay for raises the City Council approved March 4.
Aldermen are scheduled to review the rest of the 2015 budget, including capital improvements and enterprise funds on Nov. 19. The budget must be approved by the end of the year in order to ensure all bills will be paid after Jan. 1.
NW News on 09/10/2014