The Fayetteville City Council held to its promise to hold down any increase in property taxes this year. The council Aug. 19 approved a rollback millage rate of 3.24 mills. The rate will include 2.345 mills for the General Fund budget and .895 mills for the Capital Project Funds budget.
This year’s rate is considered a rollback, or perhaps a roll-up, due to the reassessment of real property, most of which saw a decrease in value over the past year, Finance Director Lynn Robinson said.
Robinson said the millage equivalent of reassessed value shows a deficit of -.252 mills over fiscal year 2009’s mill rate. The digest for calendar year 2010 decreased by a negative 7.68 percent over calendar year 2009 for the reassessment of existing real property, Robinson said. Other changes to taxable digest decreased by -1.31 percent for calendar year 2010 over calendar year 2009, mainly due to motor vehicles. Therefore, the overall digest decreased by -8.99 percent, said Robinson.
Robinson said the General Fund millage rate for 2010 will be 2.345 mills and capital projects fund’s millage rate will be .895 mills for the 2010 digest, adding that the total rollback millage of 3.240 mills only reflects the reassessed value. A mill will be worth $843,430 which equates to total digest taxes of $2,732,713.
Robinson said city staff budgeted $2,769,154 for fiscal year 2011 in anticipation of the decrease of -8.99 percent. The General Fund budget will need to be amended to reflect the deficit of -$36,441, Robinson said.