The

Fayetteville City Council Monday night approved a

budget of just over $7 million, and officials are

predicting a slight millage decrease as a result

of the ever-growing tax digest.

The

general fund budget of $7.1 million represents a

1.15-percent increase over the 2000 fiscal year,

according to city finance and administration

director Lynn Raven.

The

new budget allows for a 5-percent increase in

personnel spending to fund a pay-for-performance

salary plan. Initial plans to combine a smaller

pay-for-performance allotment with an

across-the-board cost-of-living increase were

rejected by the City Council, which chose to give

the various department heads the authority to tie

all pay increases to performance.

The

city is forecasting a 7-percent hike in the tax

digest, a figure Raven called

"conservative." Based on one mill

equalling $391,423, the FY2001 millage is

expected to be about 3.31 mills, with 2.59 for

the general fund and .75 for the capital projects

fund. The millage for 2000 was 3.34.

Six

new positions have been funded in the new budget.

The fire and water/sewer departments will each

add an administrative clerk, and two distribution

workers are slated for the water/sewer department

as well. Other new positions include a school

resource officer in the police department and an

accounting supervisor in the

finance/administration department.

Total

revenues from the city's six different funds

- general, water/sewer, solid

waste/recycling, capital projects, impact fee,

and cemetery trust - are expected to reach

$15 million in the coming year.

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