Even though Fayetteville is keeping its millage rate the same, the result

will be a tax increase due to the increase in property valuations and the

new buildings added to this year's tax digest.

The millage rate will remain at 3.033 mills, but that will result in a net

tax increase of $224,943, according to city figures.

Because the city is not rolling back the millage rate to compensate for

the increased tax digest, the city is required to have special public hearings

on the budget. The first is scheduled Thursday, Aug. 5, at 8 a.m., with another

public hearing slated for the council meeting that night at 7:30. A final

public hearing on the tax hike will be Thursday, Aug. 12, at 6 p.m.

The 2004-05 budget totals $29.09 million, with $8.85 million for the general

fund, $11.75 million for water and sewer, $6.56 million for capital projects

and $1.16 million in impact fees.

The water and sewer fund is larger than normal thanks to the bond issue

recently approved by council to fund expansion of the city's sewer plant

and improvements to the city's stormwater system. The city has begun

to charge individual homeowners $2.95 a month, and commercial establishments

at higher rates, to recoup some of the money for the stormwater improvements.

The capital projects fund includes $3.2 million for the police station/municipal

court building which will be financed, increasing the city's annual

debt service. Also in the capital projects fund is $1.63 million for pedestrian

improvements on Lanier Avenue -�but $1.3 million of that will be paid

for with grant proceeds from the Atlanta Regional Commission's Livable

Centers Initiative program.

Sales tax revenues account for 32 percent of the city's projected general

fund revenues for the coming fiscal year.

Property taxes come in at 18.5 percent of the city's general fund revenues,

with business taxes at just under 16 percent.