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HomeMy WebLinkAbout164-98 RESOLUTION• RESOLUTION NO. 16 4 - 9 8 A RESOLUTION ADOPTING THE 1999 ANNUAL BUDGET AND WORK PROGRAM FOR THE CITY OF FAYETTEVILLE. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section L That the City Council hereby adopts the 1999 Annual Budget and Work Program for the City of Fayetteville. A copy of the budget and work program and amendment is attached hereto marked Exhibit "A" and Exhibit "B", and made a part hereof. PASSiSND APPROVED this 1t day of December , 1998. Edi 1 07- APPROVED. ATTEST: By: a„, /&/"-n Heather Woodruff, City C rk By. red Hanna, Mayor City Clerk's Office File Copy City of Fayetteville, Arkansas Annual Budget and Work Program ado / 9ti MICROFILMED 1 • 1999 FAYETTEVILLE THE CITY OF FAYETTEV LLE, ARKANSAS DEPARTMENTAL CORRESPONDENCE TO: Department Directors and Division Heads FROM: Fred Hanna, Mayor , ✓7 DATE• March 11, 1999 SUBJECT: 1999 Adopted Annual Budget & Work Program The enclosed Annual Budget & Work Program is presented for your use and reference. The annual budget is an appropriation document that authorizes spending for the current year. Additionally, the budget document provides information concerning the City's organization structure, the City's fiscal position, the City's Capital Improvement Program, and performance measures for each operating division within the City. If you have any comments, suggestions for improvement, or questions concerning the City's annual budget please contact either Kevin Crosson, Administrative Services Director or Steve Davis, Budget Coordinator. Finally, I would like to thank each of you for your efforts in preparing the 1999 submissions for review and, especially spending the extra time developing your goals and objectives. The material enclosed in this document is an essential source of information describing the short and long term goals for the City of Fayetteville. This document would not be possible without your time and support. 1 City of Fayetteville, Arkansas 1999 Annual Budget and Work Program City Council and Other Elected Officials Robert Reynolds, Ward 1 - Position 1 Kit Williams, Ward 1 - Position 2 Cyrus Young, Ward 2 - Position 1 Kyle Russell, Ward 2 - Position 2 Trent Trumbo, Ward 3 - Position 1 Donna Pettus, Ward 3 - Position 2 Len Schaper, Ward 4 - Position 1 Heather Daniel, Ward 4 - Position 2 Jerry Rose, City Attorney Heather Woodruff, City Clerk/Treasurer Rudy Moore, Municipal Judge Submitted by Fred Hanna, Mayor Kevin Crosson, Administrative Services Director Richard Watson, Police Chief Mickey Jackson, Fire Chief Charles Venable, Public Works Director Prepared by Stephen Davis, Budget Coordinator Kevin Spnnger, Financial Analyst Barbara Fell, Research Analyst • GOVERNMENT FINANCE OFFICERS ASSOCIATION Distinguished Budget Presentation Award PRESENTED TO City of Fayetteville, Arkansas For the Fiscal Year Beginning January 1, 1998 Etiiuis,4.e4dist,/rfdee President . Executive Director The Government Finance Officers Association of the United States and Canada (GFOA) presented an award of Distinguished Budget Presentation to the City of Fayetteville, Arkansas for its annual budget -for the fiscal year beginning January 1, 1998 In order to receive this award, a governmental unit must publish a budget document that meets program critena as a policy document, as an operations guide, as a financial plan and as a communications device. The award is valid for a period of one year only. We believe our current budget continues to conform to program requirements, and we are submitting it to GFOA to determine its eligibility for another award. 1 1 • FAYETTEVILLE MISSION STATEMENT The City of Fayetteville's mission statement is a direct result of a volunteer team of employees charged with creating a mission statement that expressed the service core of City operations, reflected our beliefs concerning City services, and was easy to remember. All City employees were given an opportunity to provide input for the mission statement. The mission statement was then adopted by the City Council and is as follows: To protect and improve our quality of life by listening to and serving the people with pride and fairness. • City Attorney I-Prosecutormi City Clerk / Trcssurer Pnlice -Communications City of Fayetteville Organizational Chart Firc Citizens of Fayetteville Mayor City Council Airpon -Cable Administration ' Public Works 'Engineering Inspections - Parks & Recreation -Planning -Solid Waste 1 -Street Traffic Wastewater Treatment -W aier & Sewer Administraiivc Services Municipal Judge Accounting & Audit -Animal Services -Budget & Research Building Maintenance -Conununity Development -Fleet Operations iWin-nation Technology .Municipal Coun [Personnel [Purchasing -Water & Sewer Services 1 1 1 1 1 1 1 1 1 a City of Fayetteville, Arkansas Table of Contents Budget Message Transmittal Memo from the Mayor to Council I -XV Budget Resolution XVI Budget Process and Policies Budget Process 1-2 Budget Flowchart 3 Financial Policies: Revenue Policy 4 Expenditure Policy 4-5 Debt Policy 5 Reserve Policy 5 Investment and Cash Management Policy 5 Capital Improvement Policy 6 Financial Reporting Policy 6 Administrative Procedures to Adjust the Approved Budget 7-8 Budget Organizational Structure 9 Consolidated Fund - Department - Program Summary 10 Fund Summaries Chart of Fund Types - Governmental I I Combined Statement of Fund Position - Governmental (Shown by Department) 12 Chart of Fund Types - Proprietary & Fiduciary 13 Combined Statement of Fund Equity - Proprietary & Fiduciary (Shown by Department) 14 Sources and Uses of Funds 15 Governmental Funds General Fund: Sources and Uses of Funds 18 Comparative Budget Summary 19 Expenditure Summary 20-21 Special Revenue Funds Street Fund: Sources & Uses of Funds 22 Revenue & Expenditure Summary 23 City Advertising & Promotion Fund: Revenue & Expenditure Summary 24 Off Street Parking Fund: Revenue & Expenditure Summary 25 Community Development Block Grant Fund: Revenue & Expenditure Summary 26 Parks Development Fund: Revenue & Expenditure Summary 27 City of Fayetteville. Arkansas Table of Contents (continued) Drug Law Enforcement Fund: Revenue & Expenditure Summary 28 Debt Service Funds Arts Center Bond Fund: Revenue & Expenditure Summary 29 Capital Projects Funds Replacement Fund: Revenue & Expenditure Summary 30 Sales Tax Capital Improvements Fund: Revenue & Expenditure Summary 31 Capital Project Detail - 1999 32-33 Enterprise Funds Water & Sewer Fund: Sources & Uses of Funds 36 Revenue & Expenditure Summary 37 Solid Waste Fund` Sources & Uses of Funds 38 Revenue & Expenditure Summary 39 Airport Fund: Sources & Uses of Funds 40 Revenue & Expenditure Summary 41 Town Center and Parking Facility Fund: Revenue & Expenditure Summary 42 C.E.C. and Parking Facility Fund: Revenue & Expenditure Summary 43 Trust Funds Police Pension Fund: Revenue & Expenditure Summary 44 Fire Pension Fund: Revenue & Expenditure Summary 45 Municipal Judge Retirement Fund: Revenue & Expenditure Summary 46 Internal Service Funds Shop Fund: Revenue & Expenditure Summary 47 Major Revenue Sources 48-50 General Government: Organizational Structure 51 Overview 52 Department Goals - 1999 53 Goals & Results - 1998 54-55 Program Expenditure Summary 56-57 Personnel Summary 58 Mayor's Administration 59 City of Fayetteville, Arkansas Table of Contents (continued) City Council 60 City Attorney 61 City Prosecutor 62 Hot Check 63 Municipal Judge 64 Cable Administration 65 City Clerk/Treasurer 66 Miscellaneous 67 Airport - Landside Operations 68 Airport - Airside Operations 69 Airport - Capital 70 Administrative Services: Organizational Structure 71 Overview 72 Department Goals - 1999 73-74 Goals & Results - 1998 75-77 Program Expenditure Summary 78-81 Personnel Summary 82-84 Administrative Services Director 85 Personnel 86 Accounting and Audit 87 Budget & Research 88 Utility Billing and Collection 89 Internal Audit 90 Building Maintenance - General Maintenance 91 Building Maintenance - Janitorial 92 Procurement / Risk Management 93 Information Technology 94 Municipal Court - Criminal 95 Municipal Court - Probation & Fine Collection 96 Municipal Court - Small Claims & Civil 97 Animal Services - PatroLEmergency Response 98 Animal Services - Animal Shelter 99 Parking Management Program 100 Community Development - Administration & Planning 101 Community Development - Housing Services 102 Community Development - Home Grant 103 Community Development - Public Services 104 Community Development - Public Facilities & Improvements 105 Meter Operations 106 Meter Maintenance & Backflow Prevention 107 Fleet Operations - Vehicle Maintenance 108 Fleet Operations - Capital 109 City of Fayetteville, Arkansas Table of Contents (continued) Police Department: Organizational Structure 111 Overview 112 Department Goals - 1999 113 Goals & Results - 1998 114 Program Expenditure Summary 115 Personnel Summary 116 Central Dispatch 117 Police - Support Services 118 Police - Patrol 119 Police - Drug Enforcement 120 Fire Department: Organizational Structure 121 Overview 122 Department Goals - 1999 123 Goals & Results - 1998 124 Program Expenditure Summary 125 Personnel Summary 126 Fire - Fire Prevention. 127 Fire - Operations 128 Fire - Training & Continuing Education 129 Fire - Aircraft Rescue & Fire Fighting 130 Public Works: Organizational Structure 131 Overview 132 Department Goals - 1999 133-134 Goals & Results - 1998 135-137 Program Expenditure Summary 138-144 Personnel Summary 145-147 Public Works Director 148 City Engineering - Plans and Specifications 149 City Engineering - Operations & Administration 150 City Engineering - Right of Way Acquisition 151 City Engineering - Public Construction. 152 Planning 153 Inspections 154 Parks - Administration 155 Parks - Swimming Pool 156 Parks - Athletic/Recreation Transfers 157 Parks - Library 158 City of Fayetteville. Arkansas Table of Contents (continued) Parks - Lake Maintenance 159 Parks - Parks Maintenance 160 Traffic - Engineering & Planning 161 Traffic - Traffic Control & Parking Meter Maintenance 162 Public Works Director - Public Lands Maintenance 163 Street - Operations & Administration 164 Street - Right of Way Maintenance 165 Street - Street Maintenance 166 Street - Drainage Maintenance 167 Street - Street Construction 168 Public Works Director - Sidewalk & Trail Maintenance 169 Parks - Parks Development & Maintenance 170 Water Purchased 171 Water & Sewer Maintenance - Operations & Administration 172 Water & Sewer Maintenance - Water Distribution Maintenance 173 Water & Sewer Maintenance - Water Storage & Pump Maintenance 174 Water & Sewer Maintenance - Sewer Main Maintenance 175 Wastewater Treatment Plant 176 Water & Sewer Maintenance - Capital Water Mains 177 Water & Sewer Maintenance - Capital Expenditures 178 Water & Sewer Maintenance - Connections 179 Water & Sewer Maintenance - Sewer Mains Construction 180 Wastewater Treatment Plant - Capital 181 Water and Sewer - Debt Service 182 Solid Waste - Operations & Administration 183 Solid Waste - Commercial Collections 184 Solid Waste - Residential Collections 185 Solid Waste - Recycling 186 Solid Waste - Composting 187 Capital and Debt Capital Improvements Program Introduction 189 Capital improvement Program Directional Information 190-194 Summary of Project Requests & Project Resources 195 Capital Improvement Projects by Project Area - All Sources 196 Sales Tax Capital Improvements Funding - By Project Category 197 Capital Improvements Program Comprehensive Detail 198-201 1999 Capital Budget 202-204 Debt Position 205 Description of Outstanding Bonds 206 Schedule of Bonds Outstanding 207 Legal Debt Margin Calculation 208 Debt to Maturity Schedule 209 City of Fayetteville, Arkansas Table of Contents (continued) Appendix City of Fayetteville Organizational Chart 211 List of Elected Officials, Administrative Officials, & Management Staff 212 Personnel Summary 213 Personnel Variation Summary214-215 Community Overview 216-218 Miscellaneous Statistical Data 219 Glossary • 220-225 Index 226-229 CITY OF FAYETTEVILLE, ARKANSAS THE BUDGET DOCUMENT The City of Fayetteville's budget document is a six -part presentation consisting of the following sections: Budget Message Budget Process and Policies Fund Summaries Department Summaries: - General Government - Administrative Services - Police - Fire - Public Works Capital and Debt Appendix Budget Message This section begins with a brief review setting forth the budgetary plan and objectives, as proposed by the Mayor, for 1999. The budget message section gives the reader the synopsis of the work program for the City in the next year and provides a guide to the budget document. Budget Process and Policies The budget process and policies section gives the reader the procedural insight into the preparation of the Proposed 1999 Budget and Work Program and financial policies for the City. These policies include: Budget Adjustment Policy, Revenue Policy, Expenditure Policy, Debt Policy, Reserve Policy, Investment and Cash Management Policy, Capital Improvement Policy, and Financial Reporting Policy. Fund Summaries The Fund Summaries section contains information concerning fund types and fund positions that depicts the financial activity projected for the City during the coming year for each fund. Department Summaries This section consists of the five major departments: General Government, Administrative Services. Police, Fire, and Public Works. The Department Summaries section contains the following: (1) Department Overview - This section provides a brief summary of total expenditures and significant changes for each department. (2) Program Expenditure Summaries - This section reflects expenditures by category for each program in a Department for Actual 1997, Budgeted 1998, Estimated 1998, and Budgeted 1999. (3) Personnel Summaries - This section provides a comparison of staffing levels during the past four years for each department. (4) Program Performance Pages - These pages reflect the individual performance pages for each program. Capital and Debt This section contains: a synopsis of the 1999-2003 Capital Improvements Program and planned capital expenditures for 1999; a synopsis of the City's projected debt position as of December 31, 1998; and general information concerning general obligation and revenue bond debt. Appendix The Appendix contains a City organization chart, a list of elected City officials, City management staff, a personnel variation summary for all City departments, a community overview, a glossary, and, an index. The glossary provides definitions of frequently used budgeting and accounting terms. The index cross-references the budget document by division or activity/program. FAYETTEVILLE THE CITY OF FAYETTEVILLE, ARKANSAS December 15, 1998 Members of the City Council and Citizens of Fayetteville: I hereby present the 1999 Adopted Budget for the City of Fayetteville, Arkansas. It has been prepared and submitted in accordance with Arkansas statute which require that the Mayor, under the aldermanic form of government, submit to the City Council the annual budget for approval. This Budget contains funding for all operating funds and incorporates the 1999 capital projects from the approved 1999-2003 Capital Improvements Program. 1998 - A YEAR IN REVIEW During 1998 several events occurred that will have an impact on the City for the next few years. The most significant issue facing the City is the improvements planned to our wastewater collection system and our wastewater treatment plant The City has completed an in depth facilities plan that examined our needs for the next twenty years. The facilities plan stated that the City will need to plan and implement improvements to our sewer collection system, make improvements to our existing plant, and to construct a second plant west of Fayetteville in the Illinois River Watershed. Legislation enacted into law by the Arkansas General Assembly during its 1997 legislative session requires that cities in Arkansas place wastewater treatment facilities within their corporate boundary or prove that doing so is not feasible. Primarily, because of this legislation, the City conducted a special election for the purpose of annexing land within the Illinois River watershed that was suitable for a wastewater treatment plant. The special election was held on November 4, 1997 and the annexation proposal was defeated. During 1998, City Council and staff have continued to evaluate the options available for improvements to our wastewater collection and treatment system. During October and November, staff and the City Council Water & Sewer Committee determined that purchasing land in the Illinois river watershed presented the City with the best options for long term improvements to our wastewater collection and treatment system. Land suitable for siting the second plant was identified and the City Council Water & Sewer Committee authorized staff to obtain signed offers and acceptances from the property owners. Subsequently, the City Council asked that the staff obtain one-year options to purchase while investigating a possible regional solution. Based on the facilities plan, the City is losing valuable time to implement the identified needed improvements. City Council and City staff will need to continue working on a solution. Currently, the Paul Noland Wastewater Treatment Plant processes wastewater for the cities of Fayetteville, Elkins, Farmington, Greenland, and parts of Johnson. 113 WEST MOUNTAIN 72101 501.521.7700 FAX 501.575-8257 I During 1998, City Council approved changing our residential curbside recycling program from co - mingled blue bags to a source separated bin. Citizens will be provided an eighteen (18) gallon bin and will be asked to place his or her recyclables at the curb once each week. To collect the recyclables, the City has purchased six new collection vehicles and the driver will separate the recyclables into compartments that will be off loaded at the Transfer Station/Recycling Center into storage bins. As the storage bins are filled, the material will be baled for loading into semitrailers for transport to a recyclable material buyer. City Council approved a residential volume -based collection system scheduled to begin in January 2000. City Council approved distributing one hundred four (104) thirty (30) gallon purple trash bags for each household. If residents need additional bags, they may be purchased from the Solid Waste Division. On November 1, the Northwest Arkansas Regional Airport opened its terminal for air traffic. American Eagle has moved from Drake Field to the regional airport. Trans World Express and Atlantic Southeast have announced there intention to relocate to the regional airport in early 1999. American Eagle, Trans World Express and Atlantic Southeast accounted for approximately 79% of the enplanements at Drake Field. The Airport revenue and expenditure budgets for 1999 have been adjusted to reflect the loss of passenger enplanements. Election issues that resulted from the special census were addressed. Aldermanic terms will move from two years to four years and aldermanic positions will be for staggered terms. In the 1998 election, alderman position 1 is a four year term and position 2 is a two year term. In 2000, the Mayor, City Clerk, and alderman in position 2 will run for four year terms. Additionally, City ward boundaries were redrawn during 1998 to better equalize representation. City staff has initiated a comprehensive review of date sensitive automated systems to insure continued operations as we move into the year 2000. The City's financial system computer and software and public safety computer and software systems have been upgraded. Funding is contained in this budget to upgrade our telephone systems and replace embedded technology as needed. The Town Center, approved by the citizens of Fayetteville in 1997, is scheduled to be bid in early 1999. During 1998, a lease agreement between the City and the Advertising & Promotion Commission was executed and the Town Center Bonds were approved by City Council and issued. The debt service funding for the bonds is from the Advertising & Promotion Hotel, Motel, and Restaurant (HMR) tax. During 1998, the City accepted a grant that provided the majority of the funding for a mobile computing equipment system to be utilized by patrol officers. The mobile computing equipment system will enable police officers to directly access State/Federal records database. The mobile computing equipment project is planned to be on line in early 1999. The grant also included funding for a report taker position in the Police Department. A construction contract has been awarded for the construction of Fire Station Number Six,located at Hollywood Street and 6th Street. The architectural drawings for the replacement of Fire Station Number Four are in progress with bids tentatively scheduled for early in the P` quarter 1999. Fire Station Number Four will be relocated from Harold Street to Plainview Avenue. II Status of Projects Budgeted for 1998 The City has approximately $49.5 million in capital projects budgeted for 1998. The current status of the major projects budgeted for 1998 are listed below: Street, Drainage and Transportation Improvements $ 10.6 million • Highway 265 Widening - Right -of -Way ($1.0 million). This project is currently in design by the Arkansas Highway and Transportation Department. The City's right-of-way acquisition funding has been forwarded to the Arkansas Highway & Transportation Department. The AHTD will be acquiring the necessary right-of-way for the project. • Sycamore Street - Leverett to Garland ($.8 million). This project is currently in design. Utility relocations have delayed the bid date of this project. • In -House Street Improvements ($.9 million). Approximately 100,000 square yards of asphalt has been laid with the following work to be completed this season: Woolsey from Sycamore to North Street and installation of the finish layer of asphalt on Green Acres from Township to North College and South Street from College Avenue to Archibald Yell. • Twentieth Street - West of South School ($.4 million). This project is scheduled for completion in the 4th quarter 1998. • Mud Creek Bridge ($.7 million). The bridge construction project is anticipated to be complete in the 4th quarter 1998. • Poplar Street Improvements ($.7 million). This project will make drainage improvements along Poplar Street and is scheduled to be bid in the 4th quarter 1998. • Trailway/Railroad Corridor Construction ($.7 million). Right-of-way acquisition for this project is currently in progress. • Sunbridge Extension from Villa to North College ($.6 million). This project is expected to be bid in the 1' quarter 1999 with construction scheduled to begin in the 2nd quarter 1999. Water & Sewer Improvements $14.6 million • Sanitary Sewer System Rehabilitation ($4.1 million). Engineering and construction contracts for sanitary sewer system rehab planned for 1998 have been awarded. • Highway 265 Water/Sewer Relocations ($1.8 million). Due to changes in project scope, the total project is estimated to cost $3.35 million. The additional funds are included in the 1999-2003 CIP. This highway improvements project is currently in design by the Arkansas Highway and Transportation Department. Engineering for the water/sewer relocations will be able to proceed as soon as the highway improvement project engineering is complete. III • Highway 45 East Pump Station & Elevated Tank Project ($2.6 million). The engineering and construction contracts have been awarded with completion scheduled in the 2nd quarter 1999. • Wastewater Collection System Improvements Engineering ($1.0 million). An engineering contract for improvements to the City's wastewater collection system is pending a site location determination for the second wastewater treatment plant. • Wastewater Treatment Plant Engineering ($1.0 million). An engineering contract for improvements to the City's wastewater treatment plant is pending a site location determination for the second wastewater treatment plant. • White River Water Authority Acquisition and Improvements ($.7 million). The 12" waterline connecting the City water system and the White River Water Authority system is complete. Other significant projects: • Town Center/Parking Garage Project ($7.5 million). The architectural contract has been approved, the bond issue has been authorized, and an operating agreement between the City and the Advertising & Promotion Commission has been executed. • Fire Station Number Six Expansion ($.6 million). A construction contract has been awarded with projected completion in the 2"d quarter 1999. 1999 - THE YEAR AHEAD The 1999 Budget for the City of Fayetteville continues to build on philosophies of.enhanced customer service, cost-effective government, and responsive government. With the assistance of the City Council and continued input from the citizens of Fayetteville, there are a number of projects, programs, and initiatives that can be accomplished. Together, we must face the challenges to be met in 1999 to improve the quality of life in Fayetteville. The following is a discussion of some of the issues, challenges, and highlights contained in the 1999 Budget. • Issues and Challenges County sales tax revenue comprises approximately 43% of General Fund revenue. However, the growth rate is slowing down. County sales tax growth for 1995 and 1996 averaged approximately 8% compared to approximately 4% for the past two years. This budget projects County sales tax to grow at approximately 3% for 1999. As a result of the County sales tax growth slowing and the need to provide continuing funding for existing governmental operations, the transfer from City sales tax for General Fund operations remains at 25% for 1999. When the voters approved the City sales tax in 1993, the City Council committed that at least 75% of the revenue generated would be used for capital improvements. In addition, the funding revenues for Street Fund and Parks Development Fund are projected to grow very modestly. The City's wastewater facilities plan was completed in 1997. The findings of the plan state that we will have to expand our current wastewater treatment plant or build an additional wastewater IN/ treatment plant. Additionally, we will need to make extensive improvements to our sewer collection system. The combined first phase costs for the improvements identified in the study are approximately $68 million. This budget contains $2.9 million to purchase land for the wastewater treatment plant expansion project. The financial impact to the City of the opening of the Northwest Arkansas Regional Airport in Highfill has not been determined. American Eagle moved passenger operations to the regional airport on November 1 and Trans World Express and Atlantic Southeast have announced plans to move passenger operations to the regional airport in early 1999. Historically, these airlines have enplaned approximately 79% of the total passengers at Drake Field. In addition to the direct impact of the airlines moving from Drake Field, the Advertising & Promotion Commission is anticipating little or no growth in hotel, motel and restaurant tax revenue for 1999. The City has a 2% Hotel, Motel and Restaurant Tax. 1% supports the Advertising & Promotion Commission activities and the other 1% supports the Parks Development Fund which funds a significant portion of our parks maintenance expenditures as well as a significant portion of our parks capital improvements. During 1999, the City will begin planning the upgrade for our citywide radio system. The current radio system is approximately thirteen years old. Motorola, the manufacturer of the existing radio system, has notified the City that they will no longer manufacture replacement parts for the older model radios, repeaters, and consoles after 1999. The options faced by the City include funding an upgrade of the existing Motorola system, funding an entirely new 800 trunking radio system, or funding several independent radio systems that do not have the ability to communicate between departments. This budget contains $100,000 in funding for the radio replacement project. An additional $777,000 in funding is planned for the year 2000. The City was awarded HOME program funds to continue funding for the City's home owners' rehabilitation program. During 1999, the City will be purchasing vacant houses that are in need of rehabilitation. After the houses are rehabilitated, they will be offered to qualifying families at a mortgage payment the families can afford. The City began a program in 1991 with the goal of adding three police officers and three firefighters per year over a five year period. The initial five year period ended in 1995. As the City continues to grow, additional police and fire personnel will be needed. This budget contains four police officers and two police clerical positions. Court action that could impact the City involves challenges filed in Washington County concerning roll back of property taxes. The City receives property tax revenue for the Fire and Police Pension funds. If the lawsuits are successful, the City might have to refund some property tax collections for the years beginning in 1996. The estimated potential financial impact to the City of these lawsuits is approximately $75,000 annually for the past three years. Unfunded federal and state mandates continue to place a burden on local governments nationwide and Fayetteville is no exception. In addition to allocating resources to meet the requirements of the Clean Water Act and American with Disabilities Act (ADA), the City must allocate funds to comply with the regulations for commercial drivers' license holders, licensing requirements for solid waste transfer station workers, and licensing requirements in the water and wastewater areas. V