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HomeMy WebLinkAboutOrdinance 6487 /oF AYE tJf i\�RK4 N 5' 113 West Mountain Street Fayetteville,AR 72701 ARCHIVED (479)575-8-8323 Ordinance: 6487 File Number: 2021-0685 C) N •:co c ' 2021 M[LLAGE LEVY: Aie°m o z-,,,-< AN ORDINANCE LEVYING A TAX ON THE REAL AND PERSONAL PROPERTY W11?I1-- THE CITY OF FAYETTEVILLE,ARKANSAS, FOR THE YEAR 2021 FIXING THE RAA..‹ st FT THEREOF AT 2.3 MILLS FOR GENERAL FUND OPERATIONS,0.4 MILLS FOR THE--) " = fl FIREMEN'S PENSION AND RELIEF FUND,0.4 MILLS FOR THE POLICEMEN'S PENt481$17., AND RELIEF FUND,2.5 MILLS FOR FAYETTEVILLE PUBLIC LIBRARY OPERATIONS 2: AND 1.2 MILLS FOR THE FAYETTEVILLE PUBLIC LIBRARY EXPANSION;AND CERTIFYING THE SAME TO THE COUNTY CLERK OF WASHINGTON COUNTY, ARKANSAS BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1: That a tax is hereby levied on the real and personal property within the City of Fayetteville, Arkansas,for the year 2021 to be collected in 2022 for the following purposes at the following rates: REAL AND PERSONAL PROPERTY Purpose Levy General Fund-Operations 2.3 mills Fayetteville Public Library-Operations 2.5 mills Fayetteville Public Library-Expansion 1.2 mills Policemen's Pension and Relief Fund 0.4 mills Firemen's Pension and Relief Fund 0.4 mills Page 1 Printed on 10/6/21 Ordinance 6487 File Number 2021-0685 TOTAL 6.8 mills Section 2: That the real and personal property tax so levied and the rates provided therefor are hereby certified to the County Clerk of Washington County. Arkansas. to be placed in the tax book and collected in the same manner that the county and school district taxes are collected. Section 3: The City Clerk is hereby authorized and directed to file a certified copy of this Ordinance in the Office of the County Clerk for Washington County. Arkansas. PASSED and APPROVED on 10/5/2021 Attest: K,• Ti i �� G.•I Y•. ;1:>.�,. FAYETf Kara Paxton, City Clerk Treastt�r ; EV(LLE: 9p• � 9,QkAN-O •'fi ��. y''•...••' ,�N i�e LNG, ON110.`%� Page 2 Printed on 1016121 WASHINGTON COUNTY STATE OF ARKANSAS Washington County Courthouse 280 North College Avenue, Suite 300 Fayetteville. Arkansas 72701 Telephone: (479) 444-1711 Fax: (479) 444-1994 BECKY LEWALLEN County And Probate Clerk City Clerk Dear Clerk: Please submit the tax levy figures for your City for the year 2021. The Quorum Court meets on November l 8'. 1 need this information by the beginning of November. Please give us the total levy figure and complete breakdown of tax in the space provided below. This information must be provided on this form. Sincerely yours, Becky Lewallen Washington County Clerk TOTAL 6.8 Mills BREAKDOWN 2.3 Mills General Fund - Operations MILLS 2.5 Mills Fayetteville Public Library - Operations 1.2 Mills Fayetteville Library - Expansion 0.4 Mills Policemen's Pension and Relief Fund 0.4 ]lls FIremenls Pension and Relief Fund ATURE AND TVLE OF PERSON AUTHORIZED TO SUBMIT TAX City of Fayetteville, Arkansas 113 West Mountain Street Fayetteville, AR 72701 (479)575-8323 Text File File Number: 2021-0685 Agenda Date: 10/5/2021 Version: 1 Status: Passed In Control: City Council Meetinq File Type: Ordinance Agenda Number: B.2 2021 MILLAGE LEVY: AN ORDINANCE LEVYING A TAX ON THE REAL AND PERSONAL PROPERTY WITHIN THE CITY OF FAYETTEVILLE, ARKANSAS, FOR THE YEAR 2021 FIXING THE RATE THEREOF AT 2.3 MILLS FOR GENERAL FUND OPERATIONS, 0.4 MILLS FOR THE FIREMEN'S PENSION AND RELIEF FUND, 0.4 MILLS FOR THE POLICEMEN'S PENSION AND RELIEF FUND, 2.5 MILLS FOR FAYETTEVILLE PUBLIC LIBRARY OPERATIONS AND 1.2 MILLS FOR THE FAYETTEVILLE PUBLIC LIBRARY EXPANSION; AND CERTIFYING THE SAME TO THE COUNTY CLERK OF WASHINGTON COUNTY, ARKANSAS BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1: That a tax is hereby levied on the real and personal property within the City of Fayetteville, Arkansas, for the year 2021 to be collected in 2022 for the following purposes at the following rates: REAL AND PERSONAL PROPERTY Purpose Lev General Fund - Operations 2.3 mills Fayetteville Public Library - Operations 2.5 mills Fayetteville Public Library - Expansion 1.2 mills Policemen's Pension and Relief Fund 0.4 mills Firemen's Pension and Relief Fund 0.4 mills TOTAL 6.8 mills Section 2: That the real and personal property tax so levied and the rates provided therefor are hereby certified to the County Clerk of Washington County, Arkansas, to be placed in the tax book and collected in the same manner that the county and school district taxes are collected. Section 3: The City Clerk is hereby authorized and directed to file a certified copy of this Ordinance in the Office of the County Clerk for Washington County, Arkansas. City of Fayetteville, Arkansas Page 1 Printed on 101612021 File Number: 2021-0685 City of Fayetteville, Arkansas Page 2 Printed on 101612021 Kevin Springer Submitted By City of Fayetteville Staff Review Form 2021-0685 Legistar File ID 9/21/2021 City Council Meeting Date - Agenda Item Only N/A for Non -Agenda Item 9/2/2021 Submitted Date BUDGET & INFORMATION MGMT (133) Division / Department Action Recommendation: City Council is requested to adopt real and personal property tax rates for 2021 for the Policemen's Pension & Relief, the Firemen's Pension & Relief Funds, the Fayetteville Public Library and the City's General Fund. The rate to be adopted for the Policemen's Pension & Relief Fund and the Firemen's Pension & Relief Fund is 0.4 mils for real property and 0.4 mils for personal property. The rate for the Fayetteville Public Library is 3.7 mils for real property and 3.7 mils for personal property. The rate requested for the City's General Fund is 2.3 mils for real property and 2.3 mils for personal property. Account Number Project Number Budgeted Item? No Does item have a cost? No Budget Adjustment Attached? No Budget Impact: Current Budget Funds Obligated Current Balance Item Cost Budget Adjustment Remaining Budget Fund Project Title V20210527 Purchase Order Number: Previous Ordinance or Resolution # 6361 Change Order Number: Approval Date: Original Contract Number: Comments: CITY OF FAYETTEVILLE ARKANSAS MEETING OF SEPTEMBER 21, 2021 TO: Mayor and City Council THRU: Paul A. Becker, Chief Financial Officer FROM: Kevin Springer, Budget Director DATE: September 2, 2021 SUBJECT: 2021 Millage Levy CITY COUNCIL MEMO RECOMMENDATION: City staff recommends that City Council approve the millage levy ordinance which includes 0.4 mils for the Policemen's Pension and Relief Fund, 0.4 mils for the Firemen's Pension and Relief Fund, 3.7 mils for the Fayetteville Public Library, and 2.3 mils for 2022 General Fund operations. BACKGROUND: Each year the City must approve an ordinance to renew the levy of ad valorem taxes on real and personal property within the City. This request will provide for such levy on property assessed during 2021. As of August 3, 2021, the total assessed value of real and personal property located within the city limits of Fayetteville is approximately $1.89 billion. The assessed valuation comes before the Washington County Board of Equalization has made all changes to the County Assessors Abstract. Based on preliminary assessments, the growth in real property assessments is approximately 2.8%, as of now. This will likely decrease as the Washington County Board of Equalization has not finished making changes. DISCUSSION: A millage levy ordinance must be approved by City Council in order for the City to continue to collect property taxes for the Policemen's Pension and Relief Fund and the Firemen's Pension and Relief Fund. The millage levy for the Policemen's Pension and Relief Fund is 0.4 mils for real property and 0.4 mils for personal property. The millage levy for the Firemen's Pension and Relief Fund is 0.4 mils for real property and 0.4 mils for personal property, as was approved by referendum. A millage levy ordinance must be approved for the operation of the Fayetteville Public Library. One was approved by the voters on October 1, 2002 and was for 1.0 mil for real property and 1.0 mil for personal property. On August 9, 2016 the citizens of Fayetteville voted to increase the millage for the library. The referendum approved was for an increase of 1.5 mils for operations for a total of 2.5 mils for operations. Additionally, 1.2 mils was approved by the voters for the bond debt service for the library expansion. Mailing Address: 113 W. Mountain Street www.fayetteville-ar.gov Fayetteville, AR 72701 Total millage for 2021 will be 3.7 mils for the Fayetteville Public Library. The 1.20 mils will be removed when the bonds are retired. Finally, City staff is requesting that City Council approve a millage levy ordinance for General Fund operations in the amount of 2.3 mils for both real and personal property. The 2021 proposed property tax revenue amount based on the 2.3 mil levy is estimated to bring in $4,301,000 in General Fund revenue. Below is a proposed calendar of meetings during the months of September and October which can be used to discuss the millage levy. Tuesday, September 14 Agenda Session Tuesday, September 21 City Council Meeting Tuesday, September 28 Agenda Session Tuesday, October 5 City Council Meeting Tuesday, October 12 Agenda Session Tuesday, October 19 City Council Meeting BUDGET/STAFF IMPACT: The 0.4 mils Police and 0.4 mils Fire is needed to fund the Pension plans for both. The 2.5 mils is used to fund the operation and the 1.2 mils will be used for the bond debt service for the Fayetteville Public Library. The 2.3 mils will be used to fund General Fund operations. Attachments: The millage levy must be at Washington County in time to be included in their consolidated levy ordinance which will be approved at the November 18, 2021 Quorum Court meeting. The deadline for receipt of the City's levy by the County is October 31 each year. The City levy will be added to the levies by Washington County, the various school districts, improvement districts and other cities within the County when the Washington County Quorum Court adopts its millage levy for 2021. The administration is requesting the following millage amounts: 2.3 mils for General Fund Operations 2.5 mils for the Fayetteville Public Library Operations 1.2 mils for the Fayetteville Public Library Expansion 0.4 mils for the Police Pension Fund 0.4 mils for the Fire Pension Fund If you have any questions concerning this agenda request, please contact Paul Becker at 575-8330. September 14, 2021 Iva CITY OF FAYETTEVILLE ARKANSAS 2022 Revenue Outlook Combined General Fund Sales Tax — 5 Year Overview $35,000,000 $25,000,000 $15,000,000 $10,000,000 $5,000,000 $0 $34.048.118 $34,730,000 2018 2019 2020 2021 2022 ❑ Budget ■ Actual Projection 2022 Proposed General Fund Budget — Revenue Highlights Sales Tax Revenue Franchise Fees Property Tax Revenue Court Fees & Fines State General Turnback Pension Insurance Turnback Building Permits Alcohol Taxes & Licenses Transfer from CARES Act All Other Revenue Tota Actual Adopted Budgeted Change Between - �� $ 31,256,914 $ 29,580,000 $ 34,730,000 $ 5,150,000 17.4% $ 6,238,326 $ 5,944,000 $ 6,330,000 386,000 6.5% $ 3,697,346 $ 4,204,000 $ 4,473,000 269,000 6.4% $ 8951380 $ 1,139,000 $ 8081000 (331,000) -29.1% $ 1,077,433 $ 883,000 $ 1,150,000 267,000 30.2% $ 1,746,187 $ 1,747,000 $ 1,781,000 34,000 1.9% $ 1,418,354 $ 1,605,000 $ 1,605,000 - 0.0% $ 732,544 $ 795,000 $ 1,063,000 268,000 33.7% $ 2,915,062 $ - $ - - - $ 3,620,337 $ 3,256,000 $ 3,273,000 171000 0.5% $ 53,597,883 $ 49,153,000 $ 55,213,000 $ 6,060,000 12.3% Changes between 2020 Actual, 2021 Adopted, & 2022 Proposed Budgets • Sales taxes for 2021 are estimated to be 15% over budget and are expected to increase 2% in 2022. • Franchise fees are projected to be up 6.5% when compared to the 2021 budgeted amount based on estimated 2021 collections. • Property taxes for 2022 are projected to be up 6.4% compared to the 2021 budgeted amount. • Building permits are projected to be flat compared to the 2021 budgeted amount based on estimated 2021 collections. 0 All other revenues are projected to be up 0.5% compared to the 2021 budgeted amount. 2022 General Fund Expenditure Summary Changes 2021 General Fund Budget - Adopted $ 49,545,000 Between Additions: Adopted 2021 Personnel & Personnel Benefits 4,353,884 & Proposed 2022 Professional/Contract Services 3651275 Utilities & Telephone 165,639 Expenses Motorpool 1341297 Software Maintenance/Lease 130,753 Materials & Supplies 108,150 Services & Charges 85,090 Uniforms/Personal Equipment 70,284 Election 60,000 Building & Grounds Maintenance 481906 Travel & Training 45,244 Minor Equipment 35,352 Outside Agencies 351082 Miscellaneous 15,000 Insurance - Vehicles & Property 10,600 Equipment Maintenance/Fixed Assets 4,444 5,668,000 2022 General Fund Budget - Proposed $ 55,213,000 2022 General Fund Position Recommendations Fund / Division Title FTE 2022 FTE Adjustments City Clerk/Treasurer Document Management Manager (0.50) City Clerk/Treasurer Records Clerk (0.50) City Clerk/Treasurer Customer and Info Records Spec - Doc Mgmt 1.00 Chief of Staff Director of Arts and Culture 1.00 Facilities Management Custodian 1.00 Police Police Officer - Patrol 2.00 Police Police Officer - Trails 2.00 Central Dispatch Dispatcher 1 1.00 Fire Administrative Assistant - Fire Marshal 1.00 Fire Firefighter 3.00 Parks & Recreation Maintenance Worker III - Trails Soft Surface 1.00 Parks & Recreation Maintenance Worker IV - Trails Soft Surface 1.00 Parks & Recreation Recreation Programs Assistant 0.70 Parks & Recreation Recreation Programs Assistant II - YRCC 0.60 Engineering Public Works Project Inspector 1.00 Building Safety Residential Plan Reviewer 1.00 16.30 2022 FTE Recommended 838.40 2022 Proposed General Fund Budget Budget by Activity 17-- Budget by Activity General Government Activity $ 51031,705 10.1% $ 51595,841 10.1% - Outside Agencies 1/271/032 2.6% 1/306/114 2.4% - Salary Contingency 2541777 0.5% 481,572 0.9% - Fayetteville Public Library 11706,178 3.4% 11706,178 3.1% - Cost Reimbursements (21695,542) -5.4% (2,695,542) -4.9% Finance & Internal Services Activity 61459,920 13.0% 7/032/064 12.7% Police Activity 16,682,538 33.7% 18,933,166 34.3% Fire Activity 13,244,674 26.7% 14,336,248 26.0% Community Planning & Engineering 4/851/496 9.8% 5/349/868 9.7% Parks and Recreation Activity 21505,222 5.1% 21934,491 5.3% Transfer to Drug Grant 233,000 0.5% 233,000 0.4% Total $ 49,545,000 100.0% $ 55,213,000 100.0% 2022 Proposed General Fund Budget Summary by Category (% of Total) Personnel Services Materials and Supplies Services and Charges Motorpool Charges Cost Allocation Maintenance Debt Service Transfers To Outside Entities Capital Operating Transfers $ 39,619,285 1,056,905 4,125,321 11542,552 (2,705,979) 1,345,383 2751188 2,867,608 24,943 11169,109 $ 40,437,886 $ 44,791,770 $ 41353,884 81.2% 11287, 649 1/457/151 169,502 2.6 % 41410,223 51293,971 883,748 9.6% 11442,066 11576,363 1341297 2.9% (21705,222) (2,705,222) - -4.9% 1/468/965 11558,883 891918 2.8% - - - 0.0% 21948,433 2,983,515 35,082 5.4% 221000 231569 1,569 0.0% 233,000 233,000 - 0.4% Total $ 49,320,315 $ 49,545,000 $ 55,213,000 $ 51668,000 100.0% 2022 Proposed General Fund Budget Outside Agencies and Other Entities Outside Agencies (Non -Profit Services): Boys & Girls Club Community Access TV (Your Media) AAANWA (Senior Center) Arkansas Air/Military Museum 7 Hills Homeless Shelter 2251000 17.7% 2251000 17.2% $ - 0.0% 2051095 16.1% 1981500 15.2% (6,595) -3.2% 1091080 8.6% 1231524 9.5% 141444 13.2% 26,000 2.0% 25,200 1.9% (800) -3.1% 113,400 8.9% 113,400 8.7% - 0.0% $ 678,575 53.4% $ 685,624 52.5% $ 7,049 1.0% Outside Entities (Local Governmental Agreements): Central EMS 540,951 NWA Regional Planning* 51,506 42.6% 5541726 4.1% 65,764 42.5% $ 13,775 2.5% 5.0% 14,258 27.7% $ 592,457 46.6% $ 620.1490 47.5% $ 28,033 4.7% Total $ *Allocation per capita based on new census 1/271/032 100.0% $ 1,306,114 100.0% $ 351082 2.8% 2022 Financial Impact 2022 General Fund Operating Results Revenue I Expenses Unadjusted Deficit $ 55/213/000 5 551213,0000 ➢ Balanced budget before 2022 salary increases, which are estimated to be approximately $1.2M. Estimated 2022 -General Fund Balance (If Budget Projections are Met) Beginning Unrestricted Fund Balance - 1/1/2021 $ Less: Unfunded Re -appropriations Less: Estimated Deficit 2021 Estimated Balance - 12/31/2021 Less: 60 Day Reserve Adjusted Balance - 12/31/2021 23,0001000 (21000,000) (175,000) $ 20,825,000 (91000,000) $ 11,825,000 Less: Budgeted Deficit 2022 - Personnel Services As a Portion of Total Revenue General Fund Revenue vs. Personnel Services Expenses $60.0 $50.0 $40.0 $30.0 0 $20.0 $10.0 $0.0 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Budget Budget -Revenue $37.09 $37.38 $42.19 $41.20 $44.25 $45.60 $51.64 $48.80 $53.60 $49.61 $55.21 -Personnel $28.06 $29.89 $30.78 $32.18 $33.73 $35.28 $37.75 $39.72 $39.62 $40.44 $44.79 Difference $9.03 $7.49 $11.41 $9.02 $10.52 $10.32 $13.89 $9.08 $13.98 $9.17 $10.42 General Fund Personnel Services Expenses vs. General Fund Sales Tax Revenue $45.0 $40.0 $35.0 $30.0 $25.0 c $20.0 $15.0 $10.0 $5.0 $0.0 2012 -Personnel $28.06 -Sales Tax $20.72 Difference $7.34 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Budget Budget $29.89 $30.78 $32.18 $33.73 $35.28 $37.75 $39.72 $39.62 $40.44 $44.79 $21.84 $23.24 $24.92 $26.08 $27.21 $28.64 $29.34 $31.26 $29.58 $34.73 $8.05 $7.54 $7.26 $7.65 $8.07 $9.11 $10.38 $8.36 $10.86 $10.06 ■ *City Millage Levy dk Annual Tax Paid by Homeowner ($200,000)** Police/Fire Fire School Total City Sales Tax City General Pension Library Voluntary Total County District Total Portion Total Rate Bentonville 5.00 0.50 0.00 0.00 5.50 9.70 48.50 63.70 $220 $2,548 2% Fayetteville 2.30 0.80 3.70 0.00 6.80 5.50 45.65 57.95 $272 $2,318 2% Rogers 2.40 0.00 0.90 0.00 3.30 9.70 41.90 54.90 $132 $2,196 2% Springdale 4.70 1.00 1.00 1.50 8.20 6.50 40.50 55.20 $328 $2,208 2% Fort Smith 5.00 2.00 1.00 0.00 8.00 8.50 42.06 58.56 $320 $2,342 2% * Source: State of Arkansas - Assessment Coordination Department: 2020 Millage Report (2021 Collections) / Published June 2021 ** Appraised Value NORTHWEST ARKANSAS ]Demi= nQtte P.C. 2CX 1t.07, FAYETTEVILLE, AR. 72702. 479.442-1700 - FAX-179-695-1119 • WWW-NWADG.com AFFIDAVIT OF PUBLICATION I, Brittany Smith, do solemnly swear that I am the Accounting Legal Clerk of the Northwest Arkansas Democrat -Gazette, a daily newspaper printed and published in said County, State of Arkansas; that I was so related to this publication at and during the publication of the annexed legal advertisement the matter of Notice pending in the Court, in said County, and at the dates of the several publications of said advertisement stated below, and that during said periods and at said dates, said newspaper was printed and had a bona fide circulation in said County; that said newspaper had been regularly printed and published in said County, and had a bona fide circulation therein for the period of one month before the date of the first publication of said advertisement; and that said advertisement was published in the regular daily issues of said newspaper as stated below. City of Fayetteville Ord 6487 Was inserted in the Regular Edition on: October 31, 2021 Publication Charges: $141.36 & ' Brittany Smith Subscribed and sworn to before me This % day of Nth , 2021. ISO - 0&a 1� Notary Public My Commission Expires: * *NOTE* * Please do not pay from Affidavit. Invoice will be sent. Cathy Wiles Benton COUNTY NOTARY PUBLIC -ARKANSAS My Commission Expires 02-20-2024 Commission No. 12397118 Ordinance: 6487 File Number: 2021-0685 2021 MILLAGE LEVY: AN ORDINANCE LEVYING A TAX ON THE REAL AND PERSONAL PROPERTY WITHIN THE CITY OF FAYETTEVILLE, ARKANSAS, FOR THE YEAR 2021 FIXING THE RATE THEREOF AT 2.3 MILLS FOR GENERAL FUND OPERATIONS, 0.4 MILLS FOR THE FIREMEN'S PENSION AND RELIEF FUND, 0.4 MILLS FOR THE POLICEMEN'S PENSION AND RELIEF FUND, 2.5 MILLS FOR FAYETTEVILLE PUBLIC LIBRARY OPERATIONS AND 1.2 MILLS FOR THE FAYETTEVILLE PUBLIC LIBRARY EXPANSION; AND CERTIFYING THE SAME TO THE COUNTY CLERK OF WASHINGTON COUNTY,ARKANSAS BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1: That a tax is hereby levied on the real and personal property within the City of Fayetteville, Arkansas, for the year 2021 to be collected in 2022 for the following purposes at the following rates: REAL AND PERSONAL PROPERTY Purpose Levy General Fund - Operations 2.3 mills Fayetteville Public Library - Operations 2.5 mills Fayetteville Public Library - Expansion 1.2 mills Policemen's Pension and Relief Fund 0.4 mills Firemen's Pension and Relief Fund 0.4 mills TOTAL 6.8 mills Section 2: That the real and personal property tax so levied and the rates provided therefor are hereby certified to the County Clerk of Washington County, Arkansas, to be placed in the tax book and collected in the some manner that the county and school district taxes are collected. Section 3: The City Clerk is hereby authorized and directed to file a certified copy of this Ordinance in the Office of the County Clerk for Washington County, Arkansas. PASSED and APPROVED on 1075l2021 Jordan, Mayor Kara Paxton, City Clerk Treasurer Paid for by: The City Clerk -Treasurer the City of Fayetteville, Arkansas. Amount paid: $141.36 75484389 Oct 31, 2021