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Budget & Information Management

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1. What is the City's total budget?

The total 2023 Adopted City budget is $216,748,000 and was adopted at the November 15, 2022 City Council meeting.  State law requires municipalities’ budgets to be on a calendar year (January - December).

The total 2024 Adopted City budget is $241,677,000 and was adopted at the November 21, 2023 City Council meeting. State law requires municipalities’ budgets to be on a calendar year (January - December).

Annual Budget & Work Program Archives

2. What is a City budget?

One of the most important documents of any municipality is the annual city budget. It establishes how public funding will be spent and outlines the spending priorities for the future calendar year. Costs for everyday services such as trash pick-up, police patrol, fire response, water services, street repair and parks and recreation programs are itemized in the budget.

3. How is the City's budget developed?

The City’s fiscal year is the same as the calendar year and runs from January 1 through December 31. State law requires, under either mayoral or city manager form of government, that the annual proposed budget be presented to the City Council by December 1 of the current year, and requires that the City Council approve a budget by February 1 of the budget year. These requirements drive the deadlines and timelines for the operating budget process. View the budgeting process.

4. What are "funds" and why does the City have them?

The City receives revenues from many different sources. Most of them have restrictions on how they can be used. For example, money from the Federal Government (Community Development Block Grant or CDBG funds) must be used in low and moderate census track areas. Monies received through sewer fees must be used to operate and maintain the City’s sewer system. The General Fund is supported by taxes and fees and generally has no restrictions on their use.

5. What is the General Fund portion of the City's budget?

The total 2023 General Fund budget is $64,844,000. This fund is supported by taxes and fees.

The total 2024 General Fund budget is $73,353,000. This fund is supported by taxes and fees.

6. What is an Enterprise Fund?

An Enterprise Fund is a government facility or service that is self supporting through the fees associated with operating that particular service. The City currently has three Enterprise Funds (Water & Sewer Fund, Recycling & Trash Collection Fund and the Airport Fund).

7. What is the difference between a department, a division and a program in the City's budget?

Departments are the major organizational sub-divisions. They have a broad overall purpose. Divisions are the major operational areas of the City. Each division is assigned to one of the City’s departments according to the type of activity it performs. Programs are operating units within the division. Each program represents a specific type of activity within its division aimed at providing a service for which the City is responsible. For example, one program in the Transportation Division is Street Maintenance which resides in the Transportation Services Department. Based on staff’s assessment of costs and needs, the desires of citizens and the priorities of the City Council, the Transportation Division is budgeted a set amount of money to accomplish street maintenance.

8. What is a property tax? What is the City's current property tax rate for operations?

Property tax is computed from the assessed valuation of land and improvements on real property. The City’s current property tax rate for operations is 2.3 mils or $0.23 per $100 of assessed valuation. This tax is budgeted in the City’s General Fund.

9. How much does the average citizen pay based on the above tax rate?

Washington County has set the assessed value of a residential property at 20% of its fair market value. The City’s tax levy is taken times this assessed valuation. For example, an individual who owns a home with an actual value of $160,000 would pay the following to the City:

$160,000 x 20% = $32,000 assessed valuation
$32,000 divided by $100 = $320 x $0.23 = $73.60

10. What is the total sales tax rate in Fayetteville?

The total sales tax rate in Fayetteville is 9.75%.

Sales Tax Rates

11. What is the total number of City positions?

The total number of authorized full-time equivalent (FTE) positions in the City for 2023 is 905.00. Some positions are required to work less than the standard number of working hours and days; therefore, the total number of positions in the City may not be a whole number.

The total number of authorized full-time equivalent (FTE) positions in the City for 2024 is 925.70. Some positions are required to work less than the standard number of working hours and days; therefore, the total number of positions in the City may not be a whole number.

12. What is a full-time equivalent position (FTE)?

An FTE refers to one or more employees working 40 hours per week or 2,080 hours per year. For example, a part-time employee working 20 hours per week would be considered a 0.5 FTE.

13. What is the CIP (Capital Improvements Plan)?

The CIP examines the infrastructure and capital needs of the City for the next five years. The CIP may be reviewed and updated on an annual basis to reflect the changing needs of the community and changes in available monies for financing capital projects. The City’s philosophy concerning the use of the CIP is that it should be considered as a financial planning tool that lists the City’s capital improvements projects, places the projects in a priority order, and schedules the project for funding and implementation.

14. What is the difference between the capital budget and the operating budget?

The capital budget, or capital improvements plan, is an appropriation of bonds or operating revenue for improvements to city facilities that may include buildings, parks, streets, trails and water and sewer lines. The operating budget covers the costs of the City’s day-to-day operations, such as employee salaries, supplies, and contracts.

15. What are the responsibilities of the Budget & Information Management Division of the Finance & Internal Services Department?

The Budget & Information Management Division of the Finance & Internal Services Department is primarily responsible for the development and preparation of the City of Fayetteville’s annual operating budget and Capital Improvements Plan budget. In addition, staff provides analysis and recommendations regarding fiscal and operational issues to the Mayor’s Office, the City Council, and the City’s operating departments.

16. How do I get involved in the budget process?

The City Council holds public hearings on the City’s proposed budget during November and December.

City Council Agendas

17. What is the population of Fayetteville?

The population for Fayetteville, Arkansas is 93,949 based on 2020 U. S. Census data (as of April 1, 2020).

Research Information

18. What is the largest source of revenue for the City?

The largest source of revenue for the City is sales tax. The total amount of sales taxes budgeted for the 2023 budget year is $89.5 million (41.4% of the budget). Sales tax revenue primarily consists of City and County Sales Tax, Alcoholic Beverage Tax and the Hotel / Motel Restaurant (HMR) Tax.

The largest source of revenue for the City is sales tax. The total amount of sales taxes budgeted for the 2024 budget year is $102.4 million (42.4% of the budget). Sales tax revenue primarily consists of City and County Sales Tax, Alcoholic Beverage Tax and the Hotel / Motel Restaurant (HMR) Tax.

19. How do I get a copy of the city budget?

You may view the city budget online by selecting Budget & Information Management under the Department menu on the City of Fayetteville's website.

Annual Budget and Work Program Archives