By JOHN MUNFORD
jmunford@TheCitizenNews.com

Submitting a budget 11.8 percent larger than last year's, Peachtree City officials are expecting to make up the difference with increased property taxes, a city news release said Monday.

The extra funds would come from taxable property values that were increased in the latest round of reassessments. The city doesn't plan to increase the millage rate; instead the rate would remain at 4.06 mills, according to Betsy Tyler, public information officer for the city.

City staff is expecting an increase in ad valorem property tax collections by 8.6 percent, compared to last year, Tyler said. That figure would equal an additional $263,506 in revenue for the city, she said.

Ellen Mills, the chief tax appraiser for Fayette County, said reassessments in Peachtree City increased property values by $162.25 million.

Peachtree City's $12.89 million budget includes a recommendation for $493,877 in raises from the city's salary study. The pay plan was the main reason given for the budget increase, along with the addition of three new firefighters to cover shifts no longer covered by volunteers.

Three public hearings have been scheduled to allow citizen input on the proposed property tax increase: Wednesday, Sept. 20 at 7 p.m. (which coincides with the next City Council meeting), Wednesday Sept. 27 at 6:30 p.m. and Thursday, Oct. 5 at 7 p.m.

Fayette County Tax Commissioner George Wingo said Peachtree City's estimate “sounds dead-on” with the estimated increase in property values in Peachtree City. Preliminary figures indicate the reassessments increased property values by over 8 percent in Peachtree City, Wingo said.

Wingo added that the figures haven't been finalized and the county's tax digest hasn't been approved by the state.

At last week's council meeting, Councilman Robert Brooks suggested that council consider rolling back the millage rate on ad valorem taxes to lessen the burden on the individual taxpayers. He suggested that the difference could be taken from the city's cash reserve.

“When you look at the council contingency fund and the cash reserve fund, you have $2.4 million,” Brooks said.

City Manager Jim Basinger said he didn't want to deplete the reserve because the city tries to keep 90 days worth of cash on hand for emergencies.

Mayor Bob Lenox said Brooks' rollback idea should be discussed.

Ad valorem taxes account for 27 percent of the city's proposed budget, eclipsed only by local option sales tax money, which funds 35 percent of the budget.

The budget's current version calls for 12 new full-time employees: six firefighter/paramedics and a secretary for the fire and rescue department, a police captain, two recreation maintenance workers, a youth services librarian and a maintenance worker for the public service department. A part-time secretary also is listed for the city's developmental services division.

In his notes on the budget to council, Basinger indicated that next year's budget will need to be adjusted since the pay plan and new positions will be on-going expenses.

“Such adjustments will most likely include an examination of how we evaluate and fund our capital projects in the PIP (Public Improvement Program),” Basinger wrote. “In addition, a complete revenue survey should be performed to identify potential revenue enhancements, and we must continue to maintain our quality improvement to identify opportunities for cost savings.”