Wednesday, October 10, 2001
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Wednesday, October 10, 2001 |
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PTC: Budget cuts ahead By JOHN MUNFORD
Peachtree City's cash reserves, a focal point of this year's budgeting process, may be needed to help balance this year's budget, too. With the stumbling economy predicted to shrink the city's sales tax revenues, Peachtree City staff will take yet another look at the recently adopted budget for more cuts. As the issue was discussed at Thursday night's council meeting, City Manager Jim Basinger said spending cuts could come from the public improvement program and the cash reserve fund. City staff will look at plans for cuts to equal a 5 to 20 percent shortfall in sales tax revenues, which accounts for just over half of the city's budget. But if the sales tax money shrinks by 20 percent, that only represents 8 percent of the city's budget, noted Mayor Bob Lenox. The cash reserve was used to balance the budget last year, causing a $1.4 million reduction largely due to a package giving employee raises. Doing so allowed council to postpone a property tax rate increase for one year, further adding to the city's financial crunch this year. Councilman Dan Tennant suggested the city stave off a property tax increase with a 10 percent across the board cut in departmental budgets, excluding public safety. But other council members indicated they didn't want to reduce the level of service the city is providing. Tennant admitted such a move might lead to reducing the city's staff levels. Lenox said he felt a 10 percent cut would be extreme. He added that he doesn't expect the downswing in the economy to last long. Councilwoman Annie McMenamin, who brought up the matter, suggested that cuts could also be made in the city's planned equipment purchases. She also noted that Basinger has directed that only essential department purchases be made until the full impact of the economic slowdown on this year's budget can be assessed. Council voted 3-2 to adopt a tax rate of 4.315 mills, up from 3.84 the previous two years. Tennant and Councilman Steve Rapson voted against it. Rapson previously said he would vote against the budget because he doesn't agree property taxes need to be increased. The increase will cost approximately $40 a year for homeowners with homes valued at $200,000; Lenox noted that persons owning such homes paid $28 a month for city services through property taxes, which is less than residents pay for cable TV, cellular phones and automobile insurance, he added.
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