Wednesday, October 24, 2001
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Wednesday, October 24, 2001 |
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Tax woes: 10% of PTC budget frozen by Council By JOHN MUNFORD
Peachtree City Council has put 10 percent of its 2002 budget in a holding pattern, at the request of city staff. City officials are worried that an extended economic slowdown could reduce local option sales tax funds, which make up about a third of the city's budget. The worst-case scenario would have revenues declining by about $1.46 million, said Paul Salvatore the city's finance director. City Manager Jim Basinger said the spending freeze could be lifted later, and city staff would report back to council periodically on the matter. If it appears the economy will pick back up, the freeze could be lifted, Basinger said. The concerns don't just relate to the sales tax. Dips in the hotel-motel tax, the alcoholic beverage tax and the mixed drink tax also are projected by city officials. Councilman Steve Rapson said he thought impounding the funds was a good plan. The plan for handling the shortfall includes cutting and delaying construction projects and major equipment purchases along with an influx of $200,000 left over from revenues in the 2001 budget and up to $263,000 in funds from the city's cash reserves. City officials had hoped to build up the cash reserves this year after $1.4 million was used last year to balance the budget and hold off on a property tax increase. One of the most significant projects that could be cut or delayed is the expansion of the Gathering Place senior citizens' center. It would be one of the last cuts or delays made, but it would be one of the first items reactivated if the economy picks back up, according to city officials. Other delays or cuts could come for the recreation maintenance storage facility planned for the Kedron Fieldhouse, the expansion of the recreation maintenance building at the Hwy. 74 South complex, and adding a concession and restroom area to the new multipurpose rink at Kedron. Some playgrounds and a halfpipe skate ramp might also be cut, according to the city's plans. |