Wednesday, January 23, 2002
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Wednesday, January 23, 2002 |
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PTC hikes hotel-motel tax; seeks solutions to shortfall By JOHN
MUNFORD
With Peachtree City's hotel-motel tax revenues continuing to suffer from economic doldrums, city officials are worried about how to make up for a shortfall that could reach upwards of $200,000 by year's end. To stem the losses, the Peachtree City Council voted to raise the hotel-motel tax rate from 5 to 6 percent at its regular meeting Thursday night. Council will meet with the Development Authority and the Airport Authority tonight at 7 p.m. in a workshop at City Hall to address possible solutions to the deficit. Some significant budgetary cuts may be in order for the city's airport, tennis center and amphitheater, all of which rely on hotel-motel tax funds for their operating budgets. Mayor Steve Brown has indicated he even wants the Development Authority to consider postponing the expansion of the tennis center, which will add six covered courts and a separate clubhouse/locker room facility complete with a snack bar. The City Council will meet with the Development Authority and the Airport Authority tonight at 7 p.m. in a workshop at City Hall to address possible solutions to the deficit. At last week's council meeting, city Finance Director Paul Salvatore said increasing the hotel-motel tax to the maximum 6 percent could result in a shortfall between $98,000 and $181,000, depending on how the hotel-motel industry fares the remaining nine months of the budget year. Tate Godfrey, treasurer of the Development Authority, and Catherine Nelmes, chairman of the Airport Authority, said both groups would work with council to find solutions to the projected shortage of funds. Mayor Steve Brown indicated that the city would have to "eat" some of the shortfall, but he wanted to see both authorities willing to make some cuts in their budgets also. Godfrey said putting off the tennis center expansion could pose problems since council raised the hotel-motel tax from 3 to 5 percent last year specifically to fund the expansion. "If the Development Authority can come up with something outside the box, I'd like to hear it," said councilman Murray Weed. Brown said he was concerned about rumblings he heard about the hospitality business suffering throughout the state. "We've really got to do something very, very quickly," Brown said. "There are going to be some hard decisions to make."
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