Friday, May 24, 2002
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Friday, May 24, 2002 |
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PTC Council shrinks cash reserve to hold off future millage increases By JOHN
MUNFORD
Hoping to keep Peachtree City's millage rate stable in future years, the City Council has shrunk its cash reserve goal. Cutting the goal by approximately 10 percent won't hurt the city's bond rating, said finance director Paul Salvatore. "Rating agencies would say they're happy you have a cash reserve policy on the books," Salvatore said. Originally, council had set a goal of building up a $5.16 million reserve, but with its action last week that number has shrunk to $3.62 million. The target date to reach that reserve point is Oct. 1, 2004, which marks the beginning of that fiscal year. "This will effectively keep our millage rate the same" in 2004 and 2005, said Councilman Steve Rapson, who spearheaded the changes. The catch is that the city uses the reserve funds from time to time for cash flow purposes so the entire reserve fund is not available all the time, Salvatore explained. Other changes to the city's budgetary policies included eliminating the council contingency line item, which amounted to 2.5 percent of the operating revenues for the entire year, and shrinking the self-insurance reserve fund and the public improvement program contingency fund.
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