Friday, July 19, 2002
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Friday, July 19, 2002 |
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PTC Council cuts over $1.3 million in projects from 2003 budget; tax hike may still be in the works By JOHN
MUNFORD
In a lengthy budget meeting Monday night, the Peachtree City Council pared down a potential $1.375 budget increase for 2003 down to $181,000 by cutting a number of public improvement projects. But council members are considering a possible raise in the millage instead of hiking it up significantly next year particularly because they may not be able to make similar cuts in next year's budget. "We'll still be having these problems next year because they are recurring expenses," said city finance director Paul Salvatore. He said it is unlikely council will be able to cut $1.5 million from next year's public improvement plan, which is where most of the cuts were made from the upcoming 2003 budget. The cuts included the expansion of the Gathering Place ($104,000), paving a parking lot at the Meade softball fields ($250,000) and building restrooms and a concession area at the Kedron multi-purpose rink ($150,000). Also, council scaled down several projects including its street resurfacing program, cart path resurfacing program and improvements to the intersection of Huddleston Road and Dividend Drive. The lion's share of the $1.375 million budget hike was attributed to the increase of claims on the city's self insurance fund, which many pointed out that the council has no control over. The self insurance program was increased by $735,000 in the budget to hopefully cover even more claims which are anticipated for next year. The city is also soliciting bids for medical insurance, but officials aren't optimistic they will be able to save money by switching to such a program. The $180,000 increase for the 2003 budget is still on the books and Salvatore hopes to convince council not to take the funds out of the city's cash reserves to balance the budget and avoid a millage increase. "We need to build it up," Salvatore said of the cash reserve in an interview Thursday morning. "Right now we'd rather be building it up by $200,000 than taking $200,000 out." The reserve fund is estimated to be at $2.3 million after this fiscal year ends. Council is expected to hold another workshop on the matter before taking official action on the budget.
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