Wednesday, August 28, 2002
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Wednesday, August 28, 2002 |
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PTC's financial crisis is bigger than 9% tax hike The recent front page headline, "9% tax hike eyed for PTC," [The Citizen, Aug. 14] down-played the financial crisis facing Peachtree City. It only addressed the proposed millage increase and only addressed fiscal year 2003. State law requires government bodies to report changes in property (assessed) value as changes in the property (ad valorem) tax rate. Property values must be reassessed once every three years but may and in fact usually are reassessed each year. This smooths the increases and avoids the very large jumps that would otherwise occur. If a city or county does not decrease the millage rate an amount equal to the increase in assessed value it must be reported as a tax increase. The 9 percent increase reported in your headline reflects only the millage increase and totally ignores the estimated 6-7 percent increase in assessed value. These figures amount to a tax increase for next year of 16 percent, not 9 percent. Having said all that, the more important aspect of the budget situation in Peachtree City was completely ignored in the article. Peachtree City is in the midst of a major financial crisis. Plans presented to the council at the Aug. 15 meeting show millage rate increases for the next four years. The cumulative increase combined with anticipated increases in assessed value totals 95 percent, nearly doubling the current tax. This is not a statement from some political faction. These are the facts presented to the Peachtree City Council. What is more troubling is the fact that a 95 percent increase does not cover all the expenditures already anticipated. It does not cover any of the mayor and Council's pet projects. It does not restore the projects in the PIP (Public Improvement Plan) that were just cut from next year's budget. The council wants you to believe that our financial woes are caused by last year's terrorist hijackings and beyond anyone's control. In the past year, every bit of bad news has been tied directly or otherwise to the terrorist hijackings. This claim is no different than all the rest, a partial truth. Spending $850,000 for five acres of commercial property to make a park is part of the problem. Overspending the council expense account, spending tens of thousands on speed humps and rumble strips, spending thousands on legal fees with a building moratorium and more recently on the battle with the development and airport authorities, and paying special council $150 per hour to sit through hours of unrelated teen golf cart driving rules are all part of the problem. Peachtree City's financial situation is exacerbated by the lack of new industry moving to the industrial park. While the economy takes part of the blame for changes in the business community, the actions of the mayor and Council have shut off any interest in corporate relocations. The illegal building moratorium shut down inquiries and the subsequent actions of the mayor have created an atmosphere of uncertainty. No large business will relocate to a community that is in such disarray. The recent loss of the director of developmental services, the attacks on the development authority, the resignation of the city attorney and now the failure to renew the contract of the city manager without providing for a replacement have turned a community known for excellence in corporate relations into a chaotic quixotic nightmare. Peachtree City's financial crisis is not insurmountable but it will require the efforts and trust of the entire community to resolve, trust that is sorely lacking. Gary Rower Peachtree City
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