Wednesday, April 9, 2003
|
Wednesday, April 9, 2003 |
|
PTC grapples with plunging tax revenues By J. FRANK LYNCH
A stupefied Georgia House of Representatives gave approval to a more than $16 billion budget on Monday and sent it back to the Senate, even though it lacks millions in funds to pay for it. The hope is that between additional Senate cuts and a reconsidered increase in the tobacco tax, a balanced spending plan can be reached. Tuesday was the 33rd day of the 40-day session, and the last day legislation could be introduced in either chamber. No matter where the budget ends up, Peachtree City will still go without $250,000 in greenspace funds, money the city is obligated to match to pay in full the final $500,000 due on the Meade Field property. So now city financial services director Paul Salvatore is faced with the task of coming up with a quarter million more for next year, while maintaining current services at or close to current spending on top of increasing revenue streams, and without raising property taxes. Oh, and did we say the city was already in the red for this year? While there is no reason to panic, Mayor Steve Brown said the city is drawing less revenue than budgeted in the county sales tax collections formula, to the tune of about $150,000 so far this year. It was especially painful in March, when the state check for December sales tax arrived with an amount much less than expected, proof of the soft holiday shopping market. And while shoppers may think they are getting a break when the next statewide sales tax holiday rolls around, Brown and Salvatore watch millions in potential, statewide revenue evaporate. Peachtree City's fiscal year budget of $28 million runs from Oct. 1 to Sept. 31, and Salvatore is just starting the initial steps in writing a new budget for 2004 one he says will look a lot like the 2003 plan. This is a unique time to be managing Peachtree City's money, he said. "We're getting hit in different directions," Salvatore said. As the city reaches "build out" such onetime dependable revenue sources, like impact fees paid by builders, have suddenly dried up.
|
||