Friday, July 30, 1999
Friday, July 30, 1999 |
By
MONROE ROARK
Preliminary budget talks indicate a slight increase in the fiscal year 2000 operating budget for Peachtree City, but the millage should remain unchanged for the fourth consecutive year. City manager Jim Basinger noted in last week's City Council budget meeting that local option sales tax and ad valorem tax should be the city's chief source for the upcoming year, at 33 and 27 percent, respectively. The millage rate of 4.06 was reduced from 4.18 in 1995. It was as high as 4.50 in 1990 and 1991. An increase of 6.64 percent is expected in the operating budget over 1999, with ad valorem tax revenue expected to rise seven percent and sales tax three percent. Hotel/motel tax revenues, which are now being transferred to the Airport Authority and Development Authority on a monthly basis, will soon begin shifting more toward the general fund as those two bodies become more self-sufficient financially. The city will place slightly more than $60,000 of those funds into its general fund in 2000, should revenue projections hold up. Assistant city manager Joe Morton said that the FY2000 budget should see 84 cents of every dollar going toward services for city residents, as opposed to 16 cents earmarked for administrative costs. Councilman Robert Brooks said that he considers the proposed $850,000 contingency fund rather high, noting that it makes up four percent of the total budget. Basinger answered that some unforeseen expenses are to be expected, and citizens expect the work to be done when necessary. Mayor Pro Tempore Annie McMenamin added that bids for work are almost always higher than budgeted, to which Basinger added that prospective bidders check the city's budget to see what their parameters can be. An estimated $87,400 has been budgeted for changes in the retirement program for city employees. The current ten-year vesting period is being changed to five years, which many city officials believe will help keep good employees around much longer. The city will also match 50 percent of employees' contributions into the 457 matching deferred compensation program, up to four percent of an employee's salary. The City Council is expected to vote on the budget in September.
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