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PTC to consider big budget cuts Tues.Mon, 12/01/2008 - 1:58pm
By: The Citizen
Sales tax, other revenues fall along with poor economy Tuesday night the Peachtree City Council will be presented with a list of proposed budget cuts to address an anticipated $912,000 revenue shortfall this budget year due to the downturn in the economy. Included in the cuts are $886,000 trimmed from departmental budgets and $450,000 in funds previously tabbed for improvement projects. Also recommended is a postponement of purchasing items that would have been funded by debt service, resulting in a $360,000 savings. Included in the proposed project cuts are: Most of the shortfall is chalked up to the local option sales tax revenues, which are projected to come up $700,000 short of initial estimates. Franchise taxes are projected to be down $74,000 and the motor vehicle taxes are expected to fall $50,000. Measures are also being proposed to address an additional shortfall of $350,000 in impact fees due to development projects that have been put on hold, officials said. That shortfall will be covered by leftover contingency funds that remained for projects funded in previous years to the tune of $333,000. Officials are also seeking a transfer of $159,000 from the current project contingency fund to the general fund to help with the shortfall. Some projects that would have been funded by the transportation Special Purpose Local Option Sales Tax may also be shelved with a projected shortfall in that account of $200,000. Without the cuts, the city would need to increase its use of cash reserves to $2.5 million, about 25 percent of the city’s total general fund reserves, which might hurt the city’s bond ratings, officials said. Also, if no cuts are made, a projected tax increase equivalent to two mills would be needed for next year, officials said. City officials have found funds to proceed with the Ga. Highway 54 west cart path bridge that spans the CSX railroad. Much of the $247,000 set aside for the project is covered by $193,000 of the $200,000 leftover when Fayette County refunded the city’s outlay for construction of the TDK Boulevard Extension, a project that was ultimately canceled. The funding increase for the bridge is necessary because state funding to pay for its completion has been put on hold. All that’s left is to pave the connections to the bridge to make it functional. login to post comments |