With local consumer spending on the skids, city takes hit in sales taxes, other collections

Reacting to reduced revenue estimates due to the downturn in the economy Peachtree City staff is suggesting cuts to departmental budgets of more than $886,000, along with a host of project cuts.

The Peachtree City Council was scheduled to be presented with a list of the proposed budget cuts Tuesday night after The Citizen went to press.

The cuts were proposed to address an anticipated $912,000 revenue shortfall this budget year due to the downturn in the economy.

Included in the cuts are $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:

• Three cart path projects that would have extended the path from Robinson Road along Ga. Highway 54 east towards the Peachtree Crossings East shopping center. Savings: $125,000.

• Improvements to the Battery Way boat docks. Savings: $148,875. This money is being transferred to pay for repairs at the police headquarters.

• A landscaping project for Ga. Highway 54 East. Savings: $33,568.

• Purchasing of a firearms simulator for police training. The city had planned to finance the project. Savings: $34,646.

• Purchasing a wireless fingerprinting system for the police department. Savings: $60,000.

Items of note among the detailed department budget cuts are:

• $8,500 that was budgeted for new laptops for the City Council;

• $25,500 by reducing the printed update newsletter to six times a year;

• $10,500 in overtime pay for police officers including compensation for appearing in court;

• $15,000 in overtime for public services employees;

• $12,000 for GPS units in fire department vehicles;

• $4,000 for washing police cars;

• $6,341 in police uniforms;

• $6,500 for wellness equipment for the fire department;

• $4,500 in training and education for the finance department;

• $5,000 in drafting services for the planning department;

• $20,726 from the library by reducing operating hours on Sundays;

• $15,866 by reducing the operating hours of the Kedron recreation facility on Saturdays and Sundays;

• $35,000 by closing the Clover Reach pool; and

• Over $240,000 from the recreation department, including the repair and replacement of fencing at sports fields, resurfacing of tennis and basketball courts, canceling non-local training sessions and reducing the scope of the planned 50th anniversary fireworks.

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 remainder of the funds represents the money the city had set aside to match the grant from the state, which has been put on hold indefinitely.

All that’s left to make the bridge functional is to pave the path connections leading to the bridge.