Peachtree City residents may get a $40 a year tax increase if the 2009-2010 budget is approved as recommended by City Manager Bernie McMullen.

Mayor Harold Logsdon insisted at Monday night’s budget workshop that a property tax increase be avoided, with the extra $474,000 be paid for from the city’s cash reserves. A city policy requires that it have at least 20 percent of its annual operating expenses as cash reserves and currently the reserves are up to 35 percent.

Logsdon argued in the tight economic times that the city should not ask taxpayers for an increase. But several citizens argued against his logic: saying they would rather take care of city employees.

City Fire Chief Ed Eiswerth noted that between the health care premium increase and other actions taken last year, city employees took an effective pay cut. He noted that his employees acknowledge times are tough so they understand the reason for eliminating raises from this year’s budget.

Despite the millage rate increase, the city is actually planning to spend $26.3 million in 2009-2010 as opposed to the projected final spending for this year of $26.59 million.

If a millage rate increase is not adopted this year, one will be needed next year to balance the budget, said City Finance Director Paul Salvatore. Councilwoman Cyndi Plunkett noted that while the council has hired 20 new public safety employees in the past three years, the city has not raised property taxes to pay for those employees.

McMullen is proposing to hire an additional police detective as its only new employee this year. But Plunkett said after spending some time with local police she is of the mind they need at least one other patrol officer.

Police Chief H.C. “Skip” Clark had asked for seven patrol officers and two detectives. Eiswerth planned to ask the council for six additional firefighters but declined after learning none were likely to be approved.

As a budget-saving measure, the police department has reduced its new patrol car request from eight to six. To replace the other two patrol cars, the city will enter a two-year lease on two motorcycles to be used for patrol, Clark said.

Among other budget cuts is a significant change at the city’s Frederick Brown Jr. Amphitheater. The summer concert series is being cut from two nights per artist to one, and the venue’s two employees will work 25 percent of their time on various tasks for the city, as 25 percent of their salary will come from the city’s general fund instead of the amphitheater budget.

The city has also pared $100,000 in costs from the Kedron Fieldhouse and Aquatic Center while implementing an estimated $200,000 in additional revenue for the facility, reducing the budget burden by $300,000 total, officials said. In doing so the city will let go one full-time and three part-time employees there.

The recommended city budget includes a .244 millage rate increase, which equals roughly $40 a year on a home with a fair market value of $250,000. However the city’s total spending will be slightly below the current spending projected for the remainder of this fiscal year, according to budget documents.

There are no funds in the budget for either merit or cost of living increases for employees. But should the economy improve via increased sales tax collections, one of the first goals should be to restore those raises, Logsdon said.

Also unfunded are the proposed raises for the mayor and council members that were to take effect this year.