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PTC set to keep reserve, but raise property taxTue, 08/25/2009 - 4:05pm
By: John Munford
Last call! That is, if you want to have a say on the proposed .244 millage rate increase proposed by the Peachtree City Council. Council will meet Thursday night at 6:30 p.m. to hold the final of three public hearings on the property tax increase. After the hearing, council is expected to formally adopt the increase. The increase would cost an additional $24.40 on the property tax bill of a home valued at $250,000. Council can vote to reduce or eliminate the increase if it chose to, but such a vote seems unlikely. Mayor Harold Logsdon has said he would rather see the city make up the $451,000 difference from the city’s cash reserves, which are currently at $9.4 million, representing 36 percent of the city’s annual expenditures. The city’s agreed-upon target for cash reserves is 20 percent. City Finance Director Paul Salvatore has warned that continually dipping into its cash reserves could have a negative impact on the city’s bond rating. The millage rate would cover a 2009-2010 city budget that includes no pay merit or cost of living raises for city employees. Councilman Don Haddix said he wants to restore the cost of living raises which would cost $270,000. With the struggling economy, Peachtree City has been the hardest-hit jurisdiction in Fayette County. The decrease in local spending has led to lower sales tax revenues, and to compensate, Peachtree City has laid off 24 employees this year, most of whom were employed as landscapers. The landscapers were replaced by a private company that doesn’t mow as often as city crews formerly did, leading to some citizen complaints about unmowed grass. The 2009-2010 budget includes room to hire one police detective, one patrol officer and six firefighters, the latter of which will cost the city just over $50,000 this year, thanks to a federal grant. To cover the cost of the firefighters, the fire department has made cuts in its budget, including dive team and water rescue equipment, firefighting foam, station cleaning supplies and more. Also the department is diverting money from professional services including funds for drug screening, medical physicals and vaccines in addition to foregoing several training conferences. Over the five-year life of the grant, the city will have to pick up more than $1 million for the firefighters’ salaries, adding to future city budget levels. login to post comments |