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PTC faces big shortfall without SPLOSTFri, 11/13/2009 - 4:44pm
By: John Munford
Property tax hike, budget cuts likely to avoid $2.7M shortage Since Fayette residents voted down a new 1 percent sales tax, Peachtree City faces some difficult budget decisions. The city got between $1.5 to $2 million a year from the tax, which will expire in April after a five-year run. Much of the funds were used for resurfacing of roads and cart paths, along with other infrastructure projects including bridges, tunnels, intersection improvements and road improvements. Without that funding, Peachtree City may get more choosy about how it spends the remainder of its SPLOST funds. While the city will look at further budget cuts, it also may face an “inevitable” property tax increase to avoid a huge use of cash reserves, according to Finance Director Paul Salvatore. Without the SPLOST, the city is facing a projected $2.7 million shortfall in the 2011 budget. Any such budget decisions likely will be left up to the new city council that takes office in January, as staff has not yet been directed to come up with recommendations on the matter. The city is not projecting any shortfalls in the 2010 budget due to the SPLOST, but it’s the 2011 budget, which will be formed by the new council, that will see the first significant impact from the loss of SPLOST funds. “We will have to get real creative to avoid significant millage rate increases and not devastate our existing service and cash reserve levels,” Salvatore said. While the city might decide to cut its resurfacing program, “everything needs to be evaluated,” Salvatore said. One possibility is taking scrutiny of the remaining SPLOST projects on tap and prioritize them according to the remaining funds, Salvatore said. It’s also possible that with five years of resurfacing for paths and streets under the SPLOST that the city may have improved the situation to where it could drastically cut the resurfacing program for a year. The city annually “grades” the status of street surfaces to help calculate which are in most need of resurfacing, a process that would aid in such a decision. Salvatore cautioned that the city will need to continue to take care of any road or path sections that may pose a safety issue. login to post comments |