Wednesday, August 8, 2001
|
Wednesday, August 8, 2001 |
| After cuts,
PTC Council still looking at likely tax increase
And JOHN MUNFORD
Even with a drastically trimmed budget, a tax increase will still be forthcoming for Peachtree City homeowners. At a special budget meeting Saturday morning, the City Council leaned toward increasing the property tax rate to 4.35 mills, up 12.6 percent from the current 3.84. That increase would cost an extra $40 a year for homes with a fair market value of $200,000. Councilwoman Annie McMenamin said holding off on a necessary millage increase "would look politically motivated" since three council seats, including the mayor's position, are up for reelection in November. No official vote on the budget was recorded; the matter will be discussed at the Aug. 16 council meeting. Last month, city staff proposed increasing the millage to 4.75, a 24 percent hike. But at Saturday's meeting, a pared-down budget was presented with a recommendation to increase the millage to 4.06, where it was last year before council rolled it back to 3.84 to avoid a property tax increase. That recommendation, however, only postponed the proposed 24 percent millage increase by one year, according to city projections. The city hasn't had a millage increase since the mid-1980s when it was raised from 4.5 mills to six mills. Since then, it has declined; the 4.06 millage rate was held for four straight years until last year's rollback. The latest version of the 2002 budget cut the four employees requested by city staff: a full-time Emergency Medical Services lieutenant, a full-time mechanic for the Public Works Department, a part-time building technician and a part-time fieldhouse leader at for the Kedron Fieldhouse. "It's a tight budget," said finance director Paul Salvatore. "There's not a lot of fluff in there." After hearing from department heads, council members agreed the EMS lieutenant and fieldhouse leader positions were essential and decided to work them back into the budget. Most of the budget cuts, however, came from the city's public improvement program. One project was cut from this year: a satellite auto maintenance facility. Also, part of the facility buildout plan was cut, which includes the renovation of City Hall and the Public Works building. Both the satellite auto facility and the renovations will eventually be funded through a long-term financing plan called the Bricks and Mortar program. Projects set for next year that were cut totalled almost $117,000, including a library expansion and $40,000 for playgrounds. Another $40,000 was left in the budget for playgrounds. Council's contingency fund also was reduced $150,000 in the effort to pare down the tax increase. Departmental operating budgets were reduced by more than $75,000. Councilman Steve Rapson, who was pushing for the budget cuts, said he couldn't support the increase to 4.35 mills. He did support including the two new employees in the budget and increasing the millage to 4.06, last year's millage rate. Mayor Bob Lenox, Councilwoman Carol Fritz and McMenamin said they could support increasing the millage to 4.35. Councilman Dan Tennant was not present at the meeting. Fritz said she felt avoiding a tax increase would lower employee morale and affect services the city provides. She added that if the millage rate was held down and voters approve projects in the bond referendum this November, "It's a double whammy" because taxes would have to go up more in the next few years for the new projects. Lenox agreed that holding the tax rate down could mislead the public. Lenox explained that holding out for less density in residential housing projects has cost the city about $4 million a year in the budget, but that's what the citizens wanted. Rapson said he thought staff worked hard in going back to the budget and suggesting cuts. Lenox said he agreed that the process resulted in "a better budget." Rapson was disappointed that some of his advice wasn't used in compiling the "new" budget. He tried to encourage a realignment of the budget by taking away funds for four vacant positions on the Police Department and two vacant positions in the Public Works Department. Even if the vacancies aren't filled, the money earmarked for them is used to pay overtime and for part-time employees, Police Chief James Murray added. "I could be at full staff tomorrow, but I assure you: you wouldn't like the policemen I'd have to get to do it," Murray said. Salvatore said such a change in the budget would only reflect a one-time savings anyway. City Manager Jim Basinger said he preferred to leave in the funding for the vacant positions to have a more conservative budget. Lenox said the city has always budgeted conservatively just in case the city's revenue projections aren't met. The budget reflected a $100,000 increase in the projections for local option sales tax revenues at Rapson's request. Basinger said he was worried about over-calculating those figures because of the recent downturn in the economy. McMenamin said she has heard comments from citizens "to stop designing flags and run this city." She was referring to a council decision several months ago to have the Recreation Commission study the idea of developing a new flag for the city, an idea suggested by Tennant.
|
||