The first budget workshop dealing with Peachtree City’s FY 2016 budget was held June 15. Council members got a look at several versions of the proposed budget that carried a millage rate ranging between 0-.65 mills. A second budget workshop will be held on June 22 at 7 p.m.
As currently amended, projected revenues for the FY 2015 budget total approximately $31 million while expenses total $31.838 million. The current millage rate is 6.756 mills.
Proposed revenues for FY 2016 that begins in October total $33.956 million and includes a 9.5 percent increase in property assessments from the Fayette County Tax Assessor that would generate $1.057 million and a .65-mill increase generating $1.2 million.
Expenditures based on that version of the budget would total $34.38 million, representing a deficit of $424,365. Under that model, the fiscal year would end with a fund balance totaling $11,442,328. Of that amount, $8.59 million, or 33 percent of the total budget, would serve as reserves. The city targets 25 percent of the revenues to be held in reserve.
Significant items at play in the council’s considerations are street resurfacing, bridge maintenance, the employment cost index based on the Ga. Dept. of Labor estimates for state and local government staff and a new detective at the police department.
The main points with this proposal would include increasing street resurfacing from $645,232 to $2.575 million, funding bridge maintenance at a total of $200,000, retaining cart path maintenance at $440,000, adding a 2.1 percent employment cost index, adding one new detective at the police department and the annual golf cart proposal. The proposed budget comes with a recommended millage rate increase of .65 mills.
A .65-mill increase would total $2.362 million in spending and would provide and additional $1.929 million for resurfacing, $50,000 for bridge maintenance, $303,315 for the employment cost index expenses and $79,211 for the new detective’s salary, vehicle and equipment. The cost of the detective would be an ongoing annual expense.
An alternate FY 2016 budget with the property assessment increase but with no millage rate increase would have revenues at $32.75 million.
Expenditures under the alternate model would total $33.199 million, representing a deficit of $448,425. That model would cary a year-end fund balance of $11.418 million. Of that amount, $8.3 million, or 34 percent of the total budget, would serve as reserves.
A budget with no millage increase would have an additional $1.03 million for resurfacing, would maintain the employment cost index increase and the new detective and would eliminate bridge maintenance.
Finance staff provided other options for council to consider or amend. Those are situated in the middle between a no-mill increase or one increasing the rate by .65 mills. Those models, showing a .25-mill and a .5-mill increase, have other funding levels of the identified, needed expenses such as resurfacing.
A second budget workshop will be held Monday, June 22 at 7 p.m. in the council chambers.
To be adopted in September, the 2016 fiscal year begins in October.
