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Increased taxes to follow with higher property values
After multiple meetings and discussion, the Peachtree City Council adopted the $33.5 million Fiscal Year 2017 general fund budget with no comments.
The $33,525,752 budget comes with no millage increase, thus maintaining the current 6.756 millage rate, and with no staff salary increases or benefits enhancements. The new budget represents a .5 percent increase over the original FY 2016 budget.
Based on previous discussions, the budget was supposed to include a .25 millage rate increase, but that was eliminated due to the likely 4.5 percent growth in the tax digest. The decision not to rollback the millage rate means that the new budget will serve as a tax increase for property owners.
Budget increases for next year included increased appropriations for employee health insurance, worker’s compensation insurance and general liability coverage. The city will also see a decrease of approximately $100,000 in defined benefits funding.
The budget will include a reserve percentage of 34 percent, or $11,286,473. The city requires that a minimum 25 percent reserve be maintained.
City Finance Director Paul Salvatore in a previous meeting said salaries have increased 5 percent, health insurance has increased 22 percent and the defined benefits pension has decreased 8 percent.
Council members in previous meetings agreed with City Manger Jon Rorie that the position for an assistant police chief, at $108,512 be carried forward next year. He recommended that the previous allocation of $88,932 for a public works director be eliminated.
Rorie also recommended, and the council agreed, that a council retreat-recommended citizen engagement specialist at $86,049 be eliminated along with portable restrooms at $35,000. The portable restrooms can be secured at a later date using other funding sources, he said.
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