Peachtree

City officials had their first joint meeting yesterday to

begin hammering out the specifics of what is expected to

be a combined budget of just under $23 million for fiscal

year 2000.

According

to a budget summary prepared in advance of Thursday's

meeting, the combined figure of $22.9 million includes

Public Improvement Program re-budgeted funds.

General

fund revenues for FY 2000 are projected to increase 4.16

percent from the previous year for a total of $15.6

million. That includes a seven-percent projected property

tax revenue increase to $3.9 million, based on the

current rate of 4.06 mills.

Slight

increases in local option sales tax revenue and

hotel/motel tax revenue also are projected. Building

permits and other permit categories are leveling off and

build out gets closer, according to the budget summary.

The

departmental budget is looking at a possible 6.64 percent

increase to $11.3 million after adjusting for court and

self-supporting recreational programs. Funding for five

new full-time and three part-time positions is being

considered in the proposed new budget.

The city

projects a contingency fund balance of $402,104 at the

end of this fiscal year, and has budgeted additional

funds to bring it up to $850,000 for the new year.

Plans are

in the works to begin a gradual reallocation program in

FY 2000 with respect to hotel/motel tax revenues

distributed to the Airport Authority and Development

Authority. This is because those two bodies are becoming

increasingly self-sufficient, and the tax funds were

intended to assist them until they no longer needed them.

Some

changes are proposed for the city's employee retirement

plans, such as changing the ten-year vesting period to

five years and matching 50 percent of employee

contributions up to 2 percent of salary. Standard salary

adjustments of 2 percent and merit increases are included

in the FY 2000 budget.

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