Preliminary

budget talks indicate a slight increase in the fiscal

year 2000 operating budget for Peachtree City, but the

millage should remain unchanged for the fourth

consecutive year.

City

manager Jim Basinger noted in last week's City Council

budget meeting that local option sales tax and ad valorem

tax should be the city's chief source for the upcoming

year, at 33 and 27 percent, respectively.

The millage

rate of 4.06 was reduced from 4.18 in 1995. It was as

high as 4.50 in 1990 and 1991.

An increase

of 6.64 percent is expected in the operating budget over

1999, with ad valorem tax revenue expected to rise seven

percent and sales tax three percent.

Hotel/motel

tax revenues, which are now being transferred to the

Airport Authority and Development Authority on a monthly

basis, will soon begin shifting more toward the general

fund as those two bodies become more self-sufficient

financially. The city will place slightly more than

$60,000 of those funds into its general fund in 2000,

should revenue projections hold up.

Assistant

city manager Joe Morton said that the FY2000 budget

should see 84 cents of every dollar going toward services

for city residents, as opposed to 16 cents earmarked for

administrative costs.

Councilman

Robert Brooks said that he considers the proposed

$850,000 contingency fund rather high, noting that it

makes up four percent of the total budget.

Basinger

answered that some unforeseen expenses are to be

expected, and citizens expect the work to be done when

necessary.

Mayor Pro

Tempore Annie McMenamin added that bids for work are

almost always higher than budgeted, to which Basinger

added that prospective bidders check the city's budget to

see what their parameters can be.

An

estimated $87,400 has been budgeted for changes in the

retirement program for city employees. The current

ten-year vesting period is being changed to five years,

which many city officials believe will help keep good

employees around much longer.

The city

will also match 50 percent of employees' contributions

into the 457 matching deferred compensation program, up

to four percent of an employee's salary.

The City

Council is expected to vote on the budget in September.

<!--

-----------