A public

hearing on Peachtree City's budget for the 2000 fiscal

year was to be conducted last night at the regular City

Council meeting.

The budget

is scheduled to take effect Oct. 1, pending the outcome

of last night's vote.

A budget

meeting was conducted in July, at which time it was

announced that the city's millage rate would remain at

4.06 for the fourth year in a row. However, the city is

projecting a 7-percent jump in property tax revenue to

$3.9 million, contributing to an overall 4.16-percent

increase in general fund revenues to $15.6 million.

The millage

rate was reduced from 4.18 in 1995. It was as high as 4.5

in 1990 and 1991.

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, according to city projections.

The total

estimated budget of $22.9 million presented in July

included rebudgeted funds for the Public Improvement

Program.

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 as

build-out gets closer, according to the budget summary.

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.

An

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

retirement program, which city officials believe will

keep employees around much longer.

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

expects the FY2000 budget to see 84 cents of every dollar

going toward services for city residents, as opposed to

16 cents earmarked for administrative costs. "