Cutting Peachtree City's proposed

2002 budget won't be easy, but it is necessary, argues Councilman Steve

Rapson.

Rapson's fellow council members

agreed, at least in part, and directed city staff to look at budget cuts

in capital projects and other areas after an hour-long budget meeting

Thursday evening.

The proposed budget represents

a $1.15 million increase, mostly due to a 6.73-percent hike in the operating

budget and lease-purchasing plans for new facilities and equipment.

At the council's first budget

hearing last week, Rapson said the budget could be trimmed in a variety

of ways. He presented a plan that would eliminate the need for a millage

increase this year and increase the city's cash reserves by 30 percent.

Rapson suggested eliminating

some capital projects, cutting requests for new employees, realigning

department budgets and shrinking the council contingency fund by $200,000.

"You have to go to your

capital plan and start making tough decisions simply because you can't

afford to do those things," Rapson said.

Rapson also suggested shrinking

budgets of departments which have a number of positions vacant throughout

the entire year, such as the Police Department.

With a civic center and other

projects proposed for a bond referendum in November, it's important to

hold down property taxes this year because those projects will require

a millage rate increase once they are opened, Rapson noted.

"Our last resort should

be to increase property taxes," Rapson said.

Mayor Bob Lenox said he worried

that budget cuts could decrease the level of service local residents have

come to expect.

Rapson said when council evaluates

the budget, even public safety requests should be scrutinized. For example,

he asked whether the city would actually need a fire station for the West

Village area, a question that drew criticism from several sides.

"Public safety is the

last thing I'd touch," said Councilwoman Annie McMenamin. Councilwoman

Carol Fritz agreed, noting that the station is needed to cover existing

gaps in response time.

No funds for the station are

included in the proposed budget for 2002, however.

To cover the proposed budget

increase, city staff had recommended a .91 millage increase to council.

Last year, council rolled back

the millage rate and "balanced" the budget with $1.4 million

from the cash reserve. That decision was a mistake, said Mayor Bob Lenox.

"We said we could cut

the millage rate so there would be no tax increase," Lenox said.

"And now we're going to pay for it."

Basinger said "it wouldn't

be good business" for the city to dip into the cash reserves again

to balance the budget. Recently, council passed a slate of financial policies

requiring the city to have its cash reserves built up by the 2004 budget

year.

At the end of this year, the

cash reserves are projected to reach over $2.09 million, higher than the

original $1.4 million estimate. City Finance Director Paul Salvatore said

that assumes a $500,000 carryover from the city council's contingency

fund, and over two months is left in the budget year, so he asked council

to steer away from relying on those funds if possible.

If council chooses a lower

millage but doesn't cut the budget, the money would likely come out of

the cash reserves, according to city officials.

Salvatore said increasing the

millage slightly over the next few years would improve the city's bond

rating.

Back

to News Home Page |