The Peachtree

City Council adopted its 2002 budget, to the tune of $23.2 million, at

last week's council meeting.

The budget

will require a millage rate increase from the current 3.83 mills. Officials

originally said the millage would be raised to 4.35, which would cost

approximately $40 for a home with a fair market value of $200,000.

But the city's

tax digest came in recently, allowing the increase to be somewhat lower,

at 4.315, representing a 12.5 percent increase over the current millage.

To adopt that lower millage rate, three special public meetings of council

will be held: Thursday, Sept. 20 at 9 a.m. and 6:30 p.m. and Thursday,

Sept. 27 at 9 a.m. Each meeting will be held at City Hall.

City Manager

Jim Basinger said he felt the arduous budgeting process "resulted

in the absolute minimum millage increase." He added that it will

help build the city's cash reserves, a facet strongly urged by city officials.

Councilman

Steve Rapson said he felt the budget didn't need a millage increase. Rapson

and Councilman Dan Tennant voted against the budget for that reason although

it passed 3-2 with affirmative votes from Mayor Bob Lenox and councilwomen

Annie McMenamin and Carol Fritz.

The budget

originally presented to council earlier this year was cut by approximately

$870,000.

The main reasons

for the budget hike were meeting goals for the cash reserve and the acquisition

of Drake Field, which was owned by Pathway Communities and was zoned for

commercial use.

The millage

rate, which is used to calculate property taxes, was rolled back last

year by council from 4.06 to 3.84 in an effort to avoid a tax increase

due to increased property valuations. Mayor Bob Lenox, and other council

members, have characterized that decision as a mistake.

Most of the

budget cuts this year came from the city's public improvement program.

One project was cut from this year: a satellite auto maintenance facility.

Also, part of the facility buildout plan was cut, which includes the renovation

of City Hall and the Public Works building.

Both the satellite

auto facility and the renovations will eventually be funded through a

long-term financing plan called the Bricks and Mortar program.

Projects set

for next year which were cut totalled almost $117,000, including the library

expansion and $40,000 for playgrounds. Another $40,000 was left in the

budget for playgrounds.

Council's contingency

fund was also reduced $150,000 in the effort to pare down the tax increase.

Departmental operating budgets were reduced by more than $75,000.

Rapson said

he doesn't see the need to increase the city's millage this year. But

other council members have said holding off on a property tax increase

could mislead the public as voters prepare to vote on the city's proposed

projects in the bond referendum.

Some of those

projects, such as the $2.6 million community center, will increase the

city's operating budget and in turn require millage increases.