For the first

two months of the fiscal year, the slowed economy has hit Peachtree City

hardest in its collection of hotel-motel tax revenues.

Revenues from

other funds, however, have more than made up the difference, keeping the

city at 7 percent above its original budget projections for the first

two months. Still, with that good news, the funds embargoed for a slew

of city projects and equipment in case of a budget shortfall won't be

released for another two months.

"We want

to see what happens with the local option sales tax over the next few

months," said City Finance Director Paul Salvatore.

Salvatore was

referring to the city's largest revenue source, the local option sales

tax, brought in $939,988 for October and November, less than one percent

under original projections.

But hotel-motel

revenues were down almost 38 percent from the city's original projections

for the same period, largely due to the nation's economic slowdown, according

to Salvatore. To make up for the $66,000 shortfall, Councilman Steve Rapson

suggested council consider increasing the hotel-motel tax from 5 percent

to 7 percent until the slowdown tapers off.

Rapson also

suggested going