The downturn

in Peachtree City's hospitality industry could lead to another increase

in the city's hotel-motel tax.

Just last year,

the City Council voted to increase the tax from 3 to 5 percent, in part

to fund the construction of the final expansion of the city's tennis center.

But hotel-motel tax collections for the first few months of the city's

fiscal year are still down 27 percent despite December's collections being

just 6 percent below projections.

The City Council

is scheduled to consider an increase in the hotel-motel tax at its meeting

Thursday night.

Depending on

whether the hospitality industry rebounds in the near future, the city's

hotel-motel tax shortfall could range from $98,000 to $209,000. Several

months ago, council approved a plan to embargo funds earmarked for equipment

and projects for the current budget year in case the slowed economy severely

cuts into the city's revenue stream.

Funds from

the hotel-motel tax revenues are also given to the Development Authority,

which operates the tennis center and the city amphitheater and the Airport

Authority, which oversees Falcon Field.

Finance Director

Paul Salvatore, in a memo to council, recommended that the Development

Authority and Airport Authority be asked to absorb a pro rata share of

the shortfall based on the proportion of the tax they receive.