With Peachtree

City's hotel-motel tax revenues continuing to suffer from economic doldrums,

city officials are worried about how to make up for a shortfall that could

reach upwards of $200,000 by year's end.

To stem the

losses, the Peachtree City Council voted to raise the hotel-motel tax

rate from 5 to 6 percent at its regular meeting Thursday night. Council

will meet with the Development Authority and the Airport Authority tonight

at 7 p.m. in a workshop at City Hall to address possible solutions to

the deficit.

Some significant

budgetary cuts may be in order for the city's airport, tennis center and

amphitheater, all of which rely on hotel-motel tax funds for their operating

budgets. Mayor Steve Brown has indicated he even wants the Development

Authority to consider postponing the expansion of the tennis center, which

will add six covered courts and a separate clubhouse/locker room facility

complete with a snack bar.

The City Council

will meet with the Development Authority and the Airport Authority tonight

at 7 p.m. in a workshop at City Hall to address possible solutions to

the deficit.

At last week's

council meeting, city Finance Director Paul Salvatore said increasing

the hotel-motel tax to the maximum 6 percent could result in a shortfall

between $98,000 and $181,000, depending on how the hotel-motel industry

fares the remaining nine months of the budget year.

Tate Godfrey,

treasurer of the Development Authority, and Catherine Nelmes, chairman

of the Airport Authority, said both groups would work with council to

find solutions to the projected shortage of funds.

Mayor Steve

Brown indicated that the city would have to "eat" some of the

shortfall, but he wanted to see both authorities willing to make some

cuts in their budgets also.

Godfrey said

putting off the tennis center expansion could pose problems since council

raised the hotel-motel tax from 3 to 5 percent last year specifically

to fund the expansion.

"If the

Development Authority can come up with something outside the box, I'd

like to hear it," said councilman Murray Weed.

Brown said

he was concerned about rumblings he heard about the hospitality business

suffering throughout the state.

"We've

really got to do something very, very quickly," Brown said. "There

are going to be some hard decisions to make."