Although Peachtree

City's hotel-motel tax revenues are far under projections, the city is

still ahead of the game as far as its other revenues are concerned for

the first four months of the year.

The revenues

have been buoyed by a $292,000 increase over revenue projections for insurance

premiums and an additional $45,000 increase in permit revenues. Additionally,

court fines are up 17 percent, adding another $36,000 that wasn't planned

for the first four months

All three combined

more than covered the current $104,000 shortfall in the hotel-motel tax

revenue category. And council still has that loss covered since the city's

Development Authority and Airport Authority have agreed to cut back their

expenditures to stave off any year-end shortfalls in the hotel-motel tax

revenues. Both authorities depend on revenues from the hotel-motel tax

for operating funds.

Councilman

Steve Rapson noted that without the unexpected windfall from the increase

in insurance premium revenues, overall revenues would be 1.5 percent under

staff's original projections.

Council originally

withheld $1.46 million in this year's budget in case revenues were down,

particularly in light of the terrorist attacks Sept. 11. But at its regular

meeting last week, the City Council authorized the release of $619,000

of those embargoed funds.

That clears

the way for the expansion of the Gathering Place, which won't occur right

away and is a topic on the council's retreat for March. Also included

in that release of funds is $263,000 dedicated towards the city's cash

reserve, and the city can use that money if an economic downturn hurts

revenues significantly, said city finance director Paul Salvatore.

The released

funds will allow the city to proceed with playground improvements, replacement

of the halfpipe skate ramp and the purchase of an asphalt roller and rubber

tire fork lift via leases.

Also included

in the plan is the release of $35,700 in operating funds.

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