Hoping to keep

Peachtree City's millage rate stable in future years, the City Council

has shrunk its cash reserve goal.

Cutting the

goal by approximately 10 percent won't hurt the city's bond rating, said

finance director Paul Salvatore.

"Rating

agencies would say they're happy you have a cash reserve policy on the

books," Salvatore said.

Originally,

council had set a goal of building up a $5.16 million reserve, but with

its action last week that number has shrunk to $3.62 million. The target

date to reach that reserve point is Oct. 1, 2004, which marks the beginning

of that fiscal year.

"This

will effectively keep our millage rate the same" in 2004 and 2005,

said Councilman Steve Rapson, who spearheaded the changes.

The catch is

that the city uses the reserve funds from time to time for cash flow purposes

so the entire reserve fund is not available all the time, Salvatore explained.

Other changes

to the city's budgetary policies included eliminating the council contingency

line item, which amounted to 2.5 percent of the operating revenues for

the entire year, and shrinking the self-insurance reserve fund and the

public improvement program contingency fund.

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