In a lengthy

budget meeting Monday night, the Peachtree City Council pared down a potential

$1.375 budget increase for 2003 down to $181,000 by cutting a number of

public improvement projects.

But council

members are considering a possible raise in the millage instead of hiking

it up significantly next year particularly because they may not be able

to make similar cuts in next year's budget.

"We'll

still be having these problems next year because they are recurring expenses,"

said city finance director Paul Salvatore. He said it is unlikely council

will be able to cut $1.5 million from next year's public improvement plan,

which is where most of the cuts were made from the upcoming 2003 budget.

The cuts included

the expansion of the Gathering Place ($104,000), paving a parking lot

at the Meade softball fields ($250,000) and building restrooms and a concession

area at the Kedron multi-purpose rink ($150,000). Also, council scaled

down several projects including its street resurfacing program, cart path

resurfacing program and improvements to the intersection of Huddleston

Road and Dividend Drive.

The lion's

share of the $1.375 million budget hike was attributed to the increase

of claims on the city's self insurance fund, which many pointed out that

the council has no control over.

The self insurance

program was increased by $735,000 in the budget to hopefully cover even

more claims which are anticipated for next year. The city is also soliciting

bids for medical insurance, but officials aren't optimistic they will

be able to save money by switching to such a program.

The $180,000

increase for the 2003 budget is still on the books and Salvatore hopes

to convince council not to take the funds out of the city's cash reserves

to balance the budget and avoid a millage increase.

"We need

to build it up," Salvatore said of the cash reserve in an interview

Thursday morning. "Right now we'd rather be building it up by $200,000

than taking $200,000 out."

The reserve

fund is estimated to be at $2.3 million after this fiscal year ends.

Council is

expected to hold another workshop on the matter before taking official

action on the budget.

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