Revisions to the first draft

of Peachtree City's proposed 2004 budget likely won't include a cost-of-living

raise for city employees, even though that was one of the main concerns

City Council members expressed when they got their first look at the spending

plan in July.

Council members will sit down

with city staff for a second workshop on the budget Thursday at 5 p.m.

in the downstairs conference room at the library, adjacent to City Hall.

The budget workshop was originally

scheduled for a week from Thursday, but was moved up to handle some scheduling

conflicts, said City Manager Bernard McMullen.

"Staff has put together

the information the council has requested, so we're ready to present it,"

McMullen said.

The estimated $27 million budget

proposal, described as "lean" to "bare-bones," doesn't

have room for a lot of negotiation, McMullen said.

"Our starting points will

be the staff's latest recommendation to the council, based on the previous

meeting, and then any further reductions in spending that might can be

made anywhere," he said.

"Right now, there is no

cost of living increase," McMullen said. "We could find cost

savings to partially fund it, but not fully fund it."

A further increase in the tax

rate might be the only way to compensate the city's 250 workers, McMullen

suggested.

"Our recommendation would

be that if (city council) wants to go forward with a 1 percent cost of

living raise, to fund it by reducing some expenditures further and adding

a small increase to the millage."

In its first draft, the proposed

budget figured on a 0.648 millage rate hike, generating about $1 million,

less than the full millage increase city finance officers thought they

might need to stay out of the red in 2004.

McMullen said there had been

no hue and cry from homeowners about the take hike, which would largely

make up for a dip in revenues the city used to receive from the county's

Local Option Sales Tax distribution.

Last year, the city and county

reached an agreement that has the city receiving gradually smaller shares

of the LOST pie. For 2004, that amounts to $620,000 less than last year,

the city has estimated.

The tight budget makes approval

unlikely for Mayor Steve Brown's suggestion at the July 24 workshop that

the city's senior residents be given a homestead exemption.

Under Brown's recommendation,

homeowners age 65-plus would get an extra $2,000 exemption off the value

of their property, a savings of just $9.41 a year based on the current

millage.

"Some of the council

members think that the savings is insignificant, but you have to start

somewhere," Brown said.

Homestead exemptions are offered

first municipality in the county to provide for it.

A public hearing on the 2004

budget remains scheduled for Aug. 21, during which time residents can

address the council and city staff about specifics of the plan. Formal

adoption of the budget, which takes effect Oct. 1, is expected at the

Sept. 4 City Council meeting.

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