City can cover loss with fund balance from 2007

Sales tax revenues for Peachtree City are down about 8 percent from projections, but the city can make up the shortfall so far with an overage of cash on hand left from the end of the 2007 fiscal year, City Finance Director Paul Salvatore told the City Council last week.

Salvatore said the city’s “fund balance” is used to address such issues by having cash on hand to address such shortfalls. That way the city can continue to maintain its service levels without increasing the millage rate, Salvatore said.

City Manager Bernie McMullen said he spoke with the city’s division directors and chiefs about three to four weeks ago, notifying them to put off the purchase of items that weren’t considered essential.

McMullen said the city’s real budget challenge will come in the property tax digest, which is not expected to grow much at all.

That, McMullen said, will provide “a challenge next year.”