No Property Tax increase in Peachtree City, GA for 2010!
Hey Peachtree City & AR...City Council recently voted by a margin of 3 to 2 not to increase property taxes for fiscal year 2010! However, Council did agree to increase the millage rate to 5.711 mils. The increase in the millage rate would prevent the usage of cash reserves for the FY 2010 budget. Just in case you are wondering were the money is going....approximately 16.5% is headed to Peachtree City, 67.2% goes to Fayette County School Board, 15.5% goes to Fayette County and 0.7% goes to the State. Three public hearing were scheduled (as required by law) to advertise the increases.
Peachtree City's Finance Director, Paul Salvatore and City Manager Bernie McMullen recommended the increase which would have raised the average resident's taxes an additional $27.00 and brought a total of $474,000 in revenues to the City's coffers. According to City officials, without the raise in millage the City would have been forced to use almost a half million dollars out of the current $9 million in surplus monies.
There is much speculation surrounding the decision as concerns for a continuing downturn in the economy may pose a risk to current budget reserves. Some officials believe that uncertain and unstable economic conditions could lead to a more substantial tax increase down the road. Pundits have indicated that realistically not raising property taxes could result in property tax increases of $300 next year.
Peachtree City mayor Harold Logsdon has been outspoken on his objection to a tax increase based on the 35% excess in cash reserves. Logsdon feels that the City can use a portion of their cash reserves to eliviate a tax increase and still keep a 33% reserve. The City's policy is to keep 20% to 25% in reserves.
Should taxes have been increase? Well...Salvatore further stated that the survey results from residents and businesses who responded indicated a 70% and 74% support of the increase.
Okay Peachtree City, of course the looming question in your mind is.....what is the percent of responses received from the survey sent to businesses and residents? Great question! May I suggest a call to your local councilperson or to Mr. Salvatore's office to get an appropriate response.