Peachtree City will give the public a first look at the city’s budget June 27, but City Manager Jon Rorie is already asking the City Council for input on different funding ways for capital improvements.
Rorie explained that the high water mark of taxation in Peachtree City was 7.178, but the general obligation bond debt had shrunk to .372.
In the 2020 budget preliminary numbers, the millage rate for maintenance and operations would be 6.232 and zero for the general obligation bond.
“How do we fund capital projects?” Rorie asked the Council at a June 4 specially-called meeting.
Finance Director Paul Salvatore explained the city had options in paying for massive capital items. He said the city could use cash, or pay as you go, and debt financing.
He said debt financing eliminated spikes in the city’s budget, because you paid a more level amount each year.
He explained it was a policy decision to be determined by the City Council, but his opinion was to keep cash reserves high in case of another recession. He added spreading the costs over a number of years would protect cash and avoid the inflation attached to waiting to build projects.
Rorie did not ask the City Council to make a decision, but urged them to think about debt financing during the upcoming budget process.
“People take out mortgages for their homes all the time,” he said.