City Council of Peachtree City
<br />Special Called Work Session Meeting Minutes
<br />Thursday, April 7, 2022
<br />4 p.m.
<br />The Mayor and Council of Peachtree City met for a work session on Thursday, April 7, 2022. Mayor Kim
<br />Learnard called the meeting to order at 4 p.m. Council members attending: Gretchen Caola, Frank
<br />Destadio, Mike King, and Phil Prebor.
<br />Agenda Items
<br />1. FY2022-2023 Budget --Revenue Projections
<br />Financial Services Director Paul Salvatore said he would update Council on the figures from fiscal year
<br />(FY) 2021, now that the audit was complete and also look at major impacts on the budget since
<br />October 1. They did not have up to the minute figures on revenues coming in in FY 2022; for instance,
<br />March's sales tax would not be reported until the end of April, but they had a better idea of revenues
<br />than they did when the budget was presented in June of last year.
<br />He also wanted to show how revenues would support budget increases since 2021 and explain how
<br />the goals of stability in the reserve fund and in the millage rate would be achieved. Finally, he would
<br />present a financial overview of the next five years. Department heads would submit their requests soon
<br />for the FY 2023 budget, and Salvatore said Council would get a proposed budget in mid-June.
<br />FY 2021 started with a fund balance of about $21.5 million and tallied up approximately $41.8 million in
<br />revenues and $37.8 million in expenditures, leaving a net increase of $3.955 million. 2021's ending fund
<br />balance was a little over $25.5 million. Ending cash and cash equivalents was about $21.5 million, and
<br />Salvatore said that was due to the lag time in receivables, adding that reserves and cash reserves
<br />were not always the same thing.
<br />Learnard asked about the amount of monthly sales tax revenue each month, and Salvatore said it was
<br />around $700,000.
<br />Out of that total fund balance of $25.5 million, he continued, they had commitments of around $3.2
<br />million, leaving an uncommitted fund balance of about $22 million. That was the figure they
<br />considered as the reserves, and was the one they used to figure the percentage of the reserve fund.
<br />The FY 2022 expense budget was almost $44 million, which equaled a little over 50% of uncommitted
<br />reserve funds. Current policy required 31 %.
<br />Salvatore presented a list of commitments they had made for the $3 million in reserve funds since the
<br />fiscal year began in October. They agreed when the budget was adopted to use $553,000 in reserves
<br />to balance it. Carryover appropriations, or unfinished projects, mostly due to supply chain issues,
<br />totaled about $390,000, and the unbudgeted portion of the 5.2% cost of living increase for employees
<br />was $545,321. Inflation pushed this cost higher than usual. Increases for Public Safety employees in
<br />order to boost retention and recruitment cost about $240,000. Council voted to add three new
<br />maintenance techs at a cost of about $196,000. Council voted to pay off a 2009 brick and mortar loan
<br />for $430,000. Salary adjustments brought about by the pay study would total approximately $600,000 a
<br />year. Other items totaled $256,000, and Salvatore pointed out that $250,000 of that was for tree
<br />maintenance and removal.