Alpharetta plans budget cuts in 2010

ALPHARETTA – The recession continues to cut into government budgets.

Alpharetta, one of only two Georgia cities with a Triple A bond rating, still expects its revenues to drop by $1.4 million and has cut its budget for 2010.

"Our numbers show a 2009 year-to-date negative trend of about 11 percent from 2008 actuals," said Finance Director Tom Harris.

He said the city still expects revenues will exceed the budget by approximately $765,000. For 2010, the city is budgeting another 5 percent decline in revenue.

The 2010 fiscal year is from July 1, 2009 through June 30, 2010.

Harris presented the recommended budget, including $55.6 million in the General Fund, to City Council in early May. The General Fund includes property and sales taxes, but not special revenue funds such as the E-911 and Hotel/Motel Tax funds.

It also does not include the debt service fund, which is $11.5 million of the total budget. Bonds sold after voters approve them through referendums have to be repaid, and debt service – accounting for 1.535 of the 5.75 millage rate proposed – is how the city pays them back. A Triple A bond rating helps the city get lower interest rates when paying back its bonds.

However, no matter what the city sets as its budget, revisions are expected.

City Administrator Bob Regus said 7 percent of the 2008 digest is still in appeal. A lot more people made appeals on the 2009 tax digest, he said, and legislation signed into law requires neighborhood-wide retooling when even one home is reassessed.

"It's likely the digest will go down," Regus said. Mayor Arthur Letchas said that tax digest is a big concern.

"We probably won't get it until the end of May," Letchas said.

Regus agreed and said the city will know a lot more about its financial standings when those numbers come in.

For its 2009 budget, City Council had approved new operating initiatives that would have added a network analyst, GIS specialist and upgrading a part-time position to full time. But those were put on hold, taking $390,000 out of expenditures. Another $350,000 has been saved by not filling 7.5 non-public safety positions during the year.

The full budget presentation will first be made for City Council and the public at 7:30 p.m. on Monday, May 18 at City Hall.

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