The Suwanee City Council approved a budget for 2012 Tuesday that could include a break for local homeowners even though total revenues are expected to dip in the next year.
The council approved an $11.8 million budget for fiscal year 2012, about $420,000 less than the adjusted budget from the previous year. The spending plan allows for a potential decrease of 0.5 in the millage rate to 5.65 mills; council members will consider that proposal at their Aug. 23 meeting.
“We’re pleased to be able to hold the line on operational expenses and to reduce slightly the burden on taxpayers during this sustained economic downturn," City Manager Marty Allen said.
The budget anticipates lower revenues from licenses and permits, service charges, and property and hotel and motel taxes, among other areas. Some of the decreases can be attributed to Suwanee losing the use of radar and laser speed detection devices in January as part of a dispute with the county.
Overall, the city is expected to bring in 3 percent less in total revenues, according to the budget.
City officials say they've planned for the decline by making midyear budget changes in previous years, reducing the city's workforce and not relying on property taxes as the primary revenue source.
"We didn't get hooked on the development revenue stream," Allen said. "We reacted quickly."
City spokeswoman Lynne DeWilde also pointed to Suwanee's 76 percent population growth over the past 10 years, which should mean an increase in development and revenues from state and local allocations in certain categories -- excise taxes, for example.
The new budget also includes a 2.5 percent merit cost-of-living raise for city employees, $75,000 for a new community-engagement initiative and a contract for maintenance of right-of-way areas along Peachtree Industrial, which previously was provided by Gwinnett County.
Most attractive in the budget is the possible decrease in property taxes, said DeWayne Davis, who moved to Buford in April but still owns a condo in Suwanee's Town Center area. "Anything would help," he said.
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