Tier 2

Tier 2

What are Tier 2 Projects?
The actual cost of Tier 1 SPLOST projects may be less than budgeted or the City may collect more SPLOST funds than originally budgeted. "Tier 2" projects are defined as being approved for funding or completion only if funding becomes available due to cost savings on Tier 1 projects or increased collected revenues. So, all Tier 1 projects would have to be completed and any funds leftover from Tier 1 may be used to complete any listed Tier 2 projects.

Peachtree City is budgeted $7,000,000 of its projected allocation for Tier 2 projects. This gives the City leverage to be able to complete Tier 1 projects that come to an actual cost higher than the budgeted cost. This is important because it is hard to budget for projects that may not be initiated until five to six years after the initial cost estimate is completed. This is because SPLOST is collected over a six year period so not all projects can be initiated within the first year or two of collections. Setting aside some funds for Tier 2 projects gives the City a "cushion" for Tier 1 projects that cost more than originally proposed. This is because Tier 2 projects are only funded once all of Tier 1 projects have been completed. If the $7,000,000 budgeted for Tier 2 projects needs to be used to cover overages of Tier 1 projects, then the completion of Tier 1 projects would take priority.

For Tier 2, Peachtree City is proposing to use an additional funding provided by SPLOST after the completion of Tier 1 projects for additional street and path paving/construction. The project descriptions for these Tier 2 projects (Projects 39 and 40) are the exact same as Project 22 & 23 (Path Construction, Path Transition Reconstruction) and Project 31 (Street Resurfacing Program). The project descriptions can be referenced on those respective project pages within this manual.