b'TIER 2 PTC SPLOST 2023What are Tier 2 Projects?The actual cost of Tier 1 SPLOST projects may be less than budgeted or the City maycollect more SPLOST funds than originally budgeted. "Tier 2" projects are defined asbeing approved for funding or completion only if funding becomes available due to costsavings on Tier 1 projects or increased collected revenues. So, all Tier 1 projects wouldhave to be completed and any funds leftover from Tier 1 may be used to complete anylisted Tier 2 projects.Peachtree City is budgeted $7,000,000 of its projected allocation for Tier 2 projects. Thisgives the City leverage to be able to complete Tier 1 projects that come to an actual costhigher than the budgeted cost. This is important because it is hard to budget for projectsthat 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 beinitiated within the first year or two of collections. Setting aside some funds for Tier 2projectsgivestheCitya"cushion"forTier1projectsthatcostmorethanoriginallyproposed. This is because Tier 2 projects are only funded once all of Tier 1 projects havebeen completed. If the $7,000,000 budgeted for Tier 2 projects needs to be used to coveroverages 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 SPLOSTafter 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 sameas Project 22 & 23 (Path Construction, Path Transition Reconstruction) and Project 31(StreetResurfacingProgram).Theprojectdescriptionscanbereferencedonthoserespective project pages within this manual. Project Tier 2 Projects Estimated CostNumber39 Additional Street Resurfacing $5,000,00040 Additional Path Construction $2,000,000Tier 2 Total $7,000,000PTC SPLOST 2023|42'