No Layoffs or Tax Hike in Powder Springs, Hopefully

Despite a budget shortfall, Powder Springs Mayor Pat Vaughn says she is hopeful residents won’t see a tax hike or layoffs.

The City Council had a workshop Wednesday night where a proposed budget was given to members.

“We still have some tweaking to do,” Vaughn said, “but we are hopeful.”

Vaughn said the city will compensate for the shortfall by not buying new vehicles, filling vacancies, or increasing salaries. Several projects will also be put on hold, sidewalk paving etc.

The city’s proposed fiscal year 2012 general fund budget is balanced with revenues and expenses at $6.7 million. Last year’s budget was also balanced, with revenues and expenses at $7.1 million, which is about $346,000 more than FY12, which begins July 1.

The picture presented Wednesday is better than the one discussed earlier this year when Powder Springs City Manager Rick Eckert to the budget shortfall of roughly $375,000 including staff eliminations and outsourcing the city’s sanitation services.

“There’s no real popular option,” he said in April. “Some are less popular than others.”

According to the Marietta Daily Journal, capital project expenses account for the deficit. SPLOST proceeds received in previous years will be used for some of those projects, said Beverly Waldrip, the city’s finance director. 

The Powder Springs City Council will present the budget to the public June 20, Vaughn said. She said city officials are still waiting on final figures for city expenses.

Powder Springs has been hit hard by a decline in property tax values due to the economy. Last year, five full-time and nine part-time employees were let go.