Atlanta homeowner Mark Turcotte fears the big city is in big trouble.

The city is laying off 441 employees. Mayor Shirley Franklin and her staff plan to cut back recycling pickup from once a week to twice a month. They're even eliminating one of the three "pothole posse" crews —- a service that drew raves from drivers when Franklin created it in 2002.

"These are the types of cuts that are going to severely impact the quality of life in our city," said Turcotte, 47, president of South Atlantans for Neighborhood Development.

Franklin said Thursday the layoffs and service cuts are necessary to balance the city's budget —- along with a property tax increase.

Her staff projects a $140 million shortfall for the fiscal year beginning July 1, but estimates $40 more million in property taxes, along with the proposed cuts and other fee increases, would eliminate the shortfall.

The other option, the mayor said, is to lay off more than 200 police officers and 90 firefighters and close six fire stations. That won't do, the mayor said.

Franklin's decision sets the stage for a potential battle with the City Council. The mayor needs eight votes from the 15-member body to approve her budget. It will be a tough sell, some council members said.

"I don't want to give up on trying to fight a property tax increase, which means I'm going to have to go through the budget and find $40 million of things to cut," Councilman Howard Shook, chairman of the council's finance/executive committee, told reporters Thursday.

Shook estimates the property tax rate would rise by 1.7 mills if the budget proposal is approved. For a home with a fair market value of $200,000 receiving Fulton County and city homestead exemptions, that would raise the property tax bill by about $110.

Franklin's proposal to raise property taxes and various fees will hit the business community especially hard.

County tax assessors have already sent notices with a median increase of 44 percent to owners of commercial property. The numbers are so dramatic that the county lists eight properties whose estimated value will rise more than $100 million. Hundreds of others double and triple in value.

Atlanta expects to get $12 million in tax revenues from the revaluation without raising taxes.

Councilwoman Anne Fauver, whose district includes Midtown, said Thursday, "I strongly oppose any property tax increase."

As the property tax debate began Thursday, about 125 city workers learned they no longer had a job. "I was hoping that I wouldn't be one of the people," said Dana Jenkins, who works in Franklin's communications office, tears welling in her eyes. "They just told us to come to this meeting, we were getting laid off. It's a sad day."

Franklin told reporters that laying off city workers was difficult. "This is a very tough decision," she said. "We certainly want to see our families strong. We want to see them economically strong, and we will do everything we can with outplacement services."

Franklin unveiled her proposed $583.9 million budget Wednesday, a day earlier than expected. It contained some grim news:

> The city will close the Cleveland and Langford recreation centers.

> The city may not be able to afford to hire about 20 firefighter recruits now in training.

> Some civic events, such as the Montreaux Festival, will no longer exist.

> Lawyers who represent the city in code enforcement, traffic violation and other misdemeanor cases say they will be ineffective now that the city plans to lay off 60 percent of their 54-employee staff.

The city's chief operating officer, Greg Giornelli, said the city had few options.

"We're not trying to pull any punches," he said. "Will there be any noticeable changes in service levels? The answer is yes. But these are prudent and reasonable changes in service levels given what the alternatives are."

City officials say the shortfall is a combination of rising pension and health-care costs and less money from sales taxes and other sources. They've also admitted to bad budgeting practices, such as overestimating the city's surplus.

Most employees got the word about who stays and who goes Thursday. The city plans a job fair for some employees and may hire some in departments exempt from the layoffs.

The city said it was closing its employee shuttle service today. "All I know is that we've got to finish strong, and stay positive, it's about fulfilling a need," said city shuttle driver Mike Crews.

Since Turcotte moved to Atlanta eight years ago, the city has welcomed a new aquarium and scores of high-rise condominiums and seen some old neighborhoods revived.

The Beltline —- a transit loop of new homes, affordable housing and greenspace —- is in the early stages. Civic leaders want to build a civil and human rights center downtown and put streetcars along Peachtree Street.

"I felt like the city was making slow but steady progress," Turcotte said.

And now, he's worried.

Staff writer D.L. Bennett contributed to this article.