Among north Fulton County communities, the city of Mountain Park is unique.

It has 500 residents, about the size of some neighborhoods in surrounding cities. It doesn't have any businesses. It has only one full-time employee.

And every budget season, the tiny community pays dearly for its size. Because it has no commercial tax base, city expenses are borne by some 250 households.

This year, they may be asked to pay more.

Elected officials who are preparing the budget say they face a $403,000 deficit this year, if they roll back the millage from 11.78 to 11.73. That would be just enough to offset the increased value of city properties.

Anything less than a full rollback will result in increased taxes based on higher assessed values.

For some longtime homeowners, the best tax rate is a lower rate.

In a letter to all residents, a 19-resident "No New Tax" coalition encourages officials to hold the line.

"We know our city is in a period of 'hard times,' so is this a period of hard times for our families and our country," the coalition letter states. "It is not a time to ask for additional tax monies."

The council and mayor have started to discuss the options, including short-term loans, transfers from city reserves and deeper cuts in this year's remaining budget, as well as cuts in the preliminary $617,000 budget for 2009.

Among other expenses, the proposed budget for the fiscal year that begins Jan. 1 includes $65,000 for a full-time city manager —- a first for Mountain Park.

A $30,000 amendment proposed for the 2008 budget would allow the city to hire the manager this year.

The city has advertised an eye-popping proposed tax increase of 55 percent. But that's based on a millage of 18.22 that City Council members say they likely won't adopt.

The City Council advertised the high rate, Mayor Jim Still said, to give officials time and room to pick an appropriate rate. Under state law, cities can lower the advertised millage, but they can't go any higher without re-advertising. As mayor, Still doesn't vote. But he's torn over the budget.

"I do not want to raise the taxes more," Still said. "[However], I do feel there is going to be a slight tax increase."

In a work session last week, some council members, such as Bob Douds and Frank Baia, said they would oppose any tax increases. "The reality is people are being taxed too much," Baia said.

Councilwoman Julia Neal, who prepared the budget, argues the city is struggling with necessary expenses. She advocated for money in the budget for a city manager. "We can't go a step further until we have a professional staff at City Hall," she told colleagues. "You need professional help. That's that."

The Mountain Park budget follows the calendar year. The council expects to make a final decision on a budget for next year, and the tax rate, on July 2. It has scheduled public hearings at 11:30 a.m. and 6 p.m. June 23, and at 7:30 p.m. July 2.