East Point proposes to cut budget, give workers raises

By April Hunt

The Atlanta Journal-Constitution

East Point’s proposed budget lops off nearly a quarter of its general fund — the account that pays for basic city services — but also includes raises for all 500 employees and spending at least $90,000 to hire a new deputy city manager.

The general fund would drop 23 percent, down to $36.5 million, if the city adopts the preliminary 2010 budget. The budget includes another $53 million in enterprise funds, such as for water and electric utilities. Those funds dropped 9 percent from last year.

The budget would be retroactive, to take effect July 1. The city will continue to operate under an extension of last year’s budget until the city approves the new spending plan.

The cuts are part of the south Fulton County city’s overall plan to crawl out of debt. If all goes according to plan, the city hopes to eliminate its $6 million ongoing deficit by next summer. At the same time, the cuts should help the city slowly build up enough savings that, by 2011, it will no longer have to borrow money every year just to operate, said Mayor Joe Macon.

“It has been and will continue to be a question of cutting where we can,” Macon said. “But for this city, in these economic times, to be in the shape it’s in, it is nothing short of a miracle.”

Even with plans to hold the tax rate steady at 14.75 mills, though, some residents worry that the city is being too optimistic with its projections. A handful want the city to further lower its estimate of what property owners will pay in taxes this fall. The city expects to collect $12 million, down $3 million from last year.

Many others wonder why the city is hiring a new top-level supervisor in the form of a deputy city manager — who is expected to cost the city between $90,000 and $96,000 a year in salary and benefits — and if the city can afford the proposed raises. The budget includes a 3 percent built-in cost-of-living hike for most employees and 5 percent for police officers.

A public hearing on the proposal Monday came just hours after Social Security announced recipients would not see a raise for two years. In a city with many elderly residents, including Sharon Shropshire’s mother, that meant many would be worrying about where they could cut to find the money for their city bills like utilities and taxes.

“You can’t take care of your employees and not your citizens,” Shropshire said. “I don’t think that’s fair.”

City Council members requested both the raises, as a way to retain workers, and the hiring of a deputy city manager, a post included in the city charter. The council could further change those requests when it votes on a final budget next Monday.

The city also plans to monitor its projections and make adjustments as the year unfolds, said City Manager Crandall O. Jones. For instance, the council is expected to approve spending only $285,000 of $1 million in capital projects for now. That money will pay for 12 new patrol cars for the police department this fall.

The council plans to review its projections and needs in January, then decide whether to spend the remaining capital projects money.

WHAT’S NEXT

The East Point City Council will hold a second public hearing on its proposed budget at 6:30 p.m. next Monday at Jefferson Station on East Forrest Avenue in East Point. The council is scheduled to vote on the budget immediately following the hearing.

To review the budget online, visit www.eastpointcity.org .