The city of Atlanta is spending through its budget at a faster clip than it should be.
The city is on pace for a $6 million shortfall by the end of the year at current rates, Jim Beard, the city's acting chief financial officer, told The Atlanta Journal-Constitution.
In the context of a $550.6 million general fund, a $6 million annualized gap means the city is spending money about 1 percent too fast. But Beard said he was not concerned, because the numbers covered only three months of data -- July, August and September -- and the gap is manageable.
"I'm not worried," he said.
The projections were discussed at a City Council retreat Thursday in downtown Atlanta.
After the meeting, City Council President Ceasar C. Mitchell called for belt-tightening now, rather than a drastic reduction later in the fiscal year.
"We are in the second quarter of the fiscal year and we need a plan to adjust our spending rate," Mitchell said in a statement. "The Council needs to see a plan of adjustment from the administration now rather than making or taking draconian actions in the fourth quarter. By then it may impact service delivery, quality of life and citizens' satisfaction."
In a conversation earlier this month with The Atlanta Journal-Constitution, Atlanta Mayor Kasim Reed said he expected staffers to start working on the next budget in mid- to late December, when about six months of results are in. Atlanta's fiscal year starts July 1.
On Thursday, the city's finance department briefed the City Council on the city's financial outlook. The retreat at the Georgia Rail Freight Depot near Underground Atlanta will continue Friday, with scheduled discussion of pay grades for city employees and other topics.
According to city finance officials, the real estate market will remain depressed in the Atlanta region. The decline of residential home values will weigh heavily on property tax revenue collections. Property taxes account for about one-third of the city's general fund budget.
"I'm glad we got a financial outlook report before half-time, so we won’t have to throw a Hail Mary pass in the last minute of the game," Mitchell said.
About the Author
