Villa Rica cuts budget to account for economic slowdown
by Spencer CrawfordThe Villa Rican
17 months ago | 97 views | 0 0 comments | 1 1 recommendations | email to a friend | print
Lower revenues caused by a struggling economy have forced the Villa Rica City Council to cut some projects originally included in its general fund budget.

“Due to a poor economy, especially the building part of it, we have looked at our revenue streams and revised some of our revenues downward for a total of about $300,000 out of a $9.3 million general fund budget,” City Manager Larry Wood said. “We have then gone forward and looked at expenditures and made adjustments for projects that have already been approved that weren’t budgeted and made reductions in certain projects.”

That $300,000 cut is basically the full 3 percent increase over last year’s budget the council had originally approved. The city’s fiscal year runs from April 1 to March 31.

One of the largest cuts is slightly more than $100,000 for various capital improvement projects that were to take place at various park facilities around the city. Also, the city plans to reduce expenditures by implementing a hiring freeze for positions that are funded by the general fund.

Some staff members, especially those who have duties related to the construction industry, are already handling functions that were originally intended for new positions. Wood said those new positions will not be filled until there is a turnaround in the economy.

“We have saved about $30,000-plus in salaries and benefits thus far this year, and we expect by year end by not filling any positions that become vacant we’ll save up to $100,000,” Wood said.

The city has also revised its property tax revenues downward from an original 95 percent collection rate projection to a 90 percent collection rate after being told by the Carroll County Tax Commissioner that tax payments are already coming in slower than last year.

There were increases made in the city’s second quarter budget revision, including an increase in fuel costs for several departments due to rising fuel prices. However, it was noted that several departments, such as the police department, have taken measures to cut down fuel consumption.

“I’m crossing my fingers that I haven’t been overoptimistic with those numbers,” Wood said.

In related news, the council has decided not to move forward with the approved $13,000 asbestos removal contract for the old hosiery mill buildings that are part of the Avanti complex.

The decision was made because the city has yet to come up with an overall plan for the buildings and removing the asbestos would cause more leaks in the roof than are already there.

The Downtown Development Authority has proposed tearing the buildings down until the city comes up with an overall plan and then saving the hardwood floors from one of the historic buildings and using them to construct a pavilion for community events. That plan has not been approved by the council and there are no funds budgeted for the project.

The leaks caused by removing the asbestos would further damage the floor, only 120 square feet of which officials estimate is salvageable, while waiting on a plan to be approved.

The contractor who won the contract for the asbestos abatement proposed putting a tarp on the roof until the city came up with a plan for the project, but city officials said they would rather wait on the plan before removing the asbestos and demolishing the buildings.

“I don’t have a problem with taking the asbestos out of it and I don’t have a problem with tearing the buildings down, but if you don’t have the money you don’t have the money,” Councilman Joey Kelley said.
comments (0)
no comments yet
.