Rome City Manager John Bennett said Monday the city will fall about $560,000 short of meeting its $27 million budget, based on revenues for the first three months of the year.
The City Commission agreed to cover the expected shortfall with cutbacks in areas ranging from capital projects and equipment purchases to training and travel, cell-phone usage and the annual citywide picnic.
“We intend to do this without layoffs,” Bennett said.
While property tax revenue is slightly higher than projected, Bennett said, income from sales tax, real estate and investment interest has dropped significantly. Meanwhile, costs have risen.
City of Rome employees could see a reduction in merit pay raises that are considered during employees' annual evaluation.
Employees who get the raises, which are based on performance, normally see an increase between 1 percent and 4 percent. The proposal would cap the maximum at 3 percent.
That could save the city at estimated $180,000, said Sheree Shore, the city's finance director.
“When we drew up the budget last fall, we never dreamed diesel fuel would be in excess of $4 a gallon,” he said.
Commissioner Evie McNiece noted the economic downturn is hitting cities across the state. She praised Bennett and Finance Director Sheree Shore for “taking a proactive look” at Rome’s financial situation.
Also on Monday, Commissioner Duane Reid said he was dropping plans to ask the board to suspend enforcement of the sign ordinance.
Reid said a caucus presentation by Chief Building Official Howard Gibson made it clear city businesses are complying with the code.
Complaints from businesses in Armuchee led the Floyd County Commission to halt citations — although not warnings — until an ordinance revision is completed.
On Monday, however, John Gaines of Coosa Valley Sign Co. asked city commissioners to back Gibson’s crackdown on temporary signs plastered around stores and in the right-of-way.
“We have made great progress and I don’t want to see a knee-jerk reaction to a few complaints,” Gaines said. “If we get rid of all the illegal clutter, the regular signs won’t have to compete for attention.”
In other actions, city commissioners rejected a request from promoters of the North Georgia Air & Car Show to provide up to $25,000 in contingency funds if the event is rained out or otherwise fails to break even.
The board indicated it could provide some in-kind services but members also noted other nonprofit events such as the Coosa Valley Fair operate without a government funding guarantee.
“It’s a good, wholesome event that attracts a lot of people, but where do you draw the line?” Reid asked.
Commissioners also received draft copies of a proposed change to the board’s code of ethics. The amendment is slated for a first reading at the board’s May 19 meeting with adoption expected at the June 2 session.
Under the current code, sitting commissioners review any ethics complaints filed against a board member.
Commissioner Jamie Doss said the revision would send the review to an outside panel of elected officials from nearby participants in the Certified City of Ethics program.
Click here for more detailed information about the board’s agenda items and actions.
