“It appears the revenues are showing some signs of weakening,” said Griffin Director of Administrative Services Markus Schwab.
He said although the city’s general fund is on track at present, the projections indicate there will be a shortfall of approximately $450,000 in the fund’s revenues.
City Manager Kenny Smith pointed out that this does not take into account the $200,000 Homeowners Tax Relief Grant, which was budgeted by the state, but has not been distributed.
Griffin Mayor Dick Morrow added the loss of certain customers has affected city water revenues as well. Commissioner Joanne Todd asked how much money the city is making from increased rates. Griffin Director of Public Works Brant Keller said revenues should increase by $250,000 from April until the end of June. Morrow said the loss of Springs Industries would eclipse the increased revenue brought about by the higher rates, resulting in a net loss for the year.
“The trends we’re seeing do not bode well for the budget,” Morrow said.
At the evening meeting, Commissioner Doug Hollberg moved to approve the community redevelopment tax incentive program, which would triple the city property taxes on vacant, blighted properties. The measure passed 5-2, with Commissioner Bill Landrum and Commissioner Rodney McCord dissenting.