Comments (0) | |

Wednesday, Jan. 14, 2009

Fort Valley officials discuss cuts to budget

Fort Valley Mayor John Stumbo told the City Council that he planned to ask department heads to cut each of their budgets by 5 percent.

During a work session Tuesday, Stumbo explained that the city is facing a possible budget deficit of $330,000 at the end of the fiscal year.

“There’s no way we can absorb $330,000 against our reserve without putting us in jeopardy,” Stumbo said.

With the cuts, Stumbo said the city could save more than $220,000 while making an effort not to decrease employment levels or salaries. He added that the remainder of the deficit could possibly be handled by looking at fuel costs and health care expenses, which were lower than anticipated. Collection of back taxes could also be another route, he added.

City Councilwoman Melba Hester was optimistic it would be effective.

“Most of the time you can find places in the budget where you can trim,” Hester said.

However, in a display that economic times are not all bad, the Fort Valley City Council is also expected to vote Thursday on creating an Economic Development Authority.

City attorney Charles Jones said Tuesday that the authority, if approved, would primarily serve as a mechanism to issue $4 million in bonds for the expansion of Blue Bird Corp. into the former Dan River textile mill. During the 10-year term on the bond issue, Fort Valley will own the facility. As part of the deal, Blue Bird is expected to annex 125 acres of its property into the city.

The school bus building company will use the 334,000-square-foot building for fabrication and warehousing parts. The project is slated to create more than 100 jobs.

“It’s a big step for us,” Stumbo said.

As stated in a resolution, the authority would assist in attaining and retaining employment opportunities for the city. The authority would consist of seven Fort Valley residents, including the mayor.

To contact writer Natasha Smith, call 923-3109, extension 236.