Porterdale facing huge budget shortfall
The lack of any new building permits, a personnel shakeup and the governor’s order to suspend a local grant have all contributed to what Porterdale officials say is a $200,000 budget shortfall for the city.
Porterdale City Manager Tom Fox briefed the city council on the budget shortfall at a work session last week and said they would have to find a way to balance the budget by the end of the fiscal year in December.
Fox said he told the council that they basically had two options: raise taxes and service rates or slash spending. Fox said he has been directed by the council to do the latter.
“My marching orders are to cut expenses,” Fox said. “We will not be raising taxes to compensate for any deficits, any budget shortfalls.”
Because the council is in a consensus that they don’t want to raise taxes, Fox said it looks like the shortfall will have to be made by laying off city workers, possibly as many as three-full time employees.
He attributed the shortfall largely to the lack of any new building permits and no new sewer and water tap fees this year as the housing market has completely stalled in Porterdale.
Fox said when the budget was written for the year, city officials thought they were on the conservative side when they budgeted for at least 25 new houses being permitted in the year equalling $158,000 to the city from building permits and water and sewer tap fees.