By Maggie Lee / Staff

With updated data showing a projected shortfall of $1.4 million, the city of Alpharetta’s budget may have to shrink by at least $2 million in the next fiscal year.

Alpharetta’s six City Council members and the mayor heard the figures during a retreat last week.

But according to Councilman D.C. Aiken, the city still will be able to provide full services without raising the property tax millage rate, but some capital projects may be delayed.

“We’ll know by the end of June if we can do it,” he said. “I think we can.”

The city had projected revenue for its general fund of $55.6 million for this fiscal year, which will end on June 30.  But decreases in major income sources such as property taxes, local sales taxes and fees mean the coffer won’t be so full.

City finance director Tom Harris told the council that revenues will likely continue to decline next fiscal year.

“The tax digest is down,” acknowledged new Councilman Chris Owens after the retreat, “but not as much as one would think, reading the national news.”

Harris presented some ideas to lower expenditures: a hiring freeze, cutting maintenance and operations allocations across departments or dipping into capital to pay for road resurfacing.  On the revenue side, he suggested the council could look at raising certain fees.

Councilwoman Cheryl Oakes emphasized that all numbers are tentative for now.

“It’s a question of how tax appeals will affect budgeting,” she said.

This city issued only 19 permits to build single-family homes in 2009; that’s down from 222 in 2006. During that time, total valuation of commercial plus residential property valuation dropped from $347 million to $84 million.

The mayor’s proposed budget is expected in April; the council will hold hearings and a vote before the end of June.

These general budget figures do not include accounts like solid waste or 911 service, which receive specific revenue for a specific purpose.

During the two-day retreat, the council also heard 2009 roundups from several departments.

Public Safety Director Gary George reported that the city police’s Criminal Investigations Division handled 902 cases; about one third were cleared.  Among the more serious crimes, two-thirds were cleared.

The city also aims to reach the gold level certification in the Atlanta Regional Commission’s Green Cities program. The Department of Community Development calculates it has 190 points of  a possible 375 on the ARC’s to-do list. Their goal is to reach 305 points, probably by conducting energy and water audits and by encouraging drought-resistant landscaping this year.