Fayetteville Council members March 6 heard the first reading of a budget amendment aimed at addressing a $211,700 deficit brought on by a sluggish local economy and its effect on city revenues.

During a presentation to the council, Finance Director Lynn Robinson said the continuing economic slowdown and its impact on city revenues is responsible for a $211,700 deficit in General Fund categories that include Licenses and Permits, Local Option Sales Taxes (SPLOST) and Fines and Forfeitures.

Robinson did not recommend using city reserves at this time, suggesting instead that the deficit be addressed by adjusting downward the budget of each city department by 1.89 percent.

Robinson said four other measures are being implemented to address the deficit. Those include no more purchases of capital items in the General Fund, Capital Projects Fund and Water & Sewer Fund, a hiring freeze to remain in effect for all positions except those in the fire department in conjunction with the SAFER Grant and a required review and approval of training and travel by department directors.

No out of state training, travel or conferences will be authorized, she said. Finally, capital projects funded with SPLOST and impact fee funds can continue as planned with the approval of the finance manager and city manager.

“Because the Finance Department stays on top if this so diligently, you’ve been able to adjust quite rapidly so we can stay on sound financial footing,” Mayor Ken Steele said after Robinson completed her recommendations.

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