Sandy Springs city officials anticipate a $5.4 million drop in revenues next year and expect to cut spending by about $7 million, according to budget figures released during a City Council workshop.

City officials project property taxes will decline by about $1.7 million, to $26.6 million and sales taxes by about $400,000 to$19.5 million. Expenditures are projected to decline from about $83 million in the current fiscal year to about $76 million next year.

John McDonough, Sandy Springs City Manager

“We have not had a turnaround in the economy nor do we expect to see one in the next year,” City Manager John McDonough told council members during the May 24 meeting. “So we have remained conservative [in drawing up the city budget].

Council members asked to review the numbers in three months and six months to determine whether the projections turn out to be accurate.

The 2012 city budget proposal includes $8.6 million for funding of capital improvement projects; $5.5 million in funding for the City Hall project; $2.5 million for the city’s storm water management program; $300,000 to develop a master plan for downtown Sandy Springs; $500,000 for a new economic development fund; and $1.1 million in contingency to cover unexpected costs related to the transition in city services from CH2M HILL to three new contractors.

–Joe Earle

Joe Earle

Joe Earle is Editor-at-Large. He has more than 30-years of experience with daily newspapers, including the Atlanta Journal-Constitution and was Managing Editor of Reporter Newspapers.