Rob Russell, who is city administrator and chief of police...and is now acting as city clerk...said the Pendergrass city council and mayor decided Tuesday to cut the staff to five once they started to see tax revenues dwindle rapidly.
"Something had to be done quickly," said Russell, "And from the mayor and the council's point of view that was cut staff because 57 percent of our cost is city staff."
Russell said the five staff members who were laid off will receive a severance package and be eligible for COBRA benefits for insurance. Also, the mayor and all council members decided they would forego any pay while the city is having financial trouble.
Russell noted that a three year audit was performed on the city's tax revenues. In 2006, Pendergrass took in $72,700 in property taxes, and this year the collections dove to $26,800. He pointed to two large subdivisions and a shopping center in foreclosure as part of the problem with property tax income.
In addition, SPLOST revenues for all of Jackson County dropped dramatically, and thus, the distribution to Pendergrass also fell.
Despite the financial trouble, Russell said the remaining city staff and elected officials remain optimistic.
"We're definitely not gonna give up...we're gonna be fine," said Russell. "We're gonna have to be leaner and meaner...and smaller."
http://accesswdun.com/article/2009/7/222130