The city’s general fund is budgeted at $767,281; the water fund at $220,800; wastewater at $1,217,335; and the sanitation fund at $220,000.

The new budget represents an overall increase of about 18 percent when compared to the 2010/11budget of $1,987,983. Although the budget was initially believed to be balanced last year, there was a deficit of nearly $400,000 that placed the city in a state of financial emergency.

Commissioners also unanimously adopted the final 2011/12 millage rate, or the rate at which property taxes are levied on property, at 5.3194 mills.  City Manager Ellen Vause estimates that the adopted millage rate, which is the same as last year, will result in $244,386 in ad valorem tax revenues to the city.

A surcharge was added to the water and sewer bills beginning in May to help reduce the budget deficit. During the meeting, City Attorney Audrie Harris described the deficit as a “work in progress.”

“Our water and sewer rates should stabilize our historical deficits that we have had every year so that we could be able to start a rebuilding process,” she said. “It will be a long journey for us because there are a lot of things we have to straighten out before we start rebuilding.”

In a letter to the State of Florida Auditor General that detailed the current economic standings of Hawthorne, the City said 2012 is expected to be the break-even year for the budget.

However, there is still a $1.12 million deficit between the enterprise and general funds. Commissioner William Carlton said he believes more action will need to be taken to reduce the deficit.

“We are shortchanging ourselves by not trying to get enough taxes in to start reducing this deficit we have,” he said during the meeting.

Hawthorne will continue to be considered in a state of financial emergency until the deficit is corrected.

City commission members met on Aug. 2 to announce the millage rate proposals. On Sept. 8, they adopted the preliminary millage rate of 5.3194 mills.

In anticipation of its annual audit, Vause said the city has completed five of eight balance sheets to close the 2010/11 fiscal year.

“We are really doing a whole year’s worth of bookkeeping in two months,” she said.

City Commissioner William Carlton said he hopes the new budget can aid the current deficit.

“We still got a $1.12 million deficit between our accounts here. Somehow, we have to get money from somewhere to pay for this.”

Candidates Bob Barnas, Linda Clark Gestrin, Mayor Larry Travis and Vice Mayor Byran William were invited to attend. Barnas and Gestrin have confirmed their participation.

These are the four candidates running for the two expired commission seats. Travis and Williams currently hold the seats.

The event will begin at 7 p.m. The public is encouraged to attend.

This is the first time the Gainesville Tea Party has hosted a forum for High Springs Commission candidates.

The High Springs New Century Woman’s Club will hold its forum on Oct. 25.

The city election will be on Nov. 8.

The commission had interviewed Judith Jankosky on Sept. 15, the last candidate for the position. The search, which started out with 47 candidates, was narrowed to a list of six hopefuls.

Out of that six, four dropped out due to the salary offered. The commission decided at the Aug. 25 meeting to publically interview the last two candidates, Jankosky and Terry Leary, after they both had individual meetings with each commissioner.

However, Leary took a job at another city.

Commissioner Sue Weller expressed concern should the city hire Jankosky without interviewing other candidates. She said she was impressed with Jankosky’s background and knowledge, but did not feel comfortable focusing on one candidate at this point.

“We don’t know at this point if there’s a candidate out there that would be available, that would meet our qualifications, that might be a better fit,” she said.

Mayor Larry Travis agreed with Weller. He said he was unsure that Jankosky had the necessary ability to come before the public and put together a plan of action.

“This position is very, very important,” he said. “So I feel it’s advantageous for us to go forward in looking for other individuals to fill this seat.”

The position will be advertised again, seeking another round of new candidates. Once the city has a list of applicants, Paul Sharon, a “Range Rider,” will review the individuals.

The Range Riders is a group under the auspices of the Florida City and County Management Association. They offer free guidance to cities in the search for city managers, using former city managers as counselors.

The new advertisement will include the salary for the position, set at $50,000 to $72,000. This additional information is at the request of Commissioner Eric May.

He suggested this in light of the city losing two-thirds of its candidates after announcing the salary. After an unsuccessful five-month search, he does not want to see the city follow the same procedures.

“We don’t do this everyday, as Mr. Sharon pointed out,” May said. “I don’t want to see us use the exact same process and get the exact same results.”

Vice Mayor Byran Williams reiterated that the salary must be mentioned at the beginning of the process. Commissioner Dean Davis did not attend the meeting.

City Clerk Jenny Parham will stay on as interim city manager while the city continues its search to replace former city manager Jim Drumm, who resigned last October.

At Monday night’s regularly scheduled commission meeting, commissioners also approved keeping the property tax rate the same as the last two years.

The final millage rate, which will be used to calculate city property taxes in the 2011 tax year, will be 5.5000 mills. At 5.5000 mills, taxes for a property worth $100,000 would be $550.

The ad valorem taxable value has decreased for properties in the city, meaning the commission would have to adopt a roll-back rate of 6.0242 mills to generate the same revenue as last year. Instead, in maintaining the 5.5000 mills rate, there will be a $368,582 decrease in property tax revenue coming into City coffers.

The commission expressed a desire to maintain the 5.5000 mills rate to provide tax relief for residents. Resident Donna Hope, who was attending the meeting, thanked the commission, saying, “We all need this break.”

The city expects the public service tax revenue, which increased by almost 26 percent, to offset the hit from the millage rate, bringing in about $300,000 in additional income.

Although the FY 2011/12 budget is $3.2 million less than the FY 2010/11 budget, city officials expect similar operating costs in the coming year.  The primary reason for the budget decrease is the completion of the city’s wastewater treatment plant, a $20 million facility.  With the construction finalized it will no longer be an additional expense to the budget.

The City will be funding two new programs this year to help alleviate the disrepair of city-owned roads.  A road resurfacing program budgeted at $152,000 will be used to repair crumbling roads that need asphalt.

An additional $45,000 was budgeted for a “chip-seal” program to surface some unpaved roads with a gravel-type asphalt mix, reducing the maintenance of those roads.