East Ridge is projected to end its 2011 fiscal year with a deficit of more than $600,000 and could face another if it doesn't generate more revenue or cut services next year, according to city manager Tim Gobble.
"We've increasingly sought to cut down costs, but rising costs in health care, fuel and utilities continues to eat away at us," Gobble said.
If the deficit is not eliminated, it would be the city's third straight year with a deficit in the $600,000 range.
The city is also owes $8.8 million in debts, according to budget worksheets.
During the meeting, Gobble outlined a series of revenue options, including a property tax increase and a hotel/motel tax increase.
For more information, read Wednesday's Times Free Press