HOSCHTON — During their inaugural meeting on Monday, the newest members of the Hoschton City Council wasted no time in addressing two major issues facing the city — the 2010 budget and the city charter.

Erma Denney, Sandie Romer, Jim Higginbottom and Jim Cleveland were sworn in at the Hoschton Depot in front of a crowded room Monday evening.

Denney is the city’s new mayor, and Romer will occupy the Post 1 council seat; Higginbottom, Post 2; and Cleveland, Post 3. Councilman Scott Butler was sworn in last month to fill the Post 5 seat, which was vacated in September by former councilman Tom Walden.

By taking their oaths, the new council also accepted the responsibility of remedying the city’s ongoing financial problems.

Butler has taken charge of reviewing and amending the city’s proposed 2010 budget since taking office. During the meeting, he said the city is currently facing a $115,628 shortfall in its general budget and a $46,470 shortfall in its water and sewer budget for 2010.

For now, Butler said the council has requested that the city operate on a month-to-month basis until February to provide time to gather more information on the 2010 finances.

Denney said financial information received so far is "too vague" to finalize the budget right now, but by January, she hopes to deliver a "healthy update" and return in February with "conclusive decisions."

Butler said some of the anticipated shortfall is a testament to the country’s current economic state.

"Based on what Jackson County is reporting, with a 24 percent reduction in sales tax revenues last month and a 16 percent decline this year, we’ve decided that a 15 percent decrease (in sales tax revenues) for next year is realistic."

Hoschton had anticipated collecting $201,250 in sales tax revenues for 2010, but Butler reduced this to $171,250, a $30,000 difference.

Overall, Butler has reduced next year’s revenues by $106,850, which brings the city’s 2010 general fund income to $517,735. General budget expenses are expected to reach $633,363 in 2010.

While he tried to cut expenses, Butler is also proposing that two reserve funds be established in the general fund to replace city vehicles in the future. If approved, this would establish an $18,000 reserve fund for the public safety department and a $4,000 fund for the public works department.

Near the end of the meeting, Hoschton resident Jon Fisk stood and told the council that as they work on the budget, he hopes they will work together to find a solution.

"You’ve got some real challenges ahead, probably nothing more important than the fiscal responsibility, and it’s going to take teamwork, professionalism, and a hard effort to get things in the right direction."

A majority of the council also voted to table discussions on reviewing and approving the revised city charter until the Jan. 4 meeting.

The council will hold a meeting to discuss the charter at 6 p.m. Dec. 29 at the Hoschton Depot.

Efforts to revise the 90-year-old document began in July with former councilman Jim Jester. The document was sent to Georgia’s Office of Legislative Counsel for review, and last month was returned to the city for final approval.

If Hoschton decides to finalize the revised charter, it must review and readopt the document before returning it to the Georgia General Assembly for approval. If entered and approved, the charter would take affect July 1, 2010.