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When Galax City Council began work sessions last month for the 2009-2010 budget, the city had a spending plan that required more than $2 million from reserves to balance, but proposed tax hikes and rate increases would close the gap to $550,000.
“This shortfall was the result of a slump in the city’s economy and declining tax revenues, since many larger industries started closing in the early 2000s, and tax rates that had not kept up with inflation or need for capital improvements and maintenance,” said City Manager Keith Holland.
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