To solve the city's budget woes, City Administrator Fred Russell recommended to Augusta commissioners today that, along with adopting a list of cost-cutting measures, they begin a push to add an extra penny to the city's sales tax.

Raising the sales tax from 7 cents per dollar to 8 cents would generate an estimated $35 million to $36 million per year. Mr. Russell said that if the new tax could be implemented by next year, property taxes could be rolled back 3 mills.

Commissioner Don Grantham said the first step would be for the commission to pass a resolution asking the city's legislative delegation to pass a law allowing the city to hold a referendum on the tax, which would be termed a Municipal Option Sales Tax, or MOST.

Should that be done during the 2010 General Assembly, a referendum could be held as early as July 20, Richmond County Board of Elections Executive Director Lynn Bailey said.

If voters approved, Assistant Finance Director Tim Schroer said, the tax could begin the first day of the first fiscal quarter 80 days after the election, which would be Oct. 1.

The tax would likely generate about $3 million per month, adding $9 million to the city's coffers next year.

The working budget currently has an $8.6 million shortfall.

Reach Johnny Edwards at (706) 823-3225 or johnny.edwards@augustachronicle.com