Cherokee County Assistant Administrator Holland Belue knows one thing for certain: Next Monday, county officials will present a balanced budget to Cherokee County Council.

How council chooses to balance a $700,000 shortfall as a result in a cut in state funding is when things become more unclear.

Belue said the administrative staff will present a budget on first reading that bridges the shortfall with cash reserves. On second and third readings, council will have the option of balancing the budget by reducing expenditures, raising taxes or borrowing from the fund balance, Belue said.

Council also could choose to do a combination of the options according to Belue.

"This is council's decision," Belue said. "But they will be presented with options."

If council does opt to raise taxes, the hike can't exceed the consumer price index and economic growth under state law. Belue said that would cap the tax hike at about 4 mills.

Council will consider first reading of the proposed budget on Monday, May 18.

The new fiscal year budget goes into effect July 1.