SPRING HILL, Tenn. -- According to a report, unless the city of Spring Hill does something drastic it might have to declare bankruptcy to balance its budget.

Video: Budget Concerns May Force City To Bankruptcy

Channel 4's news partners at the Columbia Daily Herald report that without imposing a new property tax or firing a number of city employees, the city's budget won't balance.

The current budget comes in at $21.4 million and offers three projections, two of which would see the city levy a property tax, which it eliminated three years ago.

The city has a budget shortfall in its general fund, which is the money that goes to pay city employees such as police and firefighters.

The rainy day fund is gone and they are left with few alternatives, officials said.

Besides reducing the city staff, the city is thinking about bringing back the property tax they eliminated years ago.

Officials are contemplating a 60-cent tax for every $100 assessed.

This would mean that homeowners would have to pay an extra $150 for a $100,000 home.

Alderman Eliot Mitchell told The Daily Herald that a loss of employees was a "worst-case scenario and an argument for why we need a property tax."

City officials said the reason they are in this position is because the city has grown too fast from 7,000 to 25,000 people in eight years.

They said they can't keep up with the services required of such a fast growing city.

The city aldermen will look over the proposals at a meeting next Thursday and vote on a budget on May 19.

Read The Daily Herald’s full article here.