EASTHAMPTON, MA (WGGB/WSHM) -- Easthampton residents could soon face higher taxes or cuts to city services as the mayor prepares to push for a tax override.

City officials said spending is outpacing revenue and the gap is a problem. That means tough decisions are coming, possibly within weeks.

Mayor Salem Derby confirmed he will introduce a tax override to prevent service cuts. Right now, the budget deficit numbers have not been made public.

Casey Douglass has lived in Easthampton for 30 years and currently owns Galaxy Restaurant in the downtown area. He is nervous about what is ahead for the town with regards to its budget. “Easthampton is suffering from a long-term history of a lack of taxes,” he said.

The increased costs could affect his business. “It’s probably going to be taken from my sales. People will be forced to pay their taxes (and) be forced to pay for the things that they need to and they’ll have to forgo the things that they enjoy, like restaurants and theater and those kinds of things,” Douglass added.

Douglass said the increased cost of healthcare at the federal level is partially to blame.

City Council President Koni Denham said fixed costs are contributing to the budget pressure. “I think we’re seeing a lot of fixed costs in terms of what it takes to fix our vehicles and things of that nature, so I think there’s a lot of things contributing to this that really fall outside the realm of our day-to-day operations,” she explained.

Denham warned the special ballot question could be voted on sooner rather than later. For now, she told residents to “hold tight” and added, “I think there’s a lot of speculation (and) a lot of assumptions being made online right now that, I think, doesn’t help the conversation and so, I think if they can just hold on for another few days for us to be able to figure out what those numbers are.”

Denham said any potential cuts could come from anywhere, including public safety and the public schools.

In a statement, Derby said the city is facing a June 1 deadline tied to contractual obligations with its schools. “I recognize this may feel sudden, and I acknowledge that the timeline is tight. We are, however, facing a June 1 deadline tied to contractual obligations with our schools. This is not an easy ask and I do not take it lightly, but Easthampton is known as ‘the little city with a big heart’ and for good reason. We are a resilient community, proud of our roots as a mill town. We have faced adversity before and prevailed by standing together. This is another moment for Easthampton to demonstrate who we are and what we stand for,” the statement read in part.

Douglass said he is not afraid for himself. “I’m scared for the others that have been living a little bit more paycheck to paycheck, the ones that were looking to retire without a fallback system. I’m lucky to have invested in the city many years ago,” he added.

The mayor has called on the city council to hold a special meeting to address the situation directly. The next city council meeting is scheduled for Wednesday, April 22 at 6:00 p.m. inside the municipal building, with Denham hoping the mayor has an update on those numbers.

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