PASCAGOULA, Miss. (AP) — A Mississippi city says it's laying off 10 full-time employees as it struggles with a $14 million shortfall.

News outlets reported that officials in Pascagoula said the layoffs will take effect Sept. 1.

A recent audit uncovered the shortfall. The auditor told city council members that nothing indicated money had disappeared or that anyone personally profited.

City manager and attorney Ryan Frederic said Pascagoula will have to raise taxes to deal with the shortfall. City leaders are expected to make a decision on an increase in the next few weeks. The tax increase proposal would add about $170 on a $200,000 home

Mayor Dane Maxwell has suggested the city could sell some public parks that could be used for development to raise some money.