No one with the City of Pauls Valley is ready to say the recession is over for them, but financial numbers indicate hope can still be found.
Before next week’s council meeting a budget workshop will be held to determine what else can be done to relieve future problems like those created by a sales tax revenue decrease of $353,000 this year, said City Manager James Frizell. This is attributed to a decrease of $8,268 per penny less than this time last year, which amounts to a drop from $97,000 to about $89,000.
If anything positive can be found, it is the fact that the city is only down $5,000 compared to last month, said Frizell. It is less than previous months where revenue dropped as much as $20,000 or $70,000.
However, the city has already budgeted nine percent less for the fiscal budget next year and it will mean that there will not be any new salary raises for the year, said Frizell. As things stand, salaries or positions will not be cut, but if revenues take another dive then those results are not out of the realm of possibility.
Supervisors with the city have been notified that expenses and other areas will have to be reduced at least four more percent next year from current levels to balance the budget, said Frizell. Fortunately reserves have been there to cover the downturn and though expenditures still exceed revenue the city is $155,000 to the good for the year to date.
“We’re certainly not ready to say we’re out of the woods yet and I don’t think anyone right now can predict an end,” said Frizell. “The numbers you see right now are the numbers you will see next year.”