Board Delays Adding Economic Development Post until Dec. 7; Steels for ‘Ugly’ Holiday Revenues
By Paul Tambasco
City Editor
Garner may be in line for some belt tightening.
At the recommendation of the town manager, board members took a cautionary step last Monday night in delaying the recruitment of an economic development director until at least Dec. 7.
With the hire originally scheduled for September, the delay is one of the most notable cost-saving measures taken by the Aldermen since the nation’s economy nosedived this fall and may be a sign of stockpiling to come.
Leaders pegged the director to lead a three-member economic development department aimed at improving Garner’s image and drawing new residents and businesses from beyond the Triangle. The town allocated funds for the three spots in this year’s budget.
Postponing the hire saves the town more than $6,000 a month in salary and benefits. Likewise, the town elected to wait to decide on hiring a part-time public information officer and a neighborhood improvement manager.
Despite the delay, leaders are optimistic about Garner’s financial situation, monitoring it via weekly meetings. This year the town has mostly kept to revenue projections but officials insist it is too early to know how much tightening is needed.
At the same time, manager Hardin Watkins says Town Hall is prepared to absorb revenue losses partly due to a $2.34 million “cushion” built into this year’s budget—funds originally marked for capital projects like Aversboro Road sidewalks, an upgraded police headquarters and a new Town Hall.
The sidewalk project will likely remain unaffected, he says, but the two public facilities will probably wait until next year if not longer.
“We’re pushing it out farther. In terms of cash flow, it’s just riding out this current financial situation,” Watkins said.
He expects to work the two capital projects into next year’s operating budget without dipping into reserves. But holiday sales are expected to drop nationally and a corresponding drop of local sales tax revenue and also property taxes would not be felt until spring 2009.
To prepare, Watkins offered the board a menu of cost-cutting measures—many undertaken by other North Carolina municipalities—to mitigate the downturn.
The list included hiring freezes, reduced travel and purchasing fuel-efficient vehicles.
“We’re trying to take a proactive approach that says: ‘Okay, this is what we are going to do and we are going to go ahead and have this in place if we do have a shortfall,’” said Lin Jones, the town’s finance director.
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