Garner is anticipating a revenue shortfall of approximately $625,000 for the 2008-2009 fiscal year, according to recent estimates released by the town.
Most of the gap is attributed to reduced sales tax revenue through the first five months of the fiscal year. About $100,000 of that total stems from expected declines in construction and development activity.
The estimate represents 2.4 percent of this year’s 25.7 annual operating budget.
To prepare, the town is scaling back on expenditures both large - $1.7 million toward expansion of police space - and small – moving the annual retreat to Holly Springs from Wrightsville Beach. Town Manager Watkins says Garner has about $2 million in cash available to offset a revenue gap.
“Right now, I feel good about our situation,” Watkins said Tuesday. “As we go forward, that could change.”
Like others at Town Hall, he is waiting to see whether the state will pull state collected local revenues from municipalities to contend with their own shortfall. Those funds represent nearly 30 percent of the town’s budget.
In 2001, the governor pulled some funds from local entities. Several Council members who were on the Board at the time have cited the incident as justification for spending cautiously during recent months.
