Whitfield County: Feeling the pain

DALTON, Ga. — Tax revenues and government services often decline right along with business profits during an economic free-fall.

Whitfield County and its incorporated cities have scaled back as the money coming into governments coffers from fees, fines and taxes has slowed.

Mark Gibson, city manager of Varnell, said city leaders are being cautious about long-range planning in light of a potential lack of funds. The city’s 2009 budget is about 10 percent less than last year, and plans to renovate City Hall or build a new one to replace the current, structurally troubled building have been put on hold indefinitely, he said.

“We’re feeling the hurt like everyone else,” Mr. Gibson said.

Ron Hale, Whitfield County finance officer, said the county is weathering the economic drought, but may have to take more cost-saving measures soon.

“As we briefed the commissioners during the 2009 budget process, Whitfield County is entering this downturn with no debt and sufficient reserves to go through this period,” Mr. Hale said.

He said the county implemented a partial hiring freeze and may resort to employee furloughs by April if revenues keep falling, “But we have not had to resort to any personnel layoffs,” he said.

County leaders looking to save have also delayed several projects, such as the $600,000 project for buildings and installation of lights at the new Westside Park. While that is put off until 2010, recreation officials said the new park’s athletic fields still are scheduled to be completed this year.

Mr. Hale noted that the biggest drop in county revenues has been from sales tax. The county’s total sales tax revenue for November 2008 was $127,000 less than November 2007.

“From 2001 to 2006, sales tax revenues had been growing by about $950,000 per year; 2007 had no growth and 2008 has been averaging a drop of about 5 percent,” he said.

County license and fee revenues have dropped too, mostly due to a 40 percent dip in building permit and inspection fees in the past year, Mr. Hale said. The county’s interest and investment income also is down about 36 percent.

The Dalton City Council moved to deal with sagging revenues by laying off or giving early retirement to more than 40 city employees last year. Officials said the action was due to the economy and a bloated work force.

Tunnel Hill City Manager Blake Griffin said his city is hanging on, but has yet to make any major cuts or delay projects.