Havelock starts budget process amid sequestration concerns

Published: Monday, March 11, 2013 at 07:19 PM.

"People have less discretionary income so they’re not buying the DVD at Walmart. They’re watching the one they already have," Tillman said. "It may be that they are not eating out as much, and they’re cooking more at home."

Tillman said the expected furloughs to Cherry Point civilian workers are expected to continue through September, when city property taxes are due. Property taxes account for 42 percent of the city’s budget revenue.

Residents are not considered delinquent on their taxes until January, so the impact may not be felt until 2014.

It depends on how long sequestration lasts, she said.

"If it lasts the 22 weeks they are talking, then all of the effects are much more magnified. I’m really concerned," Tillman said.

Revenue from franchise taxes, such as those attached to cable and phone bills, could decline as residents decrease or drop services, Tillman said. The city could also see less Powell Bill money generated by the state gasoline tax as residents drive less. That money from the state is used for street, sidewalk or drainage projects in the city.

Tillman said low interest rates on money the city keeps in the bank means less revenue as well.



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