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EDITOR’S NOTE: Last week, The Llano News ran a front page story on the local economy, quoting some local business leaders on their perspectives about it. This article continues that discussion.

As holiday shoppers are making their final purchases today, City Manager Finley deGraffenried agrees with local business leaders that it’s important to support the local store owners during the holiday season.

“These are the people who support the youth sports teams, who serve on the School Board and the City Councils,” he says.

Some businesses are flat, he says he has heard, but others are doing very well. Although he agrees the information is not quantifiable, he says he’s heard that some sectors (restaurants, grocery stores, for example), are doing better than they have been, perhaps as a holdover of $4 a gallon fuel prices.

And at this time, he says, it appears that the city’s sales tax revenue is on track. “We’re not seeing any major increases, but at the same time, we’re not seeing a decline, either.”

Figures are based on the last fiscal report, which concluded Oct. 1, just after the national economy started showing major slides. Still, he says “Based on what we’re seeing, we think we won’t see any major decline in sales tax revenue.”

Of the city’s $11.3 million budget, sales tax revenue makes up less than six percent of the budget (about $650,000). Property taxes account for about five percent; the majority of the city’s budget comes from income from city-owned utilities. “They help stabilize and diversify our budget and income,” he says.

All those revenues, however, are closely linked to a healthy local business economy.”If our local businesses are prospering or at least holding their own, and employing local people who also are paying various taxes, then our public revenues will more easily support local needs. Everything is interrelated,” says deGraffenried.

“We’re cautious, though,” he says. After the first of the year, City Council, department heads and staff will hold a workshop to discuss any possible impacts to the city’s budget if revenues fall. About 12-15 persons will attend, going through “what if” scenarios. “We’ll ask: If revenue is not realized, what’s next? What’s the trigger?”

deGraffenried says the city has not put off any projects as of this time, but if a downturn in the local economy impacts the city budget, they’d look at putting off some projects, or delaying some equipment upgrades. “We would make adjustments that hopefully would not impact the level of service” to city residents, he says.