By Trent Moore
The Cullman Times
CULLMAN —
Steve Carter, and his fellow co-owners of The Shops at Third Street Promenade, have faced some unique challenges to keep their new Cullman business afloat in the sluggish economy — but they’ve made it work.
“It may seem counterintuitive, but if you can survive now, then when things bounce back, you’re there,” Carter said. “But, we’ve all had to make some sacrifices.”
With their local art shop only eight months old, Carter said he and his partners are striving to keep overhead expenses as low as possible throughout the first year. Carter runs with the business with his wife Stacie, as well as Gene and Carol Green.
“With us, one of the things we have going is we do things on commission with the artists, so we don’t pay up-front for inventory,” Carter said. “We also don’t really have any employees, and just each take our turns working. Even doing that we’re struggling, but we’re still here.”
The Promenade is one of a few unique, local businesses that have been born out of the current economic recession — a malaise that could be on the verge of a turnaround in Cullman County, if economic indicators are correct.
Both city sales tax revenue and the county unemployment rate have shown improvement, according to the latest estimates. Cullman County finally dropped back into a single-digit unemployment rate the past two months, with 9.4 percent in May and 9.6 percent in April. The local rate has been above 10 percent for the past several months. The county is also below the state average of 10.8 percent, and one of the lower counties in Alabama.
“We’re one of the lowest in the state, so even when numbers are high for us, we’re generally on the lower end,” Cullman Economic Development Assistant Director Dale Greer said. “The drop is kind of reflective of what we’re seeing, where some industries are hiring back employees, but just still not at the level they let them go. Plus, some existing companies are considering expansions, so we are seeing some activity.”
Sales tax revenue within the City of Cullman has also improved, with the latest estimates showing a slowdown in the ever-present decline.
Revenue was only down one percent in the second quarter, compared to eight percent in the first quarter. Year-to-date, sales tax was down approximately five percent, while general fund revenues broke even.
Judging by the numbers, city accountant Wes Moore said the economic slowdown could be coming to an end.
“At least locally, the recession might hopefully be heading for a stop,” he said.
City deals with reduced revenue
To meet the reduced revenue amounts this year — but still continue to serve residents — city council and finance committee member Jenny Folsom said city officials have taken great pains to trim expenses.
“The general fund expenses were down 14 percent because of cuts in spending, not services,” she said.
Moore said a moratorium on new departmental equipment has been in place the past year, which has contributed significantly to the savings.
“We’re just trying to keep capital items on an as-needed basis,” he said. “Basically, departments are operating with the same equipment as last year.”
Overtime has also been reduced, and vacant positions within the city are being filled with employees paid at entry-level salaries.
With the sluggish economy still an issue, Moore said planning is already underway for the 2010-2011 budget.
“We’ll start toward the end of June,” he said. “It’s going to be a tough budget process, because revenues are still not near where they were two years ago.”
But, cuts made in the past two years — including the consolidation of the public works department and city planners office — should make a difference going forward.
“Next year the budget process should be easier, due to cuts in spending that have been made in the previous two budget cycles,” Moore said. “The fact that the economy has not continued to decline any further should also help.”
‰ Trent Moore can be reached by e-mail at trentm@cullmantimes.com, or by telephone at 734-2131, ext. 225.
