NEW IBERIA, La. (KLFY) – As city officials prepare to adopt a new budget in New Iberia, sales tax dollars have taken a dive.
And this isn’t the first time that’s happened in the Queen City.
In New Iberia, sales tax revenue is down about 7% going into this next fiscal year, although that is 7% seems like a small figure, it adds up to about $917,000.
A struggling oil and gas economy is mainly to blame for the decline in revenue.
Fortunately, New Iberia Mayor Hilda Curry says the $3.5 million general fund has been able to make up for the loss.
“But certainly we can’t continue to rely on (General) fund balance,” the mayor said.
Mayor Curry says department heads have been very conservative with their budgets, even making cuts in some areas but not to staff.
“There will not be any cuts or layoffs this year,” she added.
In fact, the council approved a 2% pay increase for all city employees.
Which the mayor explained isn’t necessarily a raise, but a cost of living increase.
“Considering the challenges with these economic times, the city of new Iberia he’s doing very well. We’ve made quite a few cuts in prior years and have just been trying to live within our revenue stream,” Curry said.
The mayor said although they have had to dip into the general fund over the years, that’s what’s it there for, to be used in any area of the city that is in need.
The council plans are to adopt the budget on Tuesday, and it will go in to affect in November.
The meeting will be begin at 5:30 tomorrow evening in the New Iberia City Hall council chambers.