McAlester News-Capital, McAlester, OK

Breaking News

Local News

February 18, 2013

McAlester city manager says city could face more than $1 million shortfall

McALESTER — City Manager Pete Stasiak has enacted a hiring freeze following the report of decreasing revenues for the city of  McAlester, which could amount to more than a $1 million shortfall by the end of the current fiscal year.

Stasiak made the remarks during his city  manager’s report during the regular Tuesday night meeting of the  McAlester City Council, held in the council chambers at City Hall. He delivered his remarks about an hour after Mayor Steve Harrison’s State of the City Address, in which Harrison said things were “improving” for the city of McAlester.

Stasiak said city revenues have been declining on an average of from 1 and a-half to 3 percent for about five months. Sales tax revenue for the month of December was down, compared to the same time last year, he said.

“We’re $133,000 short in sales tax for December,” Stasiak said.

“This poses a significant problem for us,” he continued.

The trend continued in the following month, he said.

“We are down another $108,000 for January,” Stasiak said, adding that’s a 9 percent drop.

Referring to declining city revenues, Stasiak said “It’s attributable to a number of reasons.”

“We’re going to have to react quickly,” the city manager said.

Going by the trend over the past few months, Stasiak said “We’re looking at $1.1 to $1.2 million shortfall in revenue by June of this year. The current 2012-2013 Fiscal Year is set to end on June 30.

“Effective immediately, I have a memo announcing a hiring freeze,” Stasiak said.

“Critical needs will be met on a case-by-case basis.”

Stasiak doesn’t believe at this point that the shortfall in revenues can be made up simply by cutting expenses.

“This has gone from something we could manage on the expense side to a much larger problem,” he said.

In addition to declining revenue from sales tax collections, Stasiak said city water sales are down and the city has not been receiving as much from gas well royalties on city property

Stasiak indicated the city staff is looking at a number of options which can be considered.

“People are working on solutions,” he said.


For more on this story, see the print or electronic editions of the McAlester News-Capital. Click here for print edition home delivery or click here to see the Smart Edition for your computer, tablet, e-reader or smartphone.

Text Only | Photo Reprints
Local News
Seasonal Content
AP Video
Raw: Air Algerie Flight 5017 Wreckage Virginia Governor Tours Tornado Aftermath Judge Faces Heat Over Offer to Help Migrant Kids Kerry: No Deal Yet on 7-Day Gaza Truce Kangaroo Goes Missing in Oklahoma More M17 Bodies Return, Sanctions on Russia Grow Gaza Residents Mourn Dead Amid Airstrikes Raw: Deadly Tornado Hits Virginia Campground Ohio State Marching Band Chief Fired After Probe Raw: Big Rig Stuck in Illinois Swamp Cumberbatch Brings 'Penguins' to Comic-Con Raw: Air Algerie Crash Site in Mali Power to Be Restored After Wash. Wildfire Crashed Air Algerie Plane Found in Mali Israel Mulls Ceasefire Amid Gaza Offensive In Case of Fire, Oxygen Masks for Pets Mobile App Gives Tour of Battle of Atlanta Sites
NDN Video
Big Weekend For Atlanta Braves In Cooperstown - @TheBuzzeronFox Chapter Two: Becoming a first-time director What's Got Jack Black Freaking Out at Comic-Con? Doctors Remove 232 Teeth From Teen's Mouth Bradley Cooper Explains His Voice in 'Guardians of the Galaxy' Deja vu: Another NYPD officer choke-holding a suspect 'Fifty Shades of Grey': Watch the Super Sexy First Trailer Now! Reports: Ravens RB Ray Rice Suspended For 1st 2 Games Of The Season Air Algerie plane with 119 on board missing over Mali Diamond Stone, Malik Newman, Josh Jackson and others showcase talent Free Arturo - The World's Saddest Polar Bear A Look Back at Batman On Film Through The Years LeBron James -- Dropped $2k On Cupcake Apology ... Proceeds To Benefit Charity Snoop Dogg Says He Smoked Weed at the White House Raw: Fight Breaks Out in Ukraine Parliament Chris Pratt Interrupts Interview To French Braid Intern's Hair Shirtless Super Mario Balotelli Dances While Ironing - @TheBuzzeronFOX Whoa! Watch "Housewives" Star Do the Unthinkable LeBron apologizes to neighbors with cupcakes Justin Bieber In Calvin Klein Underwear Shoot

Click HERE to read all your Parade favorites including Hollywood Wire, Celebrity interviews and photo galleries, Food recipes and cooking tips, Games and lots more.