Marble Falls bracing for budget cuts

MARBLE FALLS, Texas (KXAN) - Beyond the walls of Marble Falls City Hall, concerns are looming about how to cut 20 percent of an already tightened budget.

"We are facing a lot of issues in the coming year, the economy, the homestead tax, trying to keep our infrastructure going with the staff that we have now," said Ralph Hendricks, city manager.

"You have to play the hand you are dealt," said Mayor George Russell.  "A lot of cities are facing this right now."

The city is currently under a hiring freeze, leaving 12 positions unfilled, straining staff to provide basic services.

"A lot of our staff is getting tired and weary because a lot of those positions have been frozen for over a year," Hendricks added.

Hendricks and Russell pointed to declining sales tax revenue as the culprit behind their search for future cost cutting measures like possible layoffs.

A homestead tax exemption for seniors, which if passed would cost the city more than a hundred grand, is also causing headaches.

"If that passes we are going to face some more cuts or added costs to some permits or taxes," Hendricks said.

"That's another $140,000 annually we won't have," Russell explained.

Hendricks said staff has presented the council with budget cut options, including an option to slash funding to organizations.

"It's possible, we hope not to cut funding to any outside agency because we know they're hurting in this economic downturn as well," Hendricks explained.

Councilmembers said they won't make a decision on where to cut funds from until they sit down and review the budget in May.

At that point, they'll decide whether they want to cut funds from organizations, layoff workers or do both.