Commissioners Bill Collins, Mark Cochran and Randy Quick discuss the budget with Rome City Manager Sammy Rich (left).
The parking limit in downtown Rome was changed from two hours to three hours in 2019.
Commissioners Bill Collins, Mark Cochran and Randy Quick discuss the budget with Rome City Manager Sammy Rich (left).
The City of Rome is set to begin the process of putting together its 2023 budgets, but with indications that an economic recession might be around the corner, some city commissioners are urging caution.
According to the gross domestic product estimate from the Bureau of Economic Analysis, the U.S. economy shrank by 0.6% in the second quarter of this year.
In addition, Federal Reserve Chairman Jerome Powell has indicated there may be more interest rate hikes in an attempt to bring inflation under control.
During a city finance committee meeting on Friday, Commissioner Mark Cochran also brought up that bond markets are signaling a pessimistic outlook for the economy. The most recent indication has been an inverted yield curve, where the yield on 10-year Treasury bond falls below the normal yield on a short-term Treasury. An inverted yield curve has preceded every recession since 1956.
Cochran wants to see city department heads come up with a budget they want, and then a budget that is 3% to 5% less.
“I’d hate to go roaring into 2023 without a plan to pull the lever if the economy starts to tank,” he said.
Cochran added if there is a scenario where they have cut the budget, they should get it out of the way now instead of when a recession hits.
“It’s going to hit us,” he said.
City of Rome Finance Director Toni Rhinehart agreed.
“Oh yes, it’s going to hit us. It’s just a matter of when,” she said. “It takes a little longer for the city to feel the effects of a recession. Collection rates will go down. There are some things that will impact us.”
Parking downtown
The parking limit in downtown Rome was changed from two hours to three hours in 2019.
Also on Friday, the finance committee heard that downtown parking revenues are down and expenses are up so far this year.
Rome City Manager Sammy Rich said the increased expenses are the result of the move to license plate reader technology where the city has to pay for the equipment and the use of software.
At the same time, the city went to a 3 hour parking limit downtown, which has resulted in a reduction of fines from parking violations.
Still, Rich said that many believe the parking enforcement program is worthwhile.
“You are turning over spaces downtown, which allows downtown merchants to see more customers,” he said.
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