KENNER, La. -- At Conrad's Music and Gifts on Williams Boulevard in Kenner, owner Charles Conrad knows all too well what being in a recession is all about.
"It's very tough," he said. "We have a lot of merchandise, but there's nobody to buy it."
When compared to last year, Conrad estimates his business is down by nearly 75 percent. It is a brutal decline that has him struggling to stay afloat.
"I think the people don't have jobs, don't have the finances to spend and that's a lot of it," Conrad said.
Those economic effects are spreading from beyond Kenner businesses and into the city's coffers. As sales declined in Kenner, so did sales tax collections -- and that is putting a pinch on the city budget. More than half of the city's operating budget comes from sales tax revenues.
"It's just general sales tax is down. I do see people eating at restaurants, so it seems like we should be doing better than we are, but we're not," said Mike Yenni, chief administrative officer for the city of Kenner.
According to the latest monthly sales tax return, in November there was a more than 16 percent drop in sales tax collections when compared to 2008. That translates into a decline of more than $430,000 for just that one month. Kenner has seen its sales tax collections fall for the past 18 months, with the exception of September of 2008, when Hurricane Gustav hit.
Now, the city is trying to encourage its residents to shop locally and help beef up the sales tax collections.
"We've even started a campaign -- "Shop Kenner First," Yenni said. "Whatever you get in Kenner, and you live in Kenner, try to buy locally before you branch out into the rest of Jefferson Parish."
It all comes as the city prepares to tackle next year's budget and looks at how to maintain the same level of city services.
"We're still in the cutting phase. We've cut for the last three and a half years-- and we're still cutting," Yenni said. "We're going to see what cuts we can make for this year's budget coming up for the following year. We just hope we can make through to the end of this year."
One of the big concerns on the horizon for Kenner is an overhaul of the city's sewerage system, which is required to happen so it can be in compliance with state environmental laws. Right now, the city will have to borrow more than $20 million for the project -- money which will eventually need to be paid back.
