ORANGE BEACH, Ala. — First quarter revenue numbers are in and not looking good for the city of Orange Beach. When compared with the same quarter over the past two years, the numbers are down considerably.

In 2007, first quarter sales tax revenue was around $1.8 million, dropping to approximately $1.4 million in 2008. For 2009, the figure is at $1.25 million.

“Obviously this is not a good trend for Orange Beach,” said Al Bradley, Orange Beach Planning Commission chairman. “We will keep monitoring it through the year and be diligent.”

The lodging tax has been flat for the past three years, with revenue just under a half million dollars. Bradley said that while the Convention and Visitors Bureau is projecting an increase in tourists, the dollar amount per room per night is going down, so there is still some uncertainty as to what summer is going to bring.

While it appears on paper that property taxes are up considerably, Bradley explained that the statistic is partially skewed.

“The county did not send bills out until late in December, therefore, the money that did come in we would normally have received at the end of last year,” Bradley said. “So if you take that money out of the first quarter figure, we are about flat on property taxes also.” 

Bradley said the numbers showed franchise fees up, business licenses doing well and money from building permits flat.

If the first quarter is any indication of the rest of the year, Orange Beach could wind up in the hole about $50,000, which Bradley said would be wonderful.

“The bottom line from our revenue report is that we are not dying, but there is no reason to be overly optimistic,” Bradley said.

The bright spot of Bradley’s report to the City Council was in the area of first quarter expenses. In every department, from administration, finance and police, to street, landscape, library and parks, all units were under budget.

“Every department head in the city is doing a wonderful job of saving money,” Bradley said. “At the end of the first quarter we are $600,000 under budget on expenses, so our department heads have done a wonderful job.”