There’s little comfort expressed by those who hear that the money crunch is world-wide, except in the oil cartels and the Swiss Bank.

Two weeks ago the British Broadcasting Company reported that Swiss financiers are writing off $10.5 billion in their shortfall on sub-prime housing financing in the United States. Other problems are also causing foreclosures in the real estate scene, and affecting cities from New York to Orange Beach.

Clara Myers of the Orange Beach City Revenue Department said that revenues from local taxes alone are down $3,173,000 from a year ago.  

As is obvious, South Baldwin has its own peculiar situation in the matter of going from building boom, with the concomitant revenues, to a real estate inactivity. Philosophy at one time said that “Everything is connected with everything else,” and South Baldwin is feeling it now.

Municipalities have to make adjustments. In the early quarter of 2007 building permits, impact fees and construction fees began a decline. According to Convention and Visitors Bureau report, tourism was up and productive, matching pre-hurricane totals. This was a boost but does not completely solve the shortfall in 2008. 

Myers said that revenues received were approximately $49 million in 2007 and approximately $42 million are anticipated in 2008. It’s hoped that tourism revenue (taxes from sales, alcohol and lodging) will rival the 2007 figures.