Organizations that received money from Pell City last year will likely get the same amount in next year’s budget, but Mayor Bill Hereford said the city cannot make any guarantees.

“This city is in a real hole, financially,” he said during two days of preliminary budget meetings.  “I’ve never lost my enthusiasm or belief that we’ll get out of it, but it may be one or two more years before we do.”

Pell City’s 2010-11 budget is expected to be approved in September, prior to the start of the new fiscal year on Oct. 1.  Officials representing such agencies as the St. Clair County Economic Development Council, KidOne Transport, Pell City Chamber of Commerce, Pell City Animal Shelter and CEPA made their budget requests to city officials late last week, hoping that getting them in earlier in the process will preclude cuts some groups suffered last year.

“We want to give you as much as we can, but we have to divvy up what we have in a way that will keep the city solvent,” Hereford told Helen Powell and Jo Mitchell of the Animal Shelter, who asked for $40,000 from the city.  The animal shelter was allotted $22,000 in the current budget, and the mayor and Councilwoman Dot Wood said they hope the city can give it at least that much in the upcoming fiscal plan.

Hereford made a similar pledge to Kathy McCoy and Carol Pappas of the Pell City Center for Education and Performing Arts, which asked for at least the $17,500 allotment it received last year.

CEPA memberships, a significant source of annual revenue, have declined by 25 percent since October 2008, McCoy said, adding that the center has “scraped and begged” to build a $61,000 reserve that could cover expenses for six months.  The animal shelter currently has a $25,000 reserve, which is equal to about two months’ expenses, according to officials.

“When you ask for money, we expect that you need it,” Hereford said.  “We’re going to give you all we can give you and still be financially responsible.”

The mayor added the city’s revenue has increased during the past two years, but, since the financial crisis of 2008, “our expenses are totally out of sight.”  Prominent among the city’s recent expenses is the $1.1 million purchase of one acre of the former Avondale Mills property for continued use as a water well for the city.

“We fixed it at great cost,” Hereford said.