A lot of cities on the coast are facing a dilemma, in this post-Katrina world. Sales taxes and property taxes are the predominant way any city brings in revenue. The problem is, with some many homes and businesses now gone, the revenue so many municipalities depend on, is also gone.
It's an issue the Gulfport City Council took a look at Tuesday.
Demery Grubbs, is a consultant, out of Jackson, who the city hired to take a look at its financial position post Katrina. He told city leaders that Gulfport is actually in pretty good shape.
According to Grubbs, "The city had a reserve of about $18 million, plus, many of the businesses in the city are still operating."
That's because, many of Gulfport's business are located well north of the beach, and were not heavily damaged by Katrina. Many re-opened, shortly after Katrina, and are enjoying robust business. In terms of sales tax revenue in the city, it is way up, about 60 percent from last fall.
Grubbs predicts the city will be well on its way to a very strong recovery within two years. He predicts that four years from now, there will be major development in the state's second largest city.