Covering Houston County: City of Dothan Dealing with Slowing Economy

Dothan, AL (WSFA) --  When you look at the construction going on in Dothan, the cars that pack the streets, drivers filling up at the pumps, it's hard to imagine we're in an economic slowdown.

The image of Dothan paints a different picture, however.

Regardless the city's manager is watching the economy carefully.

"We're cautiously optimistic, but we monitor are finances on a monthly basis," said Dothan city manager Mike West.

Whether it's the mortgage crisis, the slowdown in residential construction or the soaring gas prices, the city says these issues aren't falling on deaf ears.

In fact their making sure they don't over extend their means.

"We're going to make sure that the city is financially secure and we're not going to spend any money that we don't have," said West.

West says so far, the city's sales tax revenues continue to grow at a rate of about three percent.

While there has been a decline in residential construction starts; commercial development is still active.

"We haven't seen the same decline in commercial build activity of the construction industry, so we feel very fortunate," said West.

However, if the economic climate does erode, West says the city has plans in place to make the necessary adjustments to keep city services on solid financial ground.

Reporter: Daniel Curtis