Mayor Bill White says the city's credit rating remains high, but many institutions that used to loan the city money have gone out of business. And with interest rates going up White wants to decrease spending and borrowing as much as possible until the market returns to normal.
"We have asked all of our departments to scrub their budgets to see if there are other projects that we can push back the spending rate so that we don't have to go into the market and borrow at excessive interests costs."
Mayor White says they've already identified areas where they can save some 20-million dollars.
"We don't want to be telling our citizens that we didn't noticed there was a recession coming down the pike and therefore, we have to raise taxes in order to meet an obligation that we did not defer."
Mayor White says they won't touch public safety, or vital city services, but they're hoping by penny-pinching now when things are tight...Houston will be just fine in the long run.