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City: Buying local, key to survival
Finance director says smaller retailers finding tough going
Thelma Grimes/San Pedro Valley News-Sun
The Benson economy can survive the tough times, but many in town believe the key to doing that is shopping locally.
Jim Cox, the city finance director, said the city's general fund, which pays for police and fire protection, parks and recreation and administration, has decreased by 20 percent. Those numbers point directly to a slowdown in the economy, taxpayers spending less and more people traveling outside of Benson to shop.
Sixty-five percent of the city's total revenues come from local sales tax collections, and those funds go directly to the general fund.
"If residents have pride in Benson, they should shop in Benson," Cox said. "If they choose to shop outside the city, then others get those sales tax dollars. Business owners here provide a service and allow us to shop locally, and we need to support them."
In a recent presentation to the Benson City Council, Cox reported that the city's top three retailers are doing fine despite the bad economy. That means that the town's smaller retailers are likely the ones being hit the hardest, he said.
Instead of major retailers like Safeway and Wal-Mart struggling, the hotels, restaurants and specialty stores are finding it hard to survive these tough times.
Martha Bersano, regional manager for the Holiday Inn Express, said they are seeing a slowdown, but the hotel, located on State Route 90 just off Interstate 10, is faring well against its competitors. Still, the hotel is looking at a 20 percent loss compared with last year.
Bersano, who also manages the Gas City, Shell Station and the newly-opened Gracie's Restaurant, said all of their businesses have been hit by the economic slowdown that is impacting the city, state and nation.
"Gas has had a slight slowdown," Bersano said. "Gracie's is still new, but a lot of the business we are getting there comes from word of mouth. Because of the slowdown we are watching our spending, and we will likely have to make some budget cuts."
When it comes to where to shop, Bersano said she feels strongly about shopping locally.
"As a business we just have to adjust and make sure what we are doing meets the needs of our local customers," she said.
While the SR-90 businesses are seeing a slowdown, others are shutting down. The Turquoise Hills Family Golf Center recently closed its restaurant doors just off State Route 80, and a few months ago Beaudry Motors closed their doors for good.
Herb Lynn, manager of Turquoise Hills, said the restaurant closed last week for a couple of reasons, one being the economy, and another being the inability to keep a competent staff. Lynn said they are still open for wing night on Mondays and Thursday taco nights, with a part-time staff.
As for the golf course, Lynn said business has probably increased by 50 percent over the last year.
"We have a short course, and a lot of our business comes from retirees on a fixed income," Lynn said.
However, despite success with the golf course, owner Pete Lawson has put the facility up for sale. If not sold by April, he will be auctioning off the course. Lawson will keep ownership of a similar course he owns in Naco.
"In these hard times, is costs a lot of money to keep two golf courses open," Lynn said.
Turquoise Hills had about 33 employees, with six full-time staff members being let go with the restaurant closing and several others being moved to part-time status.
Cox said keeping the Benson economy afloat is not necessarily based on major purchases like a car, but instead on day-to-day spending. With tough times, households are tightening up, and some of that goes to buying fewer groceries, going out to eat less and just saving more.
When it comes to adjusting to tough times, Marla Trepanier, owner of the Medicine Shoppe on 4th Street, said they have worked to offer more services and programs to customers.
Trepanier said despite Wal-Mart's opening a new pharmacy and Safeway's having one, they have been able to weather the tough times.
"I am not that concerned; I feel like we have a good customer base," she said. "We offer some unique services that other pharmacies don't, like diabetic screening, compounding, and we get business from all over the county. The key to surviving this economy is you have to diversify."
When it comes to shopping locally, Trepanier said as business owners, she and her husband, Richard, really try to support other businesses and shop locally.
"Shopping locally is good for us, and it's good for the community," she said.
Dave Stocker, of Economy Sales, said after having some tough sales figures in December, he is thankful that he had a great year last year, and appears to be doing well so far this year.
"December was tough on us just like it was on everybody," Stocker said. "Things are picking up. I feel good about where my business is."
When it comes to local shoppers, Stocker said a lot of his business comes from outside the city, and it seems like a lot of Benson residents buy their farm equipment in Sierra Vista and Tucson.
"I'd like to see more local residents come here, just like every business in Benson would rather them stay here than drive to Tucson or Sierra Vista" Stocker said.
Terry Celentano, owner of the Xpress Lube on 4th Street, agreed that while he charges more for an oil change than companies in Tucson and Sierra Vista, there is more to the service.
Celentano said he is trustworthy, it costs less than paying for the gas and mileage on the car to stay in Benson, and his service is top notch.
"Sure you can get oil changes for $20 all day in Tucson," he said. "But you can't beat the relationship in a small town. We are friends, we are your neighbors, and we are not trying to cheat anyone. This town has supported me, and I do whatever I can to support this town. I absolutely believe you should shop locally."
Celentano said his business is down about 10 percent, which is better than others in the industry.
Besides the local sales taxes that business owners and the city watch closely, Cox said there is also a growing concern with how the state might cut funds.
Cox said 20 percent of the general fund budget comes from the state, or an estimated $1 million.
To fix the state $2 billion budget deficit, Cox said lawmakers have actually considering cutting the entire million in funding to the city.
Cox said the state budget crisis will also affect the city's grant funding for community improvement projects in the coming fiscal year.
Thelma Grimes/San Pedro Valley News-Sun
The Benson economy can survive the tough times, but many in town believe the key to doing that is shopping locally.
Jim Cox, the city finance director, said the city's general fund, which pays for police and fire protection, parks and recreation and administration, has decreased by 20 percent. Those numbers point directly to a slowdown in the economy, taxpayers spending less and more people traveling outside of Benson to shop.
Sixty-five percent of the city's total revenues come from local sales tax collections, and those funds go directly to the general fund.
"If residents have pride in Benson, they should shop in Benson," Cox said. "If they choose to shop outside the city, then others get those sales tax dollars. Business owners here provide a service and allow us to shop locally, and we need to support them."
In a recent presentation to the Benson City Council, Cox reported that the city's top three retailers are doing fine despite the bad economy. That means that the town's smaller retailers are likely the ones being hit the hardest, he said.
Instead of major retailers like Safeway and Wal-Mart struggling, the hotels, restaurants and specialty stores are finding it hard to survive these tough times.
Martha Bersano, regional manager for the Holiday Inn Express, said they are seeing a slowdown, but the hotel, located on State Route 90 just off Interstate 10, is faring well against its competitors. Still, the hotel is looking at a 20 percent loss compared with last year.
Bersano, who also manages the Gas City, Shell Station and the newly-opened Gracie's Restaurant, said all of their businesses have been hit by the economic slowdown that is impacting the city, state and nation.
"Gas has had a slight slowdown," Bersano said. "Gracie's is still new, but a lot of the business we are getting there comes from word of mouth. Because of the slowdown we are watching our spending, and we will likely have to make some budget cuts."
When it comes to where to shop, Bersano said she feels strongly about shopping locally.
"As a business we just have to adjust and make sure what we are doing meets the needs of our local customers," she said.
While the SR-90 businesses are seeing a slowdown, others are shutting down. The Turquoise Hills Family Golf Center recently closed its restaurant doors just off State Route 80, and a few months ago Beaudry Motors closed their doors for good.
Herb Lynn, manager of Turquoise Hills, said the restaurant closed last week for a couple of reasons, one being the economy, and another being the inability to keep a competent staff. Lynn said they are still open for wing night on Mondays and Thursday taco nights, with a part-time staff.
As for the golf course, Lynn said business has probably increased by 50 percent over the last year.
"We have a short course, and a lot of our business comes from retirees on a fixed income," Lynn said.
However, despite success with the golf course, owner Pete Lawson has put the facility up for sale. If not sold by April, he will be auctioning off the course. Lawson will keep ownership of a similar course he owns in Naco.
"In these hard times, is costs a lot of money to keep two golf courses open," Lynn said.
Turquoise Hills had about 33 employees, with six full-time staff members being let go with the restaurant closing and several others being moved to part-time status.
Cox said keeping the Benson economy afloat is not necessarily based on major purchases like a car, but instead on day-to-day spending. With tough times, households are tightening up, and some of that goes to buying fewer groceries, going out to eat less and just saving more.
When it comes to adjusting to tough times, Marla Trepanier, owner of the Medicine Shoppe on 4th Street, said they have worked to offer more services and programs to customers.
Trepanier said despite Wal-Mart's opening a new pharmacy and Safeway's having one, they have been able to weather the tough times.
"I am not that concerned; I feel like we have a good customer base," she said. "We offer some unique services that other pharmacies don't, like diabetic screening, compounding, and we get business from all over the county. The key to surviving this economy is you have to diversify."
When it comes to shopping locally, Trepanier said as business owners, she and her husband, Richard, really try to support other businesses and shop locally.
"Shopping locally is good for us, and it's good for the community," she said.
Dave Stocker, of Economy Sales, said after having some tough sales figures in December, he is thankful that he had a great year last year, and appears to be doing well so far this year.
"December was tough on us just like it was on everybody," Stocker said. "Things are picking up. I feel good about where my business is."
When it comes to local shoppers, Stocker said a lot of his business comes from outside the city, and it seems like a lot of Benson residents buy their farm equipment in Sierra Vista and Tucson.
"I'd like to see more local residents come here, just like every business in Benson would rather them stay here than drive to Tucson or Sierra Vista" Stocker said.
Terry Celentano, owner of the Xpress Lube on 4th Street, agreed that while he charges more for an oil change than companies in Tucson and Sierra Vista, there is more to the service.
Celentano said he is trustworthy, it costs less than paying for the gas and mileage on the car to stay in Benson, and his service is top notch.
"Sure you can get oil changes for $20 all day in Tucson," he said. "But you can't beat the relationship in a small town. We are friends, we are your neighbors, and we are not trying to cheat anyone. This town has supported me, and I do whatever I can to support this town. I absolutely believe you should shop locally."
Celentano said his business is down about 10 percent, which is better than others in the industry.
Besides the local sales taxes that business owners and the city watch closely, Cox said there is also a growing concern with how the state might cut funds.
Cox said 20 percent of the general fund budget comes from the state, or an estimated $1 million.
To fix the state $2 billion budget deficit, Cox said lawmakers have actually considering cutting the entire million in funding to the city.
Cox said the state budget crisis will also affect the city's grant funding for community improvement projects in the coming fiscal year.
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