Planned closing of the
Hellpit mine in two weeks will cost 1,000 jobs and force Prosper officials to
revise the town’s budget.
“With the mine closed, our revenue is just about
gone,” said Mayor Lester Jenkins.
City Clerk Wilma Foster said coal-severance tax revenue
from the mine will decline for a high of $125,000 to $60,000 for the next
fiscal year, which begins in 30 days. Revenue will continue to come with
depletion of coal stockpiles.
“This will cover essential services like police
protection and utilities at city hall and the new ball park,” Foster said.
The City Council will work on a revised budget
at its meeting tomorrow night.
Councilman Ed Barnes said the city is fortunate
that most of the tax revenue from the mine went to building projects.
“And we’ve got the city hall and the park paid
for, so, at least, we’re not in debt,” Barnes said.
Union Coal Co. announced yesterday that Mine No.
3 or Hellpit, which opened in 1901, will close for an indefinite period.
Company officials, in a prepared statement, said
closing of the mine resulted from a serious cutback in demand for coal because
of a downtown in manufacturing nationwide.
Wilson Standridge, company president, said in
the prepared statement: “We hope to see an increase in demand, but until we do,
the mine will remain sealed.”
The mining operation has brought jobs to
surrounding communities as well as to Prosper, which officials said has a total
population of 909.