SLIDELL, La. (AP) — Slidell Mayor Freddy Drennan has warned city workers about possible layoffs beginning in January because of an unexpected slump in city sales tax revenues.

Drennan tells The Times-Picayune he met with many of the city's 300 employees on Tuesday and notified them that jobs may be cut if the revenue decline continues.

For the current fiscal year, the city has a $43 million budget, including $17.9 million in budgeted sales tax revenues. Sales tax revenues are now hovering between 4 and 5 percent below what was expected, creating a possible $1 million shortfall.

Drennan said he hopes to avoid layoffs by not filling positions vacated voluntarily or through retirements. He said he knows of several people who do plan to retire soon, but layoffs remain on the table.