In September, auditor Richard Seal told the council that the 2009 budget was based on a 2008 budget that ended up with a $1.3 million deficit, which was $888,770 more in the negative column than projected. He also pointed out that it is against state law to have a deficit at all.
Seal recommended that the 2009 budget be amended to reflect the additional six figure deficit.
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City Administrator Jerry Bailey and staff have been working on that, and the amended version was up for adoption Tuesday.
In a letter to council members included with the document, Bogalusa Mayor Mack McGehee outlines how the city found “excess revenue and other financing sources over expenditures of $1,465,770, resulting in a positive General Fund balance of $105,910.”
In general, “total revenues for the 2009 Revised Budget are anticipated to increase 2.5 percent or $203,320, largely due to the obligation of FEMA reimbursements for hurricanes Katrina and Gustav, and more grant funding during 2009,” he wrote.
But the $100,000 awarded in the Louisiana Construction Code Grant has been eliminated because the city is no longer performing the functions associated with that grant, said McGehee.
Under the revised budget, total expenditures decreased by 1.2 percent or $117,320, he said.
McGehee later stressed that the amended budget reflects projected finances.
The points the mayor refers to in the letter include stabilizing and cost-cutting as well as revenue enhancement measures.
He said that although health insurance costs rose to more than $250,000 in 2008, there was no increase in that expense in 2009, and that fuel prices and utility costs were significantly lower in 2009 than in 2008.
The city has “made headway” in reducing fuel costs by about $3,500 a month by parking “take-home” cars, said McGehee. And the cell phone bill has been cut in half, he said. Travel expenses were cut, for a savings of $30,000, and the summer worker program was cut for an additional savings of $30,000, said McGehee. And the cancellation of the normal November distribution will save the city close to a half a million dollars, he said.
Vacant positions in the Public Works and Finance departments are not being filled in an effort to curb the salary expense through attrition, and the city’s delinquent collections procedures have been strengthened, resulting in increased collections and better cash flow, said McGehee.
On the revenue enhancement side, the mayor wrote that a $5 increase in court fines should generate about $10,000 a year to help cover police witness fees, which have doubled in the past two years due to state legislative action, and that a planned amnesty program is expected to bring in about $50,000.
A recent sewer rate increase is projected to bring in more than $600,000 annually; a franchise fee increase should generate an additional $75,000 a year and an additional $100,000 in property tax revenues is expected since the city millages were “rolled forward,” said McGehee.
Additionally, based on a Washington Parish Sheriff’s Office audit, the sales and use taxes are projected to increase by 1 percent over the original budgeted amount, he said.
Those and other measures, changes and adjustments will hopefully enable the city to stay out of the red, said McGehee.
Comments
Madd 2 wrote on Oct 30, 2009 4:40 PM:
Edmond Chandler wrote on Oct 29, 2009 12:29 PM:
"I agree with Marcus and Mr. Chandler, I AM NOT BUYING THIS "STUFF"
Thank you, "disgusted", join the "disgusted club!"
... you should be disgusted ... you should be ANGRY!
... only then will people demand change and only then Bogalusa can move forward!
BOGALUSA NEEDS COMPETENT LEADERS! "
jason wrote on Oct 29, 2009 7:59 AM:
I think my Dad would be ashamed of what goes on in city hall now.
we need more people to uncover the wrong in city hall.
thank you Mr Chandler for shedding light on the important issues ... like honesty in city government. and waste of taxpayers money by our mayor. "
DISGUSTED wrote on Oct 29, 2009 7:28 AM:
so much "CREATIVE WRITING" of the city budget!
I agree with Marcus and Mr. Chandler, I AM NOT BUYING THIS "STUFF"
You insult our intelligence, Mr. Mayor.
Bring in an outside auditor to audit the books!
just HOW DEEP does the corruption go in City Hall? "
Edmonde Chandler wrote on Oct 27, 2009 11:18 AM:
VOTERS: I hope YOU are as DISGUSTED as I am with these POLITICIANS.
How much longer can Bogalusa stay AFLOAT with so much corruption in City Hall?
City Hall should HANG IT'S COLLECTIVE HEADS IN SHAME!
The Mayor ... City Council ... all inclusive!
VOTERS: ASK QUESTION BEFORE YOU DECIDE WHOM TO VOTE FOR NEXT ELECTION!
Don't re-elect dishonest people, as we have done too often in the past! "
Edmonde Chandler wrote on Oct 27, 2009 10:40 AM:
" If you can't startle 'em with brilliance, baffle 'em with Bull___t
Marcus is correct! If we believe this, Our Mayor GROSSLY underestimates the voters intelligence! SHEESH!
CONGRATULATIONS, Mr. Mayor ... you are doing a great job of BAFFLING US WITH BULL___t!
I am not buying any of your explanation!
Remember this come next election, Folks!
YEP, time to change oil in City Hall!
100% CHANGE ... no more "smoke and mirrors"!
VOTE for HONEST LEADERS! Vote to RECALL these people. "
Just Me wrote on Oct 27, 2009 10:32 AM:
Marcus wrote on Oct 24, 2009 2:43 AM:
sensiguard wrote on Oct 23, 2009 3:21 PM:
Thanks for sharing about Figure gas cost.
Thanks for the great reading, we buy gold bullion in a recession. I will pass this on to our ira clients to read
gold bullion "
Mayor Math 3 wrote on Oct 23, 2009 1:45 PM:
3. How many taxpayer dollars have been wasted over the years on illegal personal use of these vehicles?
4. Cell phone bill cut in half?
Will the tough questions ever get asked to this administration so fair reporting of the facts not the same ole accept the smoke screen that they fan at you gets put into print?
Do the math! This isn't a trick as Mr. Seal the auditor explains, it's about real money derived from the taxpayers in the City of Bogalusa and the administrations expenditure of these funds which just doesn't add up!! "
Mayor Math 2 wrote on Oct 23, 2009 1:25 PM:
So the average daily taxpayer paid "take home" usage for these 20 now parked vehicles would have been 70 miles per day or 35 miles per trip to City Hall!
So the questions that should be answered:
1. How many "take home" cars got parked? (More = fewer miles per day, Less = greater miles per day)
2. How do you explain these mileage numbers for "take home" vehicles if the ordinance that mandates city paid employees must live within the city limits is enforced? "
Mayor Math wrote on Oct 23, 2009 1:11 PM:
Figure gas cost average of $2.50 per gallon would be 1,400 gallons of fuel. Average fleet fuel economy is 20 miles per gallon which means that the taxpayers were paying for approximately 28,000 "take home" miles per month.
So let's assume that the Mayor has parked 20 "take home" vehicles that were driven for 20 days the average number of work days in a month for city employees with "take home" cars. Continued in Mayor Math 2! "
Marcus wrote on Oct 23, 2009 12:37 PM:
Malfeasence... wrote on Oct 23, 2009 12:32 PM:
A true audit of expenses needs to be conducted in Bogalusa just like the one performed in Mandeville that has resulted in the mayor resigning and federal charges pending due to malfeasence, misappropriation and misuse of public funds by city officials.
By the way, the common practice of city officials using taxpayer "take home" vehicles for personal use is illegal and considered theft of public property. "