Sales tax revenue squeezes city budget

Disappointing sales tax collections have city officials squeezing dollars even tighter than normal as the Eunice fiscal year heads into its final four months.
An example at February’s City Council meeting is a timely example.
Police Chief Randy Fontenot proposed to buy two new cruisers. City Clerk Ginny Moody pointed out the current operating statement showed him with only enough money in the proper accounts to buy one -- the amount at issue being less than $30,000, a fairly inconsequential sum in a $15 million budget.
But with overall revenues trailing expenses by about $2.1 million at the end of January, dollars are being watched like suspected shoplifters at Walmart.
Through Jan. 31, the city had revenues of $7.87 million, according to the latest statement of operations, and expenses of $10 million.
While an operating deficit was projected in the current budget, that gap is far larger than Mayor Rusty Moody’s administration and the City Council expected.
Part of the cash squeeze is self-made. Officials decided, before the sales tax dip became evident, to redeem recreation program bonds early, ponying up $1.5 million in September to retire the debt and save interest charges over the long haul.
Without that payment, the operating deficit would be around a half million dollars -- still large, but more manageable.
General Fund revenue for the first eight months was $3.44 million, with General Fund expenses at $3.88 million.
Sales Tax revenue was $2.58 million (compared to a budgeted $4 million), with Sales Tax-funded expenses at $4.21 million.
Utility Fund income totaled $1.85 million and expenses were $1.94 million.
The Liberty Theater Fund realized $26,000 and spent $29,000.
On the General Fund side, police and fire personnel costs continued to be a fiscal challenge. Wages and salaries are under budget, due to shorthanded shifts, while overtime costs are through the roof.
Through two-thirds (66 percent) of the year, police salary expenses totaled 53 percent of its allocated amount. Overtime was at 147 percent of budget.
Saying it another way -- police wages and salaries were $635,000 for the eight months; overtime totaled $118,000, which is about five weeks of the base budget payroll.
Fire department wages and salaries for the first eight months were $356,000, about 52.5 percent of the budget for the 66 percent of the year. Overtime costs were $105,000, which was $80,000 over the OT budget for the first eight months.
The department’s base payroll budget is $56,500 monthly.