Parish Council drops talk of new split of racino money

The St. Landry Parish Council dropped a proposal to talk about racino money, but that didn’t stop three mayors and a city councilman from speaking against any change in how the money from Evangeline Downs is split.
Councilman Timmy Lejeune withdrew his racino item from the agenda of a special meeting Wednesday that also included a discussion on amending the parish 2016 budget and the proposed 2017 budget.
Parish government is projecting a deficit, which was revised from $830,000 to $670,000 in the budget year ending in December.
The parish receives about $3 million from Evangeline Downs and takes about 4 percent for an administrative fee. The council receives about $1.6 million of the racino money, which is 55 percent. Municipalities get 21 percent.
Eunice Mayor Scott Fontenot said his city receives about $120,000 from the racino fund each year.
“We don’t have a lot of revenues...” he said.
“This might not even be brought up,” he said of the racino split. “I just want to reiterate how much that money means to the city.”
Also speaking against reopening the racino split were Reggie Tatum, Opelousas mayor, Erana Mayes, Melville mayor, and Andre Lanclos, a Krotz Springs councilman.
“Please consider involving the municipalities before you make decisions and let them be involved,” Lanclos said.
Having dispatched the racino issue, the Parish Council reviewed a list of questions submitted to Parish President Bill Fontenot and financial consulting firm of Going, Sebastien, Fisher & LeBouef, an Opelousas CPA firm.
Bill Fontenot announced the lower deficit and credited District Attorney Earl Taylor with agreeing to not be paid $90,000 this year.
The move also raised the 2016 ending balance from $954,704 to $1,114,973 in the General Fund.
Fontenot gave the council members 26 questions sent to him and his answers to those questions.
Among the questions and Fontenot’s replies were:
— How did we get to this point? In January the administration presented the council a balanced budget 11 months later we have a$670,000 deficit. What happened?
Severance tax down $210,000 (budget).
State revenue sharing down $33,000 (budget).
Office expenses up $45,000 (budget).
Capital Outlay (computer server, jail annex rehab, x-ray inspection system) up $79,000.
Telephone expense up $41,000 (budget).
Administrative employees and benefits up $182,000 (includes workers comp insurance).
Buildings maintenance and utilities up $60,000.
Transfers out (Airport, Community Action) up $188,000.
Judicial mandated expenses up $132,000.
District attorney mandated expenses up $120,000.
Clerk of court mandated expenses down $18,000 (reimbursement from off duty law enforcement fund).
City court mandated expenses down $32,000.
Inmate costs paid by General Fund down $77,000 (being paid by jail maint fund).
Why did this happen?
“This responses above indicate lower revenues than expected, increased mandated expenses, and unforeseen capital and maintenance expenses. Our opinion is that the employment of a full time CPA to monitor the budget vs actual on a day to day basis and to report that information to the parish president and department heads would be very beneficial and it is the intent of this parish president to employ such an individual ASAP.”
In legal questions, Chad Pitre, legal counsel, said parish government is not allowed to end a year with a negative fund balance. The home rule charter allows the government to continue with a budget into a new year if a new budget is not approved.
— Besides the action to furlough 17 employees and cut 4 percent of mandated expenses, has consideration been given to other cost savings measures?
Council travel — 10 percent.
Administration travel — 10 percent.
Cornerstone — $4,000 per month cost with $2,000 per month reimbursement from SLEDD — 10 percent reduction.
LSU office expenses — 10 percent reduction.
City marshal office operations — requesting reduction of mandated expense.
In the 2017 budget, Fontenot proposes $555,000 in video poker revenue will stay in the General Fund instead of going to the Road and Bridge Fund.
He is proposing that mandated expenses be reduced by 4 percent to save $104,000.
The Parish Council voted to convene its Administration-Finance Committee at 5:30 p.m. Tuesday for budget deliberations.