Re-cap of St. Mary Parish Council Meeting 5/28

St. Mary Parish Council
By: Howard J. Castay, Jr.

An independent audit of the St. Mary Parish Council’s Fiscal Year 2007 budget, shows the Parish Council began 2008 with an extra $12.9 million in its governmental funds budget, and $1.2 million in its general funds budget, both available for the council to spend as it deems necessary.

Guy Pitts of the Morgan City based Pitts and Matt firm of public accountants, presented the review Wednesday, during the May 28 St. Mary Parish Council Meeting.

He said the council maintains 42 governmental funds, which include earmarks for items such as road construction and maintenance, sanitation and capital improvement.

“The council’s total operating revenues for the year 2007 was approximately $31 million and their total expenditures were $28.2 million,” Pitts said.

The local government originally ended 2007 with $2.8 million in its general fund, but transferred $1.6 million – a state grant, to Hospital Service District No. 1, for their construction of the new Franklin Foundation Hospital.

Pitts said the biggest contributor to the 2007 increase in its fund balance, was due to the parish collection of $402,000 more in ad valorem or property taxes.

On another topic, he said the parish council also completed some major projects in 2007 including the $4.5 million Atchafalaya At Idlewild golf course, clubhouse and parking area and $1 million in various improvements to the airport.

In another matter, Pitts pointed to two pitfalls in the government’s budget, one controlled, the other needing improvement.

He said the council is “current” on its debt service on the parish’s landfill, which isn’t projected to close until the year 2041. “You basically have a $3.9 million hole here, but you have 33 years to cover it,” Pitts said.

However, he said the parish is losing an annual $300,000, in operating and maintain the jail, due to having to pay prisoners’ medical bills.

“You’re getting $7 per prisoner from the State, but you’re paying about $14,” he said.

The parish ended 2007 with a $177,996 deficit in operating and maintaining the jail.

In other matters, Pitts said during the course of the audit, it was noted that, “…several of the parish’s individual funds needed budget amendments that were not made.”

State Statute, the St. Mary Parish Charter and the St. Mary Parish budget ordinance require that budgets be amended. Failure to do so prevents the “…governmental body from effectively curtailing or expanding projects and or their services with funds that are actually available.”

“Although the parish makes accruals for payables and receivables at the year end, adjustments are not made in the interim period,” Pitts said. “When significant differences exist between payables and receivables from year to year, the amount of funds that appear to be available or costs that appear to have been incurred, can be distorted.”

Pitts recommends that the Council “fine tune” its ongoing budget monitoring program, in order to “periodically consider accruals for major revenues and expenditures.”

It should be noted that the 2007 Fiscal Year Budget was the last year of a previous four-term Parish Council. In 2008, there are 6 new members and 5 returning incumbents.

The new Council includes: Rev Craig Matthews, District 1, Charles “Butch” Middleton, District 2, David Hanagriff, District 3, Glen Hidalgo, District 4, Ken Singleton, District 5, and Logan Fromenthal, District 6.

The returning members from the 2007 Council are: Kevin Voisin, District 7, Charles “Chuck” Walters, District 8, Albert Foulcard, District 9, Steve Bierhorst, District 10, and Gary Duhon, District 11.

In other business during the Wednesday meeting, the Council appointed a committee to study the St. Mary Parish Home Rule Charter for possible changes, any of which would have to be presented before voters in parish wide election, in order to gain approval.

The idea for the committee surfaced last month when Parish Councilman Glen Hidalgo suggested the council appoint the group to amend the parish charter to propose an amendment that would require the parish to hold public hearings before making fiscal decisions over $10,000.

Currently, the St. Mary Parish Council can spend money without gaining public approval.

Hidalgo cited a past decision by the council to hire former State Rep. Jack Smith as their new capitol liaison with an initial salary of $50,000.

Hidalgo said previously, “It’s OK to give a recreation department $2,000 or $3,000 here and there, but to offer this job position at $50,000, to be paid for with public money, without the public input, is wrong. Taxpayers include the elderly, and many others who are on fixed incomes.”

“It’s time to look at bringing the charter up from 1983 to 2008 standards,” Hidalgo said.

The members of the Charter Review Committee are: former parish president Bill Cefalu of Morgan City nominated by Councilman at-large Gary Duhon. Also serving will be Jeff Beverly, nominated by Butch Middleton of Franklin; Jessie Boudreaux (by Craig Mathews of Four Corners); Jim Supple (by David Hanagriff of Centerville); Stan Robinson (by Glen Hidalgo of Bayou Vista); James Vidos (by Ken Singleton of Patterson); Stan Beaubouef (by Logan Fromenthal of Morgan City); Phelo Joe Keller (by Steve Bierhorst of Patterson); Sostenes Ruiz II (by Kevin Voisin of Morgan City); Lou Tamporello (by Chuck Walters of Amelia); and Willie Rack (by Albert Foulcard of Franklin).

Council Chairman Bierhorst said a set of guidelines is being drafted and there will be no time limit on the review.