Lake Charles’ proposed operating and capital budget for the 2016-2017 fiscal year reflects ongoing growth in the region and the demands it has placed on city services. Mayor Randy Roach said the $73 million proposed budget, which includes a $200,000 surplus, is “relatively balanced” overall.
Roach said the region continues to be a market leader in the state when it comes to attracting new businesses. In Southwest Louisiana alone, there is $43 billion worth of construction projects underway. Roach said the area has also seen 60 straight months of job growth.
“When you compare that to statewide, where there has been a decrease in job growth, you can see how fortunate we are,” he said.
He went on to say that while the growth is beneficial to the area, a “tremendous demand” has been placed on services like water, sewer, fire, police, and parks and recreation.
Water and wastewater have been two of the city’s more significant investments over the last few years and the issue remains prevalent in the city’s current proposed budget. Lake Charles is in the midst of making its largest investment into wastewater with the $42 million rehabilitation of Treatment Plant B/C. The project is not included in the current proposed budget.
“These are big-ticket items. You have to spend money on these things,” Roach said.
Mixed in with the work are the city’s yearly improvements to wastewater collection basins, an initiative Roach described as “labor intensive.”
“It’s renovating an existing system. It’s like putting a new roof on a house,” he said.
To help fund some of the future infrastructure improvements, Roach said the city will be relying on the renewal of a one-cent sales tax and several millages. The sales tax was originally approved in the late 1980s and has been renewed by voters ever since.
“That one-cent sales tax would generate about $25 million per year. You can get just an idea, when you have this budget, you get an idea of how important that sales tax really is,” Roach said.
City Finance Director Karen Harrell discussed the city’s $68 million in general fund expenditures, a majority of which are directed to operating expenses related to city police, fire and public works.
Harrell said retirement contributions to some of the departments remain a significant part of the city’s expenses. In 2009, the city’s contribution was right at $2 million. It increased in 2010, and now the current fiscal year has a budgeted contribution of just over $6 million.
Harrell said the expenses highlight the need for the city to renew the one-cent sales tax since 48 percent is dedicated to the general fund, 16 percent to wastewater, 8 percent to recreation funds, and 28 percent to the capital budget.
“It’s very important that we stress to our citizens that it’s a renewal. There are no new taxes,” she said. “It’s important. Those revenues are budgeted 100 percent as though they are renewed.”
City Administrator John Cardone discussed the nearly $33 million proposed capital budget for the 2016-2017 fiscal year. He said that with the rehabilitation of Plant B/C not included in the document, the city’s capital expenses for wastewater and water is roughly $14 million, while streets and drainage is around $10 million.
A large portion of the funding for the projects comes from a sales tax and money generated by gambling.
The city’s proposed authorization schedule for wastewater and water projects includes work on a wastewater basin, and a power center lift station and force main project, according to the budget.
In the budget, the city has also set aside funding for a new 9-million-gallon water plant in southeast Lake Charles. Cardone said officials have been having conversations with the parish to extend water service to certain areas outside of Lake Charles.
“We recognize that we’re going to have to expand capacity for our water system,” Cardone said. “We started to put money aside in order to do that for a new water plant. With all of the capacity that’s taking place with the new casinos and developments in the area, it’s starting to get to be a little bit more of a challenge.”
With the detailed budget being presented to the council, Roach said the city still has issues on the horizon that need to be taken into account. He said changes in the Affordable Care Act will require the city to acknowledge new eligibility standards. While there are no firm numbers as of yet, Roach said the new rules could cost the city between $300,000 and $500,000 per year. He also said the city’s retirement contributions will continue to be a category that needs to be monitored.
Find Justin B. Phillips on Twitter and Facebook.
from American Press: Your Best News And Advertising Source - Home http://ift.tt/2bJqWjz
0 التعليقات:
Post a Comment