Ricky John Bergeron
June 2, 2008June movie releases
June 4, 2008The St. Mary Parish Council got a $14.1 million bonus courtesy of an independent audit of its Fiscal Year 2007 budget.
The council has an extra $12.9 million in governmental funds and $1.2 million in its general fund, both available to be spent as the elected body deems necessary.
Guy Pitts, of the Morgan City-based Pitts and Matt public accounting firm, presented the review at last Wednesday’s parish council meeting.
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 construction of the new Franklin Foundation Hospital.
Pitts said the parish collected $402,000 more in ad valorem (property) taxes, accounting for the increase in the 2007 fund balance.
To its credit, the parish council saw several major projects completed in 2007, including the $4.5 million Atchafalaya At Idlewild goft course, clubhouse and parking area.
Over $1 million also went into various improvements at the airport, Pitts said.
The accountant said the council is current on its debt service for its landfill, which is expected to close in 2041. With the site’s closure, Pitts warned councilman the parish will be facing a shortfall. “You basically have a $3.9 million hole here, but you have 33 years to cover it,” he said.
On the other hand, the parish is losing $300,000 annually at its parish jail. Pitts said paying prisoners’ medical bills is to blame. “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 law, the parish charter and budget ordinances require that all 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,” Pitts said.
“Although the parish makes accruals for payables and receivables at the year end, adjustments are not made in the interim period,” he 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 recommended that the council “fine tune” its ongoing budget monitoring program, in order to “periodically consider accruals for major revenues and expenditures.”
In other business, the parish 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 a parishwide election in order to gain approval.
Councilman Glen Hidalgo suggested last month that a committee be formed to author a proposed change to the charter that would require public hearings be held before fiscal decisions involving spending over $10,000.
The St. Mary Parish Council can spend money without public approval.
The Charter Review Committee includes former parish president Bill Cefalu of Morgan City, Jeff Beverly, Jessie Boudreaux, Jim Supple, Stan Robinson, James Vidos, Stan Beaubouef, Phelo Joe Keller, Sostenes Ruiz II, Lou Tamporello and Willie Rack.
