PA adopts $124.4 million budget

Sept. 22--After whittling down an initial budget that was $8 million short in funding, Port Arthur City Council adopted a leaner plan for spending in the 2014-2015 fiscal year.

The no frills $124.4 million budget contains enough money for day-to-day operations without dipping into the city's reserve funds, like was done the previous year.

In the 2013-2014 budget cycle, the city used $9 million in reserve funding to balance its budget -- something City Council and staff vowed would not happen this year.

"Going from $8 million out of balance to a balanced budget was not a simple process," acting city manager John Comeaux said, adding that higher fuel costs, unusual rains, drought, and excessive equipment breakdowns, were among the reasons that made this year's budget process so difficult.

Comeaux directed department heads to cut their budget requests back to what they were in 2013. The result was that all department heads reduced their projected expenditures by 8 to 10 percent from what they originally asked for.

"Everyone is affected by this. Everyone is suffering in some way. Everyone will have to work smarter in how they do things," Comeaux said.

While many wish list projects such as renovations to Rose Hill Manor, new cricket fields, walking paths, etc. weren't funded, Council did approve new revenue sources designed to bring more money into the general fund.

In addition to the departmental cuts, funding for seven vacant staff positions was eliminated. Council also approved increases for certain city fees.

Approved was a readiness to serve fee that is expected to generate up to $1 million. Most of that will come from a $5 fee on the city's residential water customers.

Also passed was a fee ranging from $2 to $5 on additional toters; a $500 fire hydrant meter installation fee; $50 per month fire hydrant meter fee, and a $200 charge for meter tampering.

The city's Economic Development Corporation will also pay a 2 percent sales tax administrative fee, an estimated $80,000, to help raise added cash.

Those increases provided enough money in the general fund to offset the $1.6 needed for employee pay raises.

District 1 Councilman Raymond Scott Jr. voted for the budget because of time constraints, but noted he was not in favor of the $5 readiness to serve to fee.

Scott said he had received numerous calls from constituents who were not in favor of the fee.

"If it were going for streets or something like that I would probably not be getting those calls. I don't want to hold up the budget, but I want to go on record saying I am not in favor of the $5 fee," Scott said.

Former City Councilman Harold Doucet spoke during the night's public hearing, stating he was against the readiness to serve fee.

"The concern for me is that the proposed budget is going to be balanced with a fee that affects our citizens," Doucet said.

Initially, when the fee was introduced, it was to offset some of the water and sewer fund losses, Doucet said.

"Essentially what you are doing is taking money to fund $1.6 million (for employee raises) and it is not right, not right for our citizens," Doucet said.

Comeaux said city staff knew the $5 fee would not fix the water and sewer problem, but it was a step in the right direction.

"This is just to stop the bleeding," Comeaux said.

The city recently approved an $8 million contract with Siemans Industry Inc., to help shore up the city's water loss problems.

Siemans will replace fire hydrants, large water meters, institute a city-wide retrofit to fixed based system as well as installing automatic meter reading system upgrades.

Comeaux said the work Siemans does should help fix the city's water loss problem.

This year's budget contained numerous challenges including a 13 percent rise in health insurance costs, $2 million sales tax decrease, flat property values.

To fund the budget, City Council approved a 79 cent tax rate.

Though the tax rate is the same as last year, increased property values will result in higher tax bills for some property owners.

The owner of a $100,000 home will pay $790 in property taxes before any applicable exemptions are taken.

District 4 Councilman Stephen Mesely cast the lone vote against adopting the new budget.

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