From the Desk of William H. Kennedy,
Office of Civil Services, Hathian, L.A.
March 6th, 2012
TO:
Tabitha Tinamou,
Head of Civil Services, Hathian, L.A.
SUBJECT: Operational Budget Assessment
The Following Projections have been deemed the annual end of fiscal year report for the City of Hathian, Louisiana, County Of Hathain.
Governmental Activity Revenues 2011
Charges for services: $4,256,717
Operating grants and Contributions: $582,413
Capital grants and Contributions: $372,021
General Revenues
Taxes: $16,695,790
State Revenue Sharing: $780,542
Impact fees: N/A
Investment Income: $500,934
Miscellaneous: $31,264
Total Revenues $23,219,681
Business Type Activity Revenues 2011
Charges for services: $12,056,491
Operating grants and Contributions: $2,373,001
Capital grants and Contributions: $764,276
General Revenues
Taxes: N/A
State Revenue Sharing: N/A
Impact fees: 600,050
Investment Income: $892,465
Miscellaneous: $38,073
Total Revenues $16,724,356
Governmental Activity Expenses 2011
Charges for services: $4,379,069
Police: $6,995,716
Fire: $3,298,157
Public works: $2,200,057
Culture and Recreation: $5,482,542
Interest on long term debt: 885,174
Total Expenses $23,870,715
Business Type Activity Expenses 2011
Water: $6,726,015
Sewer: $5,962,320
Reclaimed Water: $2, 698,788
Stormwater Utility: $1,769,221
Total Expenses $17,156,344
NET INCREASE (DECREASE) IN NET ASSETS ($1,083,022)
History
During the Economic relapse of the housing market crash of 2007, Federal and State wide Recession of 2008, and DP Deepwater spill of 2010 has had certain effects on Small/Middle-town, Louisiana. With the budget originally at at astronimical -17.6% starting from the Katrina Crisis, Hathian has seen it share of difficult times. Given the initiatives in place from these incidents (I.E. Ordinance Gein10, Appointment of City Staff, Public work initiatives, ETC) Hathians Defecit has been coming around since the orignal decline. With the Current projections, it is recommend that we consider additonal innitiatves to improve public works and tax allocation.
Recommended Initiatives
1) City Light/Signage Tax- Many towns include in current tax allocation this as a listed service for the community. During the course of reading state charter, we have been allowed to include the capita tax, but nothing has been done to make the motion. If we included this innitiative, this would give us a additional $400,000 dollar increase in Business Acitvity Bracket, and be cost effective to the Tax payer by only a .02 % increase to Taxes.
2)Community Redevelopment Trust Fund(CRTF)- "Tax Increment" dollars to be used for residential and commercial neighborhood improvements, Including road resurfacing and traffic calming devices; streetscaping and signage; cultural and historical facilities; parks and recreation projects; commercial parking facilities development; housing incetives; business Incentives (Sign, facade, and renovation grants; and land aquistion. The Current CRTF has been misapprocreated to miscellanous spending and over spendages in current Government expense. If we did a mere 7% allocation to the current CRTF it would increase state sharing income by 14% and allow Small business owners more tax breaks at the end of fiscal year.
3)Reclaimed Water Projects- Currently we have several renewable hydrofacilities producing at lower yield due to our natural surronding area. Given the Impact of the DP Deepwater spill, We have had to increase spending on drinkable water for the city, but stopped all initatives in Reclaimed water. Given the projections above, if we increase focus on the Reclaimed water, we will cut Utility cost by 25% and only increase Reclaimed water by 4%.
Recommended Tax Allocation
1)Police- Given the alloted budget from the last three years, the Police department has had a over spendage of tax allocation to it. Smaller to Mid-American towns have decreased spendage by 12% to increase City growth and projects. With the given budget the Police department with its Auxllary units (Equipment, Utility, Facility Cost) could be sufficent with a budget of $5,127,962. This would still cover cost for Employment, Insurance and retirement packages for the Officers, and alot better usage of funds for other city projects/innitatives. It is also Recommend with the Tax Allocation from Citations and Reporting, that a Additional 3.5% be alloted to the Police department for self sufficeny purposes.
2)Fire- Given the demographics of Vodoo District, Metro 8 District, and Downtown Hathian, The Fire departments allocation is also a budget that could be marginally cut to fit into the current economic trend we are noticing in the given recovery period. It is recommend that the Fire Department increase its own Fire Marshall program to allow for Self Sufficeny. Budget for the new year $2,656,789.
3)Public Works- This falls under the category of Civil services and the newly alloted Correctional department of the office of Civil Service. The Category of Civil services covers from the Administration to City laborers. As above mentioned, the departments of Civil services should increase self sufficeny methods as with instance of the Office of City Health and Safety. The innitatives behind Ordinance Gein10 allot for addittional deparmental spending within the need or scope projects. The Current Budget should not by changed.
4)Culture and Recreation- Given Hathian being host to several events (CU Bikini Ball, Mardigra, Public Holidays) This budget should not be changed for Public benefit and satisfaction. However, it is recommend that the City consider a Higher business tax appointment for such events to increase Investment income. If we alloted a 3.2% increase to the current Tax of 4.2% (Montogomery Business Break of 04) This would put business owners on equal playing level and improve Tax approcreation by $ 642,097
Mr. William H. Kennedy, ESQ
Public Health Inspector
Office of Civil Services, Hathian L.A.
(Phone Number X1337)