Mamou Council faces budget woes, financial shortfall

The Mamou Town Council received some bad, but understandable, financial news at its regular November meeting last week. There will be a public hearing on two budget proposal ordinances and on a pay raise for the mayor before the next regular meeting on December 10.
Certified Public Accountant Michael Johnson informed the council that new projections indicate a nearly 65 percent decrease in the town’s available general fund balance at the end of the current budget year.
The original budget estimated an ending general fund balance of $403,880. However, the updated projection shows an estimated balance of just $148,962 at the end of December.
Important factors in the decrease include the city’s ownership of Savoy Medical Center and a huge increase in street department expenditures.
Furthermore, the projection for the 2015 budget year shows decreases in revenue and an ending general fund balance of just $15,462.
In 2010, Rapides Heath Care ended its management of the SMC, and the City of Mamou took over oversight of operations of the hospital, including the cancer center and nursing home. Right now, SMC is managed by Savoy Medical Management Group, of which the city is the sole member. This move stabilized the hospital, making it eligible to receive certain federal funding. It guaranteed the existence of the needed rural hospital.
However, it also meant double financial loss to the city. The city lost important lease payments and sales tax revenue. Because the city owns the hospital, many vendors who sell to SMC do not have to pay sales tax because they are selling to a government-owned body.
“We are fortunate to have a hospital,” said Mayor Ricky Fontenot. “That step was taken to make sure our hospital would survive.”
In comments after the meeting, Fontenot said that a decision had to be made: “Was it more important for the town to receive lease payments, or for our residents to have easily accessible quality health care?”
The mayor also commented on the hospital’s value as an employer and its importance in attracting other businesses and jobs to Mamou.
“If the hospital did not exist, Wal-Mart wouldn’t be here,” Fontenot said, referring to the new Neighborhood Market set to open in January.
In addition to the loss of revenue from SMC, Mamou experienced higher-than-projected expenses in the Street Department. This is because the city is no longer able to use trustees for some of the work. The amended budget proposal shows a 29 percent increase in the Street Department, from $470,000 to $605,400.
Johnson told the council that his amended budget – and the proposed 2015 budget – is very conservative on the revenue side of the ledger. It also favors larger projected expenditures as a way of ensuring that the city is adequately prepared for unexpected circumstances.
The council will vote on the amended 2014 budget and the 2015 proposed budget at the December 10, meeting, which starts at 6 p.m. There will be a public hearing held on both ordinances before the meeting.
The council will also hold a public hearing on providing a 75 percent pay raise for the mayor. Currently, the Mayor of Mamou earns $1,800 a month. This salary has been in place for the last 11 years, since 2003. The proposal would increase it to $3,100.
There were several reasons provided for the pay increases. Alderman Charles Reed noted that the job responsibility of the mayor has increased dramatically since the 2010 restructuring of SMC. According to city attorney Peter Savoy, Mamou has “the only mayor in the state who has to oversee the running of a hospital, a nursing home, a psych center, and a cancer center.”
Additionally, the salary was increased in consideration that the mayor is the chief executive official in the town. Currently, the salary of the mayor is considerably lower than that of the police chief, which is a little over $2,900 a month.
Fontenot noted that he has turned down a raise twice in his first term as mayor. In the recent local elections, Fontenot was unopposed and will be serving a second term starting in January.
In a contested exchange, police Detective Marie Potter-Manuel questioned the motives of the council in delaying a recommended promotion for her to captain.
The item was not on the agenda, and the council did not add it at the beginning of the meeting. Current Police Chief Greg Dupuis had called the mayor to add his recommended promotion to the agenda.
The council decided to wait until a new police chief takes over before considering promotions.
Potter-Manuel was upset about the council’s decision.
Noting that she’s been with the MPD for 12 years, Potter-Manuel said, “I’ve worked at multiple positions for a very long time with the department. We’re short-handed, and I often work extra hours. I do a lot of work” for the department.
She pointed out that Dupuis had called the morning of the meeting and specifically asked for her promotion to be put on the agenda. “Why am I being passed over?” she asked.
Fontenot noted that the city will have a new chief in place in about a month. Dupuis is in the last few weeks of his tenure as police chief. He is not seeking re-election. In January, a new police chief will be heading the Mamou department.
Currently Assistant Chief Katrina Richard will be facing Robert McGee in a run-off election on December 6.
“If the chief wanted to give you a promotion, he had able time” to make the recommendation before the last month of his term, Fontenot told Potter-Manuel.
Besides, Savoy told her, the council couldn’t act on the recommendation because “the chief has to be here himself to make the recommendation.”
Potter-Manuel was told that they would be happy to consider any promotion recommendations that are made by the new chief of police.