Last meeting, the Monroe City Council heard some
potential good news that could portend the disappearance of bad news it
will have to deal with starting at its meeting this week – but maybe discover a
whole new set of problems for which it will require foresight and discipline to
manage.
At that last session, independent Mayor Friday Ellis revealed
the city could be receiving a major economic development project. He asked for,
which the Council granted, permission to sell the old Ouachita Candy Company riverfront
property which the city bought a few years ago to a developer that would create
a mixed-use complex.
The project builds upon the win down the road in
Richland Parish snagging Meta’s Hyperion Project, a data center that is forecast
to pump in $27 billion to the region for startup and continue with hundreds of
higher-paying jobs. Anecdotal
reports are that the activity has pumped up lodging, entertainment, real
estate, and general retail sales, and triggered interest in the historic property,
which Ellis
said those elements making it historic will be retained because of the tax
credits involved and the complex built around it.
The boost in downtown development reflective of
the Meta activity promises to line additionally city coffers, with that bonus
already starting to be detected in year-over-year numbers. That provides a ray
of sunshine to offset disappointing budget news.
According to the budget
Ellis sent to the Council, which was covered in budget meetings a week earlier,
it sees a nearly million-dollar deficit, which will drive the general fund
balance to its lowest level since the start of Ellis’ first term in office.
Even as revenues advanced three percent, expenses went up four percent.
Ellis noted increased costs came primarily from
higher insurance premiums, fire department compensation hikes, and pouring more
into repairs and maintenance of community centers, a priority of the majority Democrats
on the Council. He declared that streamlining through reductions in force – 69
percent of the budget is in personnel expenses – would be pursued to balance in
the future.
Yet the good economic news could change all of
this. The budget anticipates only a one percent jump in property tax revenues,
which comprise about 11 percent of all, and just three percent in sales taxes,
which make up 63 percent. Putting more property on the rolls and with more
sales at prices above assessments from two years ago, and with sales tax
revenues up 10 percent year-over-year, that could add as much as $5 million in
revenue from these rather than a projected $1.4 million, padding the general fund
nicely.
What’s more, the budget has Monroe Regional
Airport losing $4.2 million. Yet because of Hyperion, MLU already has seen
flights added and passenger volumes going higher, so the passenger facility fee
revenue could take a bite out of that deficit.
The larger question that remains is if the bounty
transpires whether later in the year the Council will want to spread it around.
The Democrat majority has made no secret that it would like to spend more on
city government and particularly with capital projects in their districts,
calling neglected the areas of the city they represent. At the same time, Ellis
has an ambitious capital program, Oneroe,
that doesn’t entirely mesh with the majority’s agenda.
Normally, when a government lands some unexpected largesse, its elected
officials become a big, happy family with bucks to go around for all. Taxpayers
should hope if that this scenario plays out that the city still pursues its efficiency
measures and thinks ahead with the bounty; for example, increased activity will
mean greater needs for roads, their repairs, and traffic management. Now is not
the time to splurge.