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.
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