Community braces for more budget cuts

Morgan City continues to wait for a reimbursement to the city’s coffers of $1 million in expenses relating to the city’s recovery from Hurricanes Gustav and Ike, and as they wait, city employees face a pay cut.

City Finance Director Deborah Garber confirmed the amount and said she is expecting the check from the State Treasury, who is charged with dispersing all federal funds. She said FEMA has already paid the money to the State for expenses the City of Morgan City incurred while cleaning up after the hurricanes.

Mayor Tim Matte said in April, the city spent $2.4 million in hurricane restoration work but had received only $1.47 million in reimbursement. Also in April, the mayor issued a list of 26 work items city expenses related to the 2008 hurricanes.

On that list, FEMA had made at least 90 percent of the payments.

The unpaid balance is related to emergency measures, repairs to power lines, debris issues where the city had to remove trees affecting private property, a clean up at the city’s former Swamp Gardens, and a new roof at the city’s wastewater treatment plant.

The mayor had also issued a list of six city expenses related to Hurricane Ike.

The balances that remained included restoration at the electrical department, debris clean up, and costs involved in closing the city’s flood gates and shoring up items.

“We’ve been assured that FEMA will pay these amounts,” the mayor said before adding there is no need for panic at city hall.

And last month, Matte said the situation still isn’t causing any problems.

But his comments come in the wake a September announcement that the city had a shortfall of nearly $400,000 in its budget.

To compensate, Matte said he is pondering a 2 percent payroll cut across the board for all employees. He said he is also considering a 2 percent freeze on cost of living raises, also for his employees.

The 2011 budget calls for $37.1 million in revenues and $36.7 million in expenditures.

Morgan City generates most of its cash flow from it utility system. Last year, the City Council approved a utility rate hike, the first time in more than 20 years.

However, Matte said in September the utility rate increase is still not enough, and the payroll changes must be considered.

“The increases in utilities have improved the finances and operations of the utility system. They are indeed allowing us to transfer profits over to the general fund, but generally at the same level as before. The problem we have encountered is that in the past few years, we were transferring more than we were making in the utility system.”

Garber said there are approximately 17,752 electrical utility meters in the city.

She said the city pays 56 cents a meter monthly, to have its meters read, through a contract with Utili-Serv, a nationwide company called AMS Utili-Serv, with locations in Arkansas, Oklahoma, Texas and two offices in Louisiana, one in Monroe and the other, Lake Charles.

The city council is expected to vote on Matte’s pay suggestions later this month.