Denham Springs stuck with tab
City may have to borrow $1 million to cover Gustav costs
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DENHAM SPRINGS — The city may have to borrow up to $1 million to pay its share of debris pickup and other Hurricane Gustav-related expenses, Mayor Jimmy Durbin said Wednesday.
The mayor has instructed department heads to “hold a tight line” on overtime and other expenses, he said.
The city expects to receive federal reimbursement for 75 to 80 percent of the roughly $5 million in hurricane costs it incurred, he said.
The city not only has had to deal with the most destruction it ever has received from a hurricane, but the first three months of sales tax collections this fiscal year came in below budget estimates, Durbin said.
The city started out the fiscal year on July 1 with a surplus of about $750,000, but wants to keep something in reserve, the mayor said.
Among the major hurricane costs incurred by the city were the collection, chipping into mulch and hauling away of storm debris.
More than 100,000 cubic yards of downed trees, limbs and other storm debris were picked up by contractors. Though the contractors have completed that work, the final numbers haven’t been compiled yet, said Ted York of Alvin Fairburn Engineers, which oversaw the cleanup for the city.
So far, invoices for the cost of dealing with storm debris within the city limits exceed $3.7 million, said Clarence Speed, the city treasurer.
The city also incurred other costs such as overtime for police and other city workers, fuel and purchase of generators and other equipment costs, Durbin said.
He said that unless the federal government changes its reimbursement plans, the city probably would have to borrow between $750,000 and $1 million to pay for its share.
“It was the biggest storm to ever come our way” in terms of damage to the city, Durbin said.
After hurricanes Katrina and Rita combined, the city picked up only 13,000 cubic yards of debris, he said.
After those hurricanes in 2005, city workers handled the debris removal, but the damage by Gustav was too massive for city workers to manage, Durbin said.
The mayor has instructed department heads to “hold a tight line” on overtime and other expenses, he said.
The city expects to receive federal reimbursement for 75 to 80 percent of the roughly $5 million in hurricane costs it incurred, he said.
The city not only has had to deal with the most destruction it ever has received from a hurricane, but the first three months of sales tax collections this fiscal year came in below budget estimates, Durbin said.
The city started out the fiscal year on July 1 with a surplus of about $750,000, but wants to keep something in reserve, the mayor said.
Among the major hurricane costs incurred by the city were the collection, chipping into mulch and hauling away of storm debris.
More than 100,000 cubic yards of downed trees, limbs and other storm debris were picked up by contractors. Though the contractors have completed that work, the final numbers haven’t been compiled yet, said Ted York of Alvin Fairburn Engineers, which oversaw the cleanup for the city.
So far, invoices for the cost of dealing with storm debris within the city limits exceed $3.7 million, said Clarence Speed, the city treasurer.
The city also incurred other costs such as overtime for police and other city workers, fuel and purchase of generators and other equipment costs, Durbin said.
He said that unless the federal government changes its reimbursement plans, the city probably would have to borrow between $750,000 and $1 million to pay for its share.
“It was the biggest storm to ever come our way” in terms of damage to the city, Durbin said.
After hurricanes Katrina and Rita combined, the city picked up only 13,000 cubic yards of debris, he said.
After those hurricanes in 2005, city workers handled the debris removal, but the damage by Gustav was too massive for city workers to manage, Durbin said.
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