Livingston Parish uses nearly half its reserves

• By BOB ANDERSON
• Florida Parishes bureau
• Published: Jan 5, 2009 - UPDATED: 12:05 a.m.

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Livingston Parish government dipped into its reserves for almost $1.2 million to meet 2008 spending needs, parish records show.
The withdrawals more than halved the parish’s general fund reserves, according to the parish’s financial records.

When it passed the 2008 budget, the Parish Council projected revenue for 2008 would add more than $1 million to the parish’s rainy day fund.

However, the rains and winds from three storms coupled with higher than expected prisoner expenses drained money from the general fund savings, parish officials said.

To make matters worse, revenues didn’t meet budget projections.

Instead of starting the year with $3.6 million in the rainy day fund, as originally projected, the general fund will begin the year with less than $1.2 million in the bank, records show.

Not only did the 2008 budget get unexpected punches from hurricanes Gustav and Ike in September, but the budget also got whacked with an unbudgeted $400,000 in expenditures from a spring storm that roared through the parish, Parish President Mike Grimmer said.
The parish’s 2009 general fund budget totals about $5.9 million when transfers to other funds to cover expenses in those funds are included.

If revenues make projections this year and government holds the budget line on spending, the parish should end up with a little more than $1.1 million in its rainy day fund, based on the administration’s budget estimates.

One of the big question marks for parish government finances continues to be the parish jail and the cost of housing excess prisoners in jails outside the parish, the parish president said.

The 2009 budget sets aside $200,000 for that purpose, compared to the $2.3 million that actually went for prisoner upkeep in the amended 2008 budget.

Lowering that figure to $200,000 for 2009 assumes that the parish’s new jail opens by the end of the month, and that the Sheriff’s Office promptly moves prisoners housed outside of the parish into the new Livingston Parish facility, Grimmer said.

The proposed budget for the coming year projects no increase in tax revenues and a $170,000 increase in other revenues, mainly from licenses and permits, for a total of $5.9 million in revenues for the general fund.

Last year’s revenues fell more than $45,000 below projections, ending up at $5.7 million,  parish records show.