The gist: The City-Parish Council voted unanimously Tuesday to move forward a $3.8 million police union backed pay plan, which would allocate the money from the city’s general fund if passed at final adoption next month. The vote and the sprawling discussion around it exposed increasing pressure on the city’s finances.
Get caught up, quickly: Police officers trained by the Lafayette Police Department are leaving for higher paying jobs, according to Chief Toby Aguillard, who characterized the departures as a crisis in remarks to the council. LPD lost 15 officers last year and 18 so far this year, he said. Meanwhile, the city side of Lafayette Consolidated Government is already slated to eat up $11 million of a $50 million general fund balance just to pay for regular operating expenses next year. Drawing $3.8 million in recurring expenses would deplete the general fund more quickly.
If the council approves this pay raise, and nothing else changes, the city general fund will run out of money by 2024. LCG Chief Financial Officer Lorrie Toups shared a pro forma to show what will happen to the city’s general fund balance:
|Ending Fund Balance||$45M||$30M||$21M||$12.5M||$5M||-$1.4M|
The city general fund will also break LCG’s fiscal policy of maintaining at least a 20% operating reserve by 2021. That means LCG will have less capacity to respond to emergencies and as a result will have to pay more to borrow money since lenders will see LCG as a riskier investment.
These numbers were based on a best-case scenario. Toups assumed 2% per year growth revenue, which hasn’t happened in years, and effectively no growth in expenses, which isn’t likely given the many funding needs throughout LCG.
Starting pay for a city of Lafayette police officer is $34,600. Starting pay for any other city in the parish is or will soon be about $40,000, according to Aguillard. Starting pay in McKinney, Texas, where several LPD officers are said to be transferring, is $72,000. An LPD officer with 10 years of experience makes $62,000. The city of Lafayette’s police department just isn’t price competitive and as a result is at risk of continuing to lose talented officers.
The fire department is working on a new pay plan. Fire Chief Robert Benoit spoke in favor of the new pay plan for police, and expressed his hope that LPD and the council would support the fire department as well when it introduces its own proposal in the coming months.
Increasing pay for firefighters will also cost millions of dollars per year. Council member Kevin Naquin tried unsuccessfully to amend the police’s plan to include $3 million for the fire department.
Councilman Kenneth Boudreaux wants to increase all LCG employee salaries 5%. Last year, the council passed a 2% pay raise for employees, overriding a mayor-president’s veto. And this spring, the council approved a 2% cost-of-living increase for all LCG employees, including police if LCG’s property and sales tax revenues increase by 2% or more. If Boudreaux’s new 5% proposal passes, it would mean an increase of another few million dollars in additional annual expenses.
All together, increasing pay for police, fire and all of LCG’s other employees could cost $10 million per year or more as proposed. If no new revenue were found or budget cuts made, the city would deplete its general fund by the end of 2022. Most other LCG employees are paid in part by the parish general fund; a government-wide pay raise would put even more pressure on a constrained parish budget.
New revenue appears necessary to make the police plan work. Mayor-President Joel Robideaux supported increasing police pay and said it can be paid for by a mixture of fund balance, new revenue and more budget cuts. Specifically, he mentioned the possibility of bringing back red light cameras around schools and using that money to support the police pay raises.
Boudreaux proposed two amendments to offset added costs. The first was to eliminate $726,000 budgeted for positions at the police department that are currently vacant. The second was to zero out the $1.9 million budgeted to pay for overtime at the police department. Both amendments failed after receiving significant pushback from the public.
Councilman Jared Bellard proposed eliminating all vacant positions across LCG. He advocated passionately for the need to find the money to fund this new pay plan for police, and suggested also looking at eliminating funding for non-governmental organizations.
What to watch for: A potentially electric final adoption vote on Nov. 5. The council will then determine whether to approve LPD’s new pay plan and/or tweak it further. But if Boudreaux and Bellard follow through on their proposed legislation, the council could face plans to provide 5% raises to all LCG employees and to eliminate all vacant positions across LCG. Hanging over these discussion is the tension of priorities, as councilmembers and the administration angle to find money in a shrinking budget.