Election Expenses Jump to $21,000 While Insurance Costs Double

PORT ALLEN - The city closed fiscal year 2024-25 with strong revenue performance but faces significant unexpected cost increases that will challenge the current budget, Finance Director Adrian Daigle told the council Wednesday.

Budget Performance

The city's general fund performed well above projections, collecting 116% of expected revenues while spending only 86% of budgeted expenses through June 30th.

"We had 116% in total revenues, so we were 16% over so far that we've recorded in our books, and our expenses so far is at 86%. So we did very well in the general fund," Daigle reported.

However, other funds showed mixed results. The water and gas fund collected only 86% of projected revenues but spent just 79% of budgeted expenses. The sewer fund significantly exceeded revenue expectations while spending slightly above budget.

Unexpected Cost Spikes

Despite the positive overall performance, two major cost increases threaten to strain the budget:

Election Costs Surge: The upcoming police valorem tax election will cost approximately $21,000—a dramatic increase from the original $3,400 estimate provided by the Secretary of State.

"At the end of June, they sent me a revised estimate that they thought there would be some state amendments on the constitution where the state would pay part of this election," Daigle explained. "Based upon what happened in the legislative session, those state constitutional amendments have been removed off the ballot."

With no state funding for constitutional amendments, the entire election cost shifts to municipalities with ballot measures. The $17,600 increase represents a more than six-fold jump in projected expenses.

Insurance Doubles: Vehicle liability insurance costs have nearly doubled across all departments, forcing budget reallocations within the current fiscal year.

"The vehicle liability insurances that we budgeted in each of the departments have now paid that bill for this year, they've gone up almost twofold," Daigle said. "So we'll have to be shifting some money in the current budget to cover the vehicle liability coverage."

Revenue Breakdown

The detailed financial report revealed the city's diverse revenue streams performed variably:

• General Fund: Exceeded projections by 16%
• Water/Gas Operations: Fell short by 14%
• Sewer Operations: Significantly outperformed expectations

Daigle attributed some revenue shortfalls to overly optimistic projections made 15 months earlier during budget preparation in March and April 2024.

Financial Management

The finance director presented the full detailed report rather than the typical condensed version, providing council members with comprehensive department-by-department breakdowns.

"I presented to you the detailed financial report yesterday. I usually sent out a condensed version on Fridays. Friday was the holiday, so I didn't get around to it," Daigle explained.

The expanded reporting format allows council members to track individual department performance and understand specific revenue and expenditure patterns across all city operations.

Looking Forward

The rising costs highlight ongoing challenges in municipal budgeting, particularly with insurance markets and state cost-shifting to local governments. The city's strong revenue performance provides some cushion for absorbing unexpected expenses, but officials must monitor whether these increases represent one-time adjustments or ongoing trends.

The police department's upcoming valorem tax election, if successful, could provide dedicated funding to offset some operational pressures, though the election itself now represents a significant upfront investment.

The complete financial report is available through the city clerk's office, with department-specific breakdowns showing individual fund performance throughout the 2024-25 fiscal year.

The complete July 9th Port Allen City Council meeting is available on the city's YouTube channel. WBR Independent will provide comprehensive coverage of additional council actions next week, including police department modernization initiatives and new community programs.