Mamou Council receives a clean audit report

Burton Kolder, C.P.A., presented the audit report for the 2019 fiscal year to the Mamou Town Council during its meeting
Wednesday.
Overall, Kolder praised the council on a good job with the budget. When it comes to the utility fund, total operating revenues was $1,705,148 compared to 2018’s total of $1,757,335. Total operating expenses was $1,339,018 compared to 2018’s total of $1328,775. Operating income was $366,130 compared to 2018’s $428,560. “You’re positive in every department,” said Kolder to the council. “Many cities are not profitable, especially in sewer. Some are not even profitable in water, but they have other sources of revenue. The city of Mamou has always been good on their departments. Keep up what you’re doing. It is profitable, and that is after depreciation of about a quarter of a million dollars.”
When it comes to sales taxes, property taxes, and franchise taxes, the town budgeted to bring in $904,600 but brought in $951,057. For licenses and permits, they budgeted $138,000 but came in at $140,795. The town missed the mark on intergovernmental revenue when they budgeted $512,500 but only brought in $499,891. They also showed unfavorable variance in the miscellaneous category where they budgeted $133,320 but brought in $63,460. Kolder said it was consistent with 2018’s revenue of $66,627. No one on the council remembered why they budgeted so much in the miscellaneous category. Kolder believes something was miss classified somewhere.
Overall, the town budgeted to bring in $4,484,063 but actually brought in $4,511,428, making $27,365 more in revenue.
As for expenditures, most categories showed a favorable variance, with the exception of Administrative/Judicial, of which the town spent $3,954 more than budgeted, and Public Safety/Police, where the town spent $8,326 more than budgeted. The General Government Administrative category was significant, showing $77,879 was spent less than budgeted. Highways & Streets also showed a significant favorable variance of $76,951. Overall, total budgeted expenditures was $5,063,599, but the town spent $4,796,961, coming in $266,638 less than what was anticipated. “That’s five percent less than budget. That’s great,” said Kolder.
The town initially budgeted to have a deficit of $579,536, but came in with a deficit of $285,533. “It is a deficit, but it is significantly less than budgeted,” said Kolder.
Total assets for the town was $9,213,312 compared to 2018’s $9,135,376. Total liabilities which include accounts and other payables, claims payable, internal balances, customer deposits, and net pension liability comes to $631,512. Overall, the total net surplus which includes net investment in capital assets, restricted sales tax dedications and unrestricted is $8,595,808.
The unrestricted net position total, which is how much the town has on-hand, is $1,848,124, and they spend about $10,400 a day.
“Overall, I think the town is still in very healthy financial shape,” said Kolder. “There are six months of available operations,” which he said is good.
Kolder also said the General Fund is healthy. For the General Fund, total operating expenditures is $2,435,328 compared to 2018’s $2,498,996. The unassigned fund balance is $630,101.
In other business, the council voted to increase property tax millage rates, but it was not unanimous, with council member Charles Reed being the only one to vote no. Reed questioned if they could raise the rates without citizens voting on it. Legally, the council can raise the rates to a certain amount without public voting. The reason for the rate increase is because property values were lowered. By raising the rates, the town will continue to collect the same money they were before the values were lowered. Reed also asked if property values increase, can they lower the millage rates again. Millage rates can be lowered later.
Chief Deputy Assessor Josh Fontenot was on the phone to answer questions. He pointed out to Reed that they would not be passing a new millage rate, but just adjusting it to help keep the town functioning. Ultimately Reed cast a vote of “no.” The old rates are 6.73 mills and 11.49 mills. The new rates are 6.84 mills for general alimony and 11.67 mills for public streets/sidewalks.
The council also introduced an ordinance which would allow anyone to be a food vendor at the Mamou Mardi Gras. In the past few years, they restricted it to only Mamou non-profits groups, but participation has dwindled, and too many times, the same few people volunteer, but they get burnt out after a couple of days, and close early, leaving the festival with little food options. The ordinance opens up the vendor pool by allowing anyone to sell food, as long as they get a permit. The council will vote on the ordinance at a later date.