Opelousas council discusses rainy-day fund, employee pay and car-allowance changes ahead of budget vote

Opelousas councilors discussed additions to the draft budget that would create a deferred-maintenance fund for water and sewer infrastructure, keep a planned 2.5% pay increase for municipal employees and forward a recommendation on city car allowances to a special meeting.

Council members and staff discussed ways to seed a maintenance reserve, including dedicating a small percentage of utility surpluses or setting a threshold on sales-tax revenue that funnels excess into savings. City staff said LDH loan proceeds and bonds are restricted for certain uses and cannot be repurposed for general maintenance; that limits some options for funding day-to-day needs at the plants.

Miss Roberts (finance staff) confirmed the current draft budget includes a 2.5% pay increase for municipal employees but not the 1% tax increase; staff explained the 1% sales tax would begin collecting in October and revenue would be available to the city in November. Council members noted the city will need to amend the budget later to account for new revenues and any contract or management costs the council approves.

On a separate item, the council recommended that only the mayor and council receive a car allowance and that the additional money flow into a rainy-day fund; that recommendation was forwarded to a special meeting on Aug. 28 for action. The recommendation to the full council regarding third-party utility management will remain on the Sept. 9 docket for budget amendment consideration to fund management and training if approved.

Councilors asked staff to prepare specific line-item language and dollar estimates for the proposed rainy-day account so the council can consider precise budget amendments at the next meetings. The council did not finalize the fund size; members discussed options ranging from a nominal monthly set-aside to a percentage of utility surpluses.