BOBBY SIMPSON
MAYOR-PRESIDENT

2003 METROPOLITAN COUNCIL MEMBERS

Ulysses Z. Addison, Jr.
James T. "Jim" Benham
David J. Boneno
Lorri Burgess
Wayne Carter
Pat Culbertson
Joseph "Joe" Greco
Charles Kelly
Darrell P. Ourso
Byron Sharper
Martha J. Tassin
J. Michael "Mike" Walker

January 1, 2003

Dear Citizens of East Baton Rouge Parish:

The purpose of this pamphlet is to provide a brief summary of selected highlights from operating budgets for the year 2003.

The legal framework for financial management of the City of Baton Rouge and Parish of East Baton Rouge (City-Parish) is largely established in a Plan of Government approved by local voters in 1947. That plan requires the adoption of annual operating budgets for various governmental functions. In accordance with this plan, the local government in December 2002 adopted annual operating budgets for the year 2003. At that time, a $221 million general operations budget was approved, along with a number of budgets for special operations, for a grand total of $529 million. All of the annual budgets referred to above are published in a document entitled Annual Operating Budget, which is available for review by the public at parish libraries or the City-Parish Finance Department – Budgeting Division located at 222 St. Louis Street, Room 452 (phone 389-3067). 

The City-Parish has separate budget processes for some state and federal grant programs as well as for capital improvement programs such as street construction and public building construction. A summary of recurring grant programs and capital improvement programs is included in the Annual Operating Budget.

THE BUDGET PROCESS

Allocation of revenues is determined through the budget process. This process begins with the presentation by the Mayor-President (Mayor) of his goals and objectives for the City-Parish.  Departments then determine their own goals, which should fit into those of the City-Parish as a whole, and submit their budget requests to the Mayor.  The Mayor reviews these requests with his staff, department personnel, and interested members of the Metropolitan Council (Council).  After considering the needs of the community, established policies, current financial conditions, and the forecasted economy, the Mayor formally proposes operating budgets to the Council for all operations that require such budgets. The Council then considers the Mayor's proposals, holds public hearings, and enacts final budgets, which may be different from those proposed by the Mayor.  These adopted annual budgets become effective on January 1.

Responsibility for the administration of the annual operating budget is shared between the Mayor, through the Chief Administrative Officer, the Finance Director, and the staff of the Finance Department-Budgeting Division; and the Metropolitan Council, through the Council Administrator-Treasurer and the Council Budget Officer.

GENERAL OPERATIONS (GENERAL FUND)

As shown in the chart below, the 2003 budget for general operations, amounting to $221 million, is financed primarily through sales, property, and public utility taxes:
 

The following chart shows the functions for which general operations money will be spent in 2003:

SPECIAL OPERATIONS (SPECIAL FUNDS)

About 42% of the spending authorized in the annual operating budgets relates to the budget for general operations discussed in the preceding section. The remaining authorized spending pertains to the smaller budgets for special operations or activities. The most common reason for having separate budgets for these activities is that the revenues supporting them are legally dedicated to a specific purpose. Programs funded through these special budgets include:

• Fire Protection for Rural Areas 
• Pay Enhancements for City Firefighters
• Downtown Development District
• Mosquito Abatement and Rodent Control
• Operation of the Library System
• Street Maintenance Programs
• Emergency Medical Services
• EBR Parish Communications District
• Garbage Service for Rural Areas
• Road Lighting for Rural Areas
• Animal Control Center
• Operation of the Riverside Centroplex and Parking Facility
• Repayment of Long-Term Debt
• Mass Transit Service
• Operation of Sewerage Systems
• Operation of the Sanitary Landfill
• Operation of the Local Airport
• Support for City Constable
• Provision of Social Services
• Employment Training and Opportunities
• Community and Economic Development
• Gaming Enforcement Services
• Equipment Repair and Maintenance
• Equipment Replacement for Public Works
• Employees' Retirement Funds

2003 FUNDING HIGHLIGHTS

Among the more noteworthy features of the 2003 budgets are the following:

• Collections of sales taxes, the largest single source of revenue for the City-Parish General Fund, decrease during 2001, but revived somewhat during 2002. The 2003 budget anticipates 1% growth over 2002 collections.
   

• One of the few large increases in an otherwise standstill budget is $1.2 million for raises for police officers. Increases were also budgeted for communications personnel, professional librarians, and EMS medical personnel. The budget includes $100,000 for a salary study to make recommendations for a more equitable and competitive pay structure for all employees.
   

• The cost of employee benefits continues to rise, especially for health insurance and retirement contributions.  To offset future increases, a vesting program was established that will affect the employer's contribution for retirees' insurance premiums.
  
  

• On March 14, 2002, the City-Parish signed a Consent Decree with the federal EPA and state DEQ. This Decree commits the City-Parish to spend approximately $618 million over the next 13 years to minimize sanitary sewer overflows. Four Supplemental Environmental Projects will also be constructed as part of the Consent Decree. These projects will redirect septic tank discharges from neighborhood waterways into new sewer lines where the effluent will be treated at a sewer treatment plant. The 2003 budget is consistent with the long-range funding model for the sewer program.
  
  

• Work continues on the various projects for the redevelopment of downtown Baton Rouge. The new planetarium and space theater should be open early in 2003, and construction has begun on the expansion of the Riverside Centroplex.  Funding for these projects comes from both state and local sources. The 2003 budget also includes a contribution toward the new Arts Block, as well as funding for additional downtown parking facilities.
   

• In an effort to simplify interaction between citizens and their local government, a project known as e-government has been initiated. Citizens will be able to perform certain transactions over the telephone and the Internet. Five core processes are being implemented: sales tax remittances, traffic ticket payments, business license renewals, permitting and inspection, and citizens' requests for services. These services will be available 24 hours a day, seven days a week.
  

CONCLUSION

The high quality of our budget is evidenced by our receipt of the Distinguished Budget Presentation Award of the Government Finance Officers Association of the United States and Canada (GFOA) for our budgets for each year from 1991 through 2002. This is the highest form of recognition in governmental budgeting, and we hope to win this honor again in 2003. In addition, we were awarded the Louisiana GFOA Outstanding Budget Award eight times in the nine years that it was offered.

I would sincerely appreciate any comments from the citizens of our community relative to the budget. All citizens are invited to attend the budget hearings held in November and December of each year. Anyone interested in attending should contact the Finance Department, Budgeting Division, at 389-3067 or the Council Budget Office at 389-3051 in early November of each year to obtain the schedule.

Sincerely yours,

Bobby Simpson
Mayor-President

QUICK REFERENCE PHONE NUMBERS