Parish releases 2026 proposed budget with $180.8M in revenues; Sales Tax District 3 funds drive capital spending
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Summary
Finance staff presented a $180.8 million proposed 2026 budget that relies heavily on restricted sales-tax revenue, shows a general fund shortfall, and proposes $53 million in capital spending largely funded by Sales Tax District 3.
Annie, a finance presenter for St. Tammany Parish, told the council that the parish’s proposed 2026 combined budgeted revenues total about $180,800,000.
The budget overview presented Tuesday said general fund sources account for under $16 million of the total, while special revenue and capital project funds—mainly sales taxes—make up the bulk. Annie said the capital program for 2026 totals roughly $53 million across 168 items, including 92 infrastructure projects, and that Sales Tax District 3 would provide about $46 million—about 87 percent—of the parish’s capital expenditures.
Why this matters: Sales Tax District 3 is legally restricted to roads, bridges and drainage, and those restrictions limit what the parish can use those collections for. Annie told the council the district’s collections were budgeted conservatively; the presentation assumes no growth in most sales taxes but an expected $5 million increase in District 3 collections based on 2024–25 trends.
Major budget figures and structures Annie said the parish is proposing approximately $180.8 million in revenues and roughly $197 million in total proposed expenditures before other financing sources and uses. She described the composition of parish spending: personnel services, operating costs, pass-through payments (to entities such as the library and coroner), and infrastructure expenses are the largest categories. The total salary-and-benefit budget for 2026 was presented at about $46 million.
General fund and fund balance The presentation shows the 2026 general fund revenue estimate at about $15–16 million. To balance required costs the administration proposes using about $6.1 million in one-time transfers (including Deepwater Horizon capital project funds, Justice Center sales tax proceeds, jail sales tax funds and ARPA) plus $1.9 million of excess 2024 fund balance. After proposed expenditures and the parish’s minimum-fund-balance policy, Annie projected an available general fund balance of roughly $46,000 at year end, noting the figure “makes me nervous.” The minimum policy includes one year of gross ad valorem ($7.7 million) and other cash-flow reserves because many tax and grant receipts are not received monthly.
Sales Tax District 3 and capital program Annie said public works’ fund (which holds Sales Tax District 3 accounting) would show roughly $94 million in tax collections and about $6 million in other sources, leaving about $100 million available in 2026. The presentation showed a funnel of uses: about $35 million for operations and maintenance (personnel, supplies, utilities), $35 million in capital projects (with additional capital funded from fund balance), $15 million shared with municipalities under existing agreements, $6.6 million in debt service and roughly $6.5 million in cost-allocation charges (administrative support). She emphasized that by statute the district’s proceeds may only be used for roads, bridges and drainage.
Debt and other notes Annie described six outstanding debt issuances (two for Sales Tax District 3, one for GoMESA, and three for utilities) and noted utility debt presented in an enterprise fund because utilities are accounted for as business operations. She said the parish had fully paid a coroner and library issuance during the current year, lowering overall debt service.
Next steps and context Annie asked council members to review the budget book sections she described—introduction, financial policies, operating ordinance (the adoption instrument), departmental schedules and the capital ordinance—and offered staff follow-up sessions. The council also raised specific questions during the presentation about Sales Tax District 3 uses, fund balances, and utility revenues. The parish will proceed to formal adoption steps and any required amendments during the public hearing and ordinance process.
Ending: practical limits on funds Several speakers underscored the limits that revenue restrictions impose: taxes labeled for a purpose cannot be repurposed for general operations. Annie repeatedly warned that assumptions—especially on millage rates set by other agencies—would require budget amendments if those outside bodies adopt different levies.
