Finance report shows Highway 21 sales tax surge; officials flag cash-flow timing and unaudited balances

Annie, finance staff for St. Tammany Parish, told the Finance Committee on an unspecified date that sales tax collections through December 2024 were up 1.5% from 2023 and 1.1% from 2022 and that the Highway 21 Economic Development District is seeing a recent jump in revenues.

The growth matters because the parish budget for fiscal 2025 was set with no growth; Annie said the finance office is “watching sales tax collections very closely over the next few months” and that, based on current trends, staff “may be able to increase our budget by another million, million and a half.”

The Highway 21 Economic Development District collects an extra three‑quarter cent sales tax used for economic development and infrastructure parishwide, Annie said. She gave examples of past uses — the fairgrounds and the airport — and said the district typically brought in about $650,000 a year; with recent development including a Costco, collections have risen to more than $100,000 a month and staff now project roughly $1,200,000 for 2025.

Resident Bruce Weiner asked whether funds collected in an economic development district remain dedicated to that district. Annie responded that while the tax is generated within the district, it can be used parishwide but is limited to economic development under the state economic development act and the Louisiana Revised Statutes. She said portions originally assigned to developers through a cooperative economic agreement (CEA) were paid for infrastructure and that remaining proceeds come to the parish for economic development projects.

Annie also reviewed operating and grant fund balances and noted those figures are unaudited and subject to change as the finance office finalizes prior-year adjustments and completes its cost allocation plan. She said a consultant is meeting with departments to finalize those allocations over the following weeks.

On the parish’s monthly budget-to-actual report, Annie explained January activity is light on recorded revenues because many January cash receipts relate to fiscal 2024 and are posted or accrued back to that year; by contrast, payroll and other expenditures post in January. “That’s one of the things that I wanted to point out to you,” she said, “...the reason that we have those minimum fund balances ... is for cash flow needs.”

Committee members asked about the one-twelfth benchmark shown at the top of monthly reports (8.33% for the month) and the need for narrative explanations when line items exceed expected percentages; Annie said staff provide explanations for notable variances, such as upfront insurance payments.

The committee did not take an adoption vote on budget figures in this meeting; staff presented the monthly finance reports for committee review and questions. The committee then moved to the ordinance calendar.