Council questions Saint George revenue split and use of $4.6 million franchise-fee windfall

Council members used the budget hearing to press Finance Director Angie Savoie about the budgetary impact of the recent incorporation of the City of Saint George and a surprise increase in franchise-fee revenue.

Savoie told the council that when Saint George incorporated and voters approved a 2 percent municipal tax for that area, the parish sales-tax share for that geography was replaced; she said Saint George now receives the municipal collections within its boundaries. She estimated the annual amount at approximately $50 million to $54 million and explained collections are remitted monthly with a lag: July collections were not remitted to Saint George until September due to the collection and distribution calendar.

Councilwoman Rocca and others asked where the newly discovered franchise-fee revenue had been spent. Members said the revenue had been estimated at $3.5 million but interim receipts suggested the franchise fee would generate about $4.6 million. Rocca said portions were distributed to council districts for local projects and that some money was earmarked for constitutional offices and public safety. "Those dollars went to a budget that wasn't balanced," she asked; Savoie said the funds were appropriated by budget supplement in 2025 (about $3.2 million) to offset projected overages and to support general fund needs.

Council members sought clarity on ongoing intergovernmental reimbursements: Savoie said municipalities pay collection charges under an ordinance (about 3.6 percent) and that the parish reconciles and distributes municipal shares. She also said an intergovernmental agreement governed any temporary retention of receipts during the transition to municipal collections.

No formal action was taken; councilors asked staff to provide more detailed accounting of where franchise-fee and intergovernmental reimbursements were applied in 2025.