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Abita Springs council flags shortfalls, introduces 2025 budget-amendment ordinance
Summary
Council members pressed staff on lower-than-expected water and sewer revenues, an over-budget software subscription and the need to separate one‑time grants from recurring operating revenue; the ordinance to amend the 2025 operating budget was formally introduced for later adoption.
Abita Springs town staff presented July financial statements on Sept. 23, showing pressure in several funds and prompting the council to introduce an ordinance to amend the 2025 operating budget.
Michelle, a town finance presenter, said operating revenues in the general fund were $934,000 through July (about 65% of the year) and warned that some items are running ahead of budget, including a Tyler Technologies subscription that was flagged as about 190% of its line-item budget. Staff also reported that water revenues were about $259,000 (51% of budget) and sewer revenues $379,000 (48% of budget), and recommended a slight amendment to account for those shortfalls.
Council members repeatedly urged separating non-recurring grant and loan inflows from operating revenues so that recurring-cost metrics (for example, salary percentages) are not distorted. One member said large one-time grants “throw us off year to year” and asked staff and the CPA to present future budgets with grant and loan monies shown distinctly from recurring operating revenue.
Members asked for more line-item detail. Staff said the proposed amendment breaks previously aggregated general-fund figures into categories (ad valorem, sales tax and dedicated revenues) to improve oversight and that two funds—park & rec and debt service—exceed the 5% variance allowance and will require formal amendment. The administration also noted planned reallocations from the general fund to the utility fund to better reflect sewer-related engineering costs and to fund anticipated testing.
The council discussed bond and reserve options. Staff reported contingency and reserve requirements tied to older loans and said the bond attorney is reviewing whether an early payoff or defeasance of one small bond (payoff ~ $103,000) is contractually possible and advisable.
A timeline: staff expects the ordinance introduction to return for formal adoption at the Oct. 21 meeting and reminded members that the legal deadline to adopt the 2026 budget is the third Tuesday in December. The council introduced the 2025 budget-amendment ordinance on Sept. 23; associated line-item reallocations and proposed changes will be reviewed at subsequent meetings.
The meeting record shows staff will prepare additional information requested by the council: a clearer separation of grant/loan receipts from operating revenues, a 10‑year projection for cemetery/perpetual-care funding, detailed reallocations for engineering and testing costs, and updated three-year (2023–2025) trend data to guide the 2026 budget process.
