Claire Taylor

ctaylor@theadvertiser.com

The Lafayette Parish general fund "is going bankrupt."

That statement came Tuesday from Burton Kolder of Kolder, Champagne, Slaven and Company CPAs, as he presented the annual audit of Lafayette Consolidated Government for the fiscal year that ended Oct. 31.

Much of the parish budget revenue was dedicated by voters for a specific use and fund. For instance, if one fund, such as the parish libraries, has a substantial nest egg, that money cannot be used for drainage.

"You can't do that. It's illegal," Kolder said.

READ MORE: Will failed jail, courthouse taxes hurt parish drainage?

Officials could use parish general fund money if the drainage fund doesn't have enough money, but the general fund is quickly being depleted. Sales tax collections in the parish fell more than $1 million between the 2014-15 and 2015-16 fiscal years, Kolder said.

As of Oct. 31, the end of the 2015-16 fiscal year, the parish fund balance was $1.7 million, down $2.1 million from the previous fiscal year.

He called the situation, "pretty much a critical stage."

At the end of the 2014-15 fiscal year, the parish general fund had enough money in reserve to operate 80 days, Kolder said. By Oct. 31, it had only 22 days' worth of funds left. And it has even less today, Chief Financial Officer Lorrie Toups said.

Governments, Kolder said, are required to have at least 60 days in reserve. Toups, who worked in the New Orleans area during Hurricane Katrina, where governments had no income coming in for six weeks, said she strives for a 90-day reserve.

RELATED: Parish budget faces $10 million in cuts with failed tax renewals

Voters in April failed to renew two parish property taxes to fund the parish courthouse complex and the jail. Officials may bring those issues back to voters in November, before they expire.

Budget preparations are under way for the 2017-18 fiscal year that begins Nov. 1.

"I like to fix things," Councilman Kevin Naquin said. "But I can tell you, I don't know how you fix it."

Kolder replied, "The only thing I can see you can do is reduce services," including shutting down part of the jail and reduce services at the parish courthouse.

In contrast to the parish general fund, the city of Lafayette is in healthier financial shape. Property taxes increased by about $1 million in the past fiscal year, Kolder said, while sales tax collections fell about $1.1 million. The city general fund had a $6.8 million balance at the end of October 2015 and $5.3 million on Oct. 31, 2016.

The city also has 202 days' worth of money in reserve, three times more than required, he said.

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