Sheriff plans to borrow money to satisfy shortfalls

Published 12:00 am Saturday, August 11, 2012

By ROBIN SHANNON

L’Observateur

LAPLACE – With his office’s cash reserves down over the past few years, St. John the Baptist Parish Sheriff Mike Tregre said Tuesday he plans to borrow as much as $3 million to satisfy some shortfalls until property tax payments begin rolling in at the beginning of next year.

Incurring debt in this fashion is a common practice among Louisiana sheriff’s offices as the fiscal year begins July 1, a full six months before property taxes, which pay the bulk of operations expenses, become due in early January.

St. John Chief Civil Deputy Jeff Clement said previous Sheriff Wayne L. Jones had borrowed money prior to 2005, but was able to build up a comfortable cash cushion over subsequent years that helped pay expenses in the early part of the fiscal year. Clement said the Sheriff’s Office last borrowed money in 2011, when Jones took out a $1.2 million loan for operations expenses. The interest on that loan was about $3,000. The office spends about $23 million per year.

Clement said the Sheriff’s Office anticipates having to borrow between $2.5 million and $2.6 million but added that certain circumstances could increase that total.

“The rising cost of health insurance and the fluctuating costs of fuel are some of the contributors to the cash flow problem,” Clement said. “We are going to be taking a look at some things to see what we can do to reduce costs.”

Tregre, who took office July 1, said his office spent money on new uniforms and new equipment but noted that he plans to dramatically reduce the number of vehicle purchases made this year. He also said he is looking into grants to fund purchases of radios, technical equipment and Taser stun guns, adding that the St. John Sheriff’s Office is the only one in the metro New Orleans area without them.

Tregre also said the loan is necessary to ensure the office has money available in the event of a hurricane or other emergency that would require extra patrols and overtime hours. He also wants to look into improvements to the parish jail, which the Sheriff’s Office owns and operates.

Tregre said the loan, which comes with a very low interest rate, is something he hopes he does not have to do very often, saying he would rather rely on a more stable cash cushion.

“I’m not a person to borrow money,” Tregre said. “Not even in my personal life. I hope to eventually wean us off of this. There are some sheriff’s that have to do this every year, while others live comfortably. I want to have this office running comfortably.”

Clement said the loan request will go before the bond commission in September. He expects the entire loan to be paid back by Jan. 10, when property taxes are normally dispersed.