ELTON, La. — The Town of Elton has cut the salaries of its mayor and chief of police in half as the municipality works through years of accumulated debt, including back payments owed to a state retirement system and the IRS.
Mayor Michael Pierrotti said the financial problems predate his time in office.
"We were in so much debt. You know, things weren't paid. We couldn't even buy — one time when I came in, we couldn't even buy a copy of paper or ink for our printers because the bills hadn't been paid," Pierrotti said.
Salary cuts and their impact
The pay reductions took effect within the last week and a half. Pierrotti said the cuts bring both positions below entry-level wages at many private employers.
"If you take those numbers, you're looking at roughly — on the mayor, you're looking at $11.97 an hour, and the chief of police— that equates to $10.93 an hour. We could both go to work for McDonald's and have a lot less stress," Pierrotti said.
Pierrotti said he vetoed the council's salary reduction measure, citing concerns about future recruitment.
"I'm not faulting the council in their motive. I guess my biggest objection is what we're going to offer a new administrator, a new chief, or a new mayor to spend the time that's going to be necessary to continue what we've accomplished. My motive is not for myself but to make sure that we have a good candidate run for chief and for mayor. So I vetoed it," he said.
Roots of the debt
Pierrotti says the issue at hand is a result of years of mismanagement predating his term as mayor. He adds that the town's financial structure was unsustainable for decades.
"For the last 25 years, the town has not had a budget that was based on revenue. The town of Elton relied on the Coushatta Tribe for revenue, which could be $700— $800,000. When the past governor left, Bel Edwards, they dissolved that compact so they had no obligation," Pierrotti said.
The loss of tribal funding brought the situation to a head. Payments from the Coushatta Tribe had historically covered approximately 80% of the town's budget— compensating Jeff Davis Parish cities for casino-related wear and tear. This past year marked the first time in years that the town built a budget based on its own revenue.
Outstanding debts
When Pierrotti took office, the town owed more than $1 million to MPERS — the Municipal Police Employees' Retirement System — in payments dating back 10 years. That debt was resolved last week.
The town also owes four years of 941 payments — federal payroll tax withholdings — to the IRS. Pierrotti said that obligation is expected to be addressed within the next month.
The outstanding federal debt has limited the town's ability to pursue grants. The town has downsized to five employees, including the mayor and chief of police.
Path forward
Pierrotti said he believes the town can recover, but acknowledged the constraints ahead.
"I see a way out. It's just going to take time and just with, you know, limited revenue now, you're kind of handicapped on what you can do. At some point I'm hoping that a young individual will run that truly cares for the town and its people, to continue what we've done to get us out of the hole we're in. Because it's a super place to live. I've been here for 75 years. So, I want to see us succeed in every possible way," Pierrotti said.
