Maybe Monroe policy-makers should think outside the box if they want to pull the city off its fiscal knife-edge and give employees a raise—without hitting up taxpayers for more dough.

At the last City Council meeting, which appended a budget hearing onto it, some councilors pushed for annual salary increases–perhaps at the 2.5 percent level–for city employees. Some also wanted more money for recreation facilities. The problem? There’s no money for any of it.

The proposed fiscal year 2026 budget shows a roughly $2 million, or three percent, revenue boost in the general fund—the main pot for city operations. But raises at the suggested level would gobble up more than half of that increase, given that salaries, wages, and benefits comprised 69 percent of the FY 2025 budget. Indeed, 70 percent of that increase was going to public safety which consumes 40 percent of city spending, meaning this function would bear the brunt of any redirection of revenues at current levels.

So, the idea of a property tax increase was floated, since a recurring revenue source is needed. But with little surplus in recent years, the general fund balance has hovered flat around $19 million, leaving no cushion. About three mills would cover salaries, and even more would be needed for recreation (which already has its own dedicated property tax).

Taxing its way to higher spending isn’t a viable solution, especially since property tax revenue has grown at only about one percent annually over the past decades—too slow to sustain raises. Even factoring in sales tax revenues, which have historically grown at two to three times that rate, total city revenues have averaged just 1.8 percent growth per year over the last decade. Without a substantial tax hike, committing to 2.5 percent raises would stress the city’s finances.

And taxpayers are already feeling that stress. Monroe’s current property tax rate of 26.37—rolled back last year from 27.02 after quadrennial reassessment—is the third highest among major Louisiana cities (though its combined rate with other Ouachita Parish taxes ranks in the bottom half of higher-populated parishes). Worse, Monroe’s 10.44 percent combined sales tax rate is among the highest in the country, with a few Louisiana jurisdictions even higher.

That means the city needs other options. One starting point: reconsidering the over $4 million in general fund transfers to enterprise funds. The FY 2026 budget has it sending a few hundred thousand to the Zoo and Civic Center, but about half goes to Monroe Transit System.

The city should investigate privatization or at least a public-private partnership to run city transit. Fares account for only about 4.4 percent of all revenues, a number that continues to shrink in line with national bus ridership trends. Even with the transfer approaching $2.5 million, Monroe Transit is projected to lose nearly $1 million in FY 2026. A fare hike wouldn’t be unreasonable, but plenty of real-world evidence suggests that private operations could reduce costs enough that the general fund subsidy could decrease enough to support some kind of annual salary adjustment, even if not at the full 2.5 percent level.

And, as is good practice, there should be a compensation study prior to any pay raise proposal to see whether Monroe city salaries are significantly lower that peer cities, by how much and in what categories, for a better targeted response (the Council from last term helped its future self out and the mayor’s spot to a pay hike without such an effort, although on the present Council only Republican Doug Harvey voted for these). But if a citywide pay increase is desired, operating efficiencies rather than tax increases need to fund it.