With 6.2 mills of property taxes proposed for a levee protection system and wastewater system upgrades, St. Charles Parish residents told parish officials they acknowledged the need but wanted more accountability before they’d pull the lever for the referendums at the May 2 election.
“There should be stringent language,” Catherine Porthouse of Bayou Gauche said at last Thursday’s last parishwide meeting held on the propositions at Edward Dufresne Community Center in Luling.
Porthouse emphasized that, while she agreed with the need and knew about the rising costs, that she still wanted the tax measures to be more specifically worded to ensure the tax revenue is spent as stated.
The meeting drew nearly 60 people, although the turnout was likely lower because numerous other district meetings are being held throughout the parish. The parish administration appealed to the group to support two property taxes: Proposition 1 calling for 4 mills that should generate $4.8 million a year for 30 years for a flood protection system, and Proposition 2 calling for the 30-year renewal of a 2.2-mill tax expected to generate $2.6 million a year for sewer maintenance and upgrades.
If approved, collections on both would begin in 2015.Porthouse was among several people who asked for assurances the money would be spent as stated by parish officials considering the hefty price tag that goes into the tens of millions of dollars for the public works projects.
One of them was Nathaniel Castillo of Paradis who questioned using property tax to pay for these public works projects, as well as maintained taxpayers were already overburdened. Castillo also said it wasn’t fair to hit the property owners and not renters with the price tag.
“I just think we need to think about the taxes we’re paying,” he said.
But Buddy Boe, the parish’s chief administrative officer, replied the parish could not increase sales taxes because it had already hit the state-required 9 percent cap. He also said the wastewater millage was a renewal, not an increase.Also calling it “heavy taxation,” Richard Dropkik of Destrehan strongly disagreed this wasn’t a new tax and that if the Public Works Department couldn’t handle the projects with the current tax then it couldn’t get the job done with the renewed one.
If approved, Boe said the tax renewal would allow for issuing bonds in addition to system maintenance while the current tax only allows for bonds, he said. It would allow funds for a proposed 10-year, $41 million capital projects plan calling for system upgrades including new sewer lines, plants, lift stations and equipment.
But David Wedge of Bayou Gauche argued, “We gave you the money for the sewer.”
Wedge maintained voters earlier approved a sales tax for system maintenance and “the previous administration misrepresented the sales tax revenue.”
Like Porthouse, he said he wanted the proposition to specify wastewater only.
“We’re on a caviar diet with a tuna fish budget,” said Milton Allemand of Hahnville, who also conceded the need for both the levee system and wastewater upgrades, but he was equally critical of the parish government’s proposal to extend the wastewater tax. “We’re getting to be plenty taxed.It’s like taking a second mortgage on your house.”
Dropik wanted more accounting with these tax proposals, saying taxpayers gave them the money for the sewer system years ago. He maintained an earlier sales tax hike had been dedicated to sewer system maintenance, but he maintained, “It wasn’t spent as specified.”
Parish President V.J. St. Pierre Jr. appealed to the crowd, saying after two years of assessing the needs, they determined local funding was the only viable option to fund these projects, saying “Washington is broke” and not one penny of federal dollars was available.
Boe said the propositions were carefully worded by parish attorneys to ensure the money would be spent as outlined.With the levee tax, Public Works Director Sam Scholle pointed to areas of the parish vulnerable to tidal surges and showed photographs of areas flooded by hurricanes Ike and Isaac. Scholle said the flood control system, which is extremely expensive to operate and maintain, must be doubly effective in removing and keeping out water.
Without the tax renewal, he said 2015 projects like the Sunset levee improvements, Almedia and Walker pump station, and Paradis Canal gate structure would have to be put on hold for lack of funds.
Boe also described the need wastewater tax renewal need as dire, pointing to nearly $7 million in general fund transfers to the department to cover five deficits since 2008 and “basically keep the lights on.” Boe cited falling revenue (residential water use falling from 7,600 gallons per household in 1992 to 4,700 gallons this year) combined with rising expenses such as unfunded federal mandates for the budget crunch and infrastructure issues.
Without the tax, he said the department would have a projected $12 million deficit by 2019. The parish has already lost funds not being able to service major industries, which required many of them to provide their own wastewater system, he said.
Craig Daste of Luling said his area already had its own wastewater system yet residents might to have to pay this tax, too.
But Boe said a parishwide service would also serve the industries in his area and promote economic growth. Also, he told Daste they could eventually also tie into the system, which would eliminate smaller systems.
While Allemand praised the Public Works Department as being the most effective he’s seen, he questioned getting state grants for any of the work with its $1.6 billion deficit.Holly Fonseca, parish grants officer, maintained the parish could leverage the tax revenue into the millions of dollars more for projects with bonds and as matching money for grants.
A conservative estimate put the total at $166 million while it could go as high as $287 million depending on the bond market, available grants and other funding sources like the Federal Emergency Management Agency and the state Department of Transportation.
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