(The Center Square) — Tax rates, loans, and bonds for local governments were discussed and approved during the Louisiana Bond Commission meeting last week.
The only agenda item regarding taxes was for approval of an increase in millage rates, or property taxes, for the Calcasieu Parish and city of Lake Charles.
The approval of the agenda item on Friday wouldn’t put it on the Nov. 5 ballot. These proposed tax increases wouldn’t be up for voters until Oct. 11, 2025, and the tax increase, if approved, wouldn’t take effect until 2027.
The new millage rates would last for 10 years, through 2036, and would be used for the maintenance of public buildings, streets, bridges, playgrounds, recreation centers, equipment, and a police three platoon system. Increased property taxes would also help improve starting salaries previously authorized for employees of the police, fire, public works and other departments.
The commission also approved $180 million in revenue bonds for the Ragin’ Cajun Facilities, Inc. – University of Louisiana at Lafayette Energy Project, not exceeding 6% tax exemptions, 7% taxable, and a maturity of 32 years.
This provides for the acquisition, construction, renovation, improvement or repair of utility infrastructure, energy plants, buildings and related facilities on campus, funding a debt service reserve fund, and funding capitalized interest.
Cash flow borrowings refers to a type of loan where a business borrows money based on its projected future cash flow, essentially using its expected future income as collateral to secure the loan. Five parish divisions requested these at different amounts, and all were approved by the commission.
The Orleans Parish School Board received the most in revenue anticipation notes, $50 million, not exceeding 6%, and it matures no later than June 29, 2025. The Livingston Parish Law Enforcement District was second with $7 million and it matures on July 1, 2025. Lafayette Parish Assessment District was third at $1.3 million and it matures as soon as March 31, 2025.
The commission also approved one loan for the Fiscal Administrator Revolving Loan Fund in the city of Homer. According to the state treasurer and Commission Chairman John Fleming the city is in economic shambles and in desperate need of the fiscal administrator.
The current one, David Greer, retired and has been working for free to alleviate the city’s issues, so this loan allows him to get paid a salary.
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He was asked how long he thinks it will take before the city is back where it needs to be financially and he said he’s unsure because of how many issues there are. His hope is that the state can relieve him of his duties by the end of 2025.
Many bonds were approved by the commission in this meeting as well, including for the Juban Crossing Economic Development District, the Visit Baton Rouge Center, the city of Franklin, and a few housing corporations.