Council projects ‘what if’ tax effect

By KEVIN BLANCHARD
Acadiana bureau
Published: Aug 15, 2006


LAFAYETTE — Should voters in November approve a new 1-cent sales tax in Lafayette, it will fund more than double the amount of infrastructure improvements budgeted for the next 10 years — and do so faster, officials said Monday.

The City-Parish Council met Monday to review the proposed capital improvements budget for the next five years — funded under the current 2 cents of the 8 cents collected in sales tax in Lafayette.

In July, voters approved bonding an additional $215 million backed by revenue from those two pennies.

The administration is proposing a new 1-cent sales tax — bringing the sales tax in the city of Lafayette to 9 from 8 percent — that would back a $450 million bond proposal.

The administration has released what projects that new tax could fund over the next 10 years, but the council did not have the list available Monday.

Instead, the council looked at the “what if” capital budget should voters not approve the new tax.

Under the budget, two major road projects would be built over the next two years — East Pont des Mouton Road and a portion of Louisiana Avenue.

The money from the newly approved bond issue comes through in a trickle in the next two years because some of the sales tax revenue is dedicated to paying off previously issued bonds, Chief Financial Officer Becky Lalumia said.

Only after some of those old bonds are paid off — starting in the third year of the program — could the city tap into more bond proceeds.

But with a new sales tax, all of its proceeds could be dedicated to backing new bonds — which means the money would come in quicker, allowing more capital projects in the first few years, Associate Public Works Director Pat Logan said.
“It’s going to be quite an aggressive program,” Logan said.

Over the next three years, the city could spend about $167 million toward capital projects — including not only the new bonding authority, but also the additional pay-as-you-go money that would be freed up by not bonding out the $215 million just approved, Logan said.

On Aug. 22, the council is scheduled to mull over the feasibility study detailing what projects will be built with a potential new sales tax.

If they approve, the administration would on Sept. 5 ask the council to approve putting the sales tax proposal on the Nov. 7 ballot.

The council meets at 4 p.m. Thursday to review several other sections of the budget, including parish agencies such as the Clerk of Court, District Attorney’s Office and jail, as well as the Cajundome.

Story originally published in The Advocate

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