Group readies growth
proposal
Official: Sales tax idea ‘out in left field’
By KEVIN BLANCHARD
2theadvocate.com - Acadiana bureau
Published: Feb 24, 2006
LAFAYETTE — The Greater Lafayette Chamber of Commerce is
putting together a proposal on what should be done in Lafayette Parish to raise
money for infrastructure improvements to keep up with growth.
Last month, City-Parish President Joey Durel issued a call for the community to
present ideas to meet the parish’s growing needs.
The chamber’s technology and governmental affairs committees have answered the
call and hope to have a plan presented soon, Technology Committee Chairman Karl
Breaux said Thursday.
With the increased demand on state and federal budgets for hurricane-related
spending, Lafayette has to figure out how to meet its own needs, Breaux said.
“It’s almost a situation where we’re going to have to take care of ourselves,”
Breaux said.
Several ideas are on the table, including special taxing districts to fund
transportation projects with economic development potential, increasing the
city’s bonding authority, a local-option gas tax, development-impact fees and
an increase in sales taxes, Breaux said.
Of all the ideas, the sales tax idea is “way out in left field,” Breaux said,
but more feasible than a property tax, as people who come into Lafayette from
out-of-town to shop would also share in the burden of improving the roads.
Any plan would have to include a great deal of accountability to ensure that
the money raised would be guaranteed to be spent on specific projects —
otherwise the public would not get behind the plan, Breaux said.
The chamber’s transportation committee met twice in February on the issue and
will meet jointly with the governmental affairs committee on March 15.
Breaux said the larger chamber board would also have input.
Chamber President and CEO Rob Guidry said the process has been “expedited” to
come up with a plan sooner rather than later.
Time is of the essence. The next proposition election will be held in July —
the deadline to place items in that election is May.
City-Parish Chief Administrative Officer Dee Stanley said the administration
will ask voters to authorize the city to borrow more money — about $150 million
over the next 10 years — based on existing tax levels.
But that approval would only allow the city to pay for projects that have
already been on the books for years, not any new projects, Stanley said.
Tax increment financing districts can be set up where a specific area’s tax
collections are used to leverage a bond issue to fund infrastructure
improvements.
There are some situations where a TIF would make sense, Breaux said.
Having developers pay a fee to go to infrastructure improvements necessitated
by their developments is another option, Breaux said.
A local-option gas tax is where local voters approve a gas tax to be collected
and spent for improvements within their own area — but is prohibited by the
state constitution.
Members of the Acadiana delegation have said they will propose a change to the
constitution this coming regular session so that local governments can ask
their voters for permission to levy such a tax — which are common in other
states.
The measure, which has failed in the past, is likely to face opposition, Breaux
said.
Proposing a new sales tax has been discussed, but it’s “very, very disputable,”
and an “unlikelihood,” Breaux said.
“It’s hard to go to me or you or anyone who’s working and tell them you want
more money from them” Breaux said.
Of course, there’s a “general consensus” in Lafayette that more roads are
needed, Breaux said.
Lafayette’s experienced “obvious growth” and has potential for more growth, but
“certain things have to occur in order to accommodate that growth in a smart
fashion,” Guidry said.
Stanley said the administration is open to all suggestions.
If voters decide not to approve additional authorization or any other
“potential revenue measure” that surfaces, then the administration will work
within the existing means, though infrastructure work will “slow down
dramatically,” Stanley said.