Shreveport voters face tough call on tax hikes

Blog: Between The Lines

Abstract

It's a tough call this Saturday on Shreveport
approving property tax hikes – necessary bromide or throwing good money
after bad?

Across
three proposals, the city plans to raise around $256 million for capital
items. Almost half would go towards roads, streets, bridges, and surface and
subsurface drainage systems (2.45 mills), while nearly a third would go to
water and sewerage systems (1.6 mills), with the remainder going to public
safety, buildings, and recreation (0.95 mills). Unlike measures to fund continuing
government operations, the millages will vary depending upon bond issuance
amounts and timings, with the city estimating 2027 would be the first year initial
millages would be added to tax bills. Eventually, it predicts the total millage
almost will double to close to 8 mills.

Regardless, success of any item at the polls will
push Shreveport further into the category of the highest-taxed city without consolidated
government in Louisiana. Republican current Mayor Tom Arceneaux's
predecessor Democrat Adrian Perkins three
times attempted to have bond issues, around that neighborhood of a
quarter-billion dollars give or take a few dozen millions, in various packages
gain voter approval. His first attempt resulted in complete rejection at the
polls, his second couldn't get City Council assent, and in his third only one
of five measures, about $71 million dedicated to public safety, passed voter
muster.

Of course, the electorate quickly became distrustful
of Perkins partly because of the opaqueness of spending plans and partly
because of other shenanigans in his administration that eventually led to his ouster
upon his trying for reelection. Undoubtedly this played a hand in the
rejections, but this isn't a problem Arceneaux should encounter. In great
contrast, his term to date has featured little drama and the city has bent over
backwards to inform the citizenry about the items to be funded and process to
get there and stated its case for their acceptances, as well as publicizing progress
made on the projects associated with the 2021 hike.

Even with potential skepticism likely mooted, the
items face choppy waters. It's a new tax on the books for at least 20 years and
as many as 30, and the total property tax bill faced by city property owners,
if all measures pass, likely eventually would push their rates into the stratospheric
range of 160+ mills (by contrast, the typical Bossier City homeowner pays about
130, and that's one of the highest in the state).

As well, a question remains about why the city
needs to do all of this when it is shrinking in population. Unfortunately, its
decline isn't uniform; the closer to the city center, the more pronounced it
is, while radiating outwards is new building and hence more infrastructure
demands. Further, the consent
decree over its water and sewerage systems continues to make voracious
monetary demands.

As a result, the most urgent of the three is #2,
which in the main replicates the critical projects that comprise work to
fulfill the consent decree. Legally, the city must pursue these and is behind
schedule. In voters' minds, #1 also may have some criticality, as it addresses
public safety even though most of the spending would occur on buildings and
recreation, since they have shown a willingness to back things associated with
public safety. In light of these, #3 seems the most optional where voters might
be tempted to endure problematic roads and poor drainage in places (if they
ever run into these).

Past recent elections show Shreveport voters
willing to act strategically, so it's not out of the question that they wouldn't
produce a clean inning – three up and three down. Yet the fact remains that for
a city in decline a tax increase is the worst medicine possible that makes it
even less amenable for population and wealth growth – unless fixing the items
removes impediments even more likely to keep the city's fortunes from
reversing.

That noted, voting for #2 can help to solve very
pressing needs, while the other two don't rise to that level. Voters will have
to engage in strategic calculation on this trio.