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CPA firm's analysis shows higher taxes needed to support St George City

Posted on 12/19/14 at 5:16 pm
Posted by LSURussian
Member since Feb 2005
126962 posts
Posted on 12/19/14 at 5:16 pm
LINK

quote:

If St. George successfully incorporates and becomes a new city, the new government and school board would have to increase property taxes by at least 20.5 mills to cover city operational costs and build enough schools to house all the students living in the area, according to a report released Friday by the Baton Rouge Area Foundation and the Baton Rouge Area Chamber.

The two Baton Rouge agencies hired accounting agency Faulk and Winkler to evaluate St. George’s one-page proposed budget and estimate the costs of running a city and independent school system.

At 20.5 mills, the report says, a person with a house valued at $350,000 would pay $720 more in property taxes per year, with the homestead exemption.

The report does note that St. George is estimating a per capita spending of $564 per person, which is significantly lower than the average per capita spending of $1,152 for similarly sized populations.

The report notes that St. George is anticipating spending $30 per person on law enforcement, compared to other cities with similar sized populations that spend between $106 and $342 per person.
This post was edited on 12/19/14 at 5:37 pm
Posted by Asgard Device
The Daedalus
Member since Apr 2011
11562 posts
Posted on 12/19/14 at 5:22 pm to
quote:

The report notes that St. George is anticipating spending $30 per person on law enforcement, compared to other cities with similar sized populations that spend between $106 and $342 per person.


To be fair that's because we already pay EBRSO a separate property tax that is independent of city/parish taxes. One would hope that if EBRSO cut its' patrol presence in half that we could lower the EBRSO taxes for the entire parish. Not by half because they do other things parish-wide but still a significant drop.
This post was edited on 12/19/14 at 5:24 pm
Posted by REG861
Ocelot, Iowa
Member since Oct 2011
36419 posts
Posted on 12/19/14 at 5:22 pm to
Wait, the St. George deal is still a thing?
Posted by member12
Bob's Country Bunker
Member since May 2008
32096 posts
Posted on 12/19/14 at 5:24 pm to
quote:

have to increase property taxes by at least 20.5 mills to cover city operational costs and build enough schools to house all the students living in the area


So we are assuming that all private school students within those boundaries would immediately attend St George public schools?
This post was edited on 12/19/14 at 5:27 pm
Posted by LSURussian
Member since Feb 2005
126962 posts
Posted on 12/19/14 at 5:26 pm to
quote:

To be fair that's because we already pay EBRSO a separate property tax that is independent of city/parish taxes. One would hope that if EBRSO cut its' patrol presence in half that we could lower the EBRSO taxes for the entire parish. Not by half because they do other things parish-wide but still a significant drop.
I'm not understanding what you're saying here. Why would the sheriff cut his patrol presence in half? Or even by any?
Posted by LSURussian
Member since Feb 2005
126962 posts
Posted on 12/19/14 at 5:27 pm to
quote:

So we are assuming that all private school students would immediately attend St George public schools?

No. The article worded it poorly but I'm pretty sure it is referring only to public school students who currently attend EBR Parish schools who would no longer be allowed to attend those schools. They would have to transfer to a SG school.

There was an article on that topic posted on here months ago and discussed ad nauseum.
This post was edited on 12/19/14 at 5:34 pm
Posted by Negative Nomad
Hell
Member since Oct 2011
3173 posts
Posted on 12/19/14 at 5:36 pm to
(no message)
This post was edited on 1/14/16 at 7:53 pm
Posted by Asgard Device
The Daedalus
Member since Apr 2011
11562 posts
Posted on 12/19/14 at 5:37 pm to
quote:

I'm not understanding what you're saying here. Why would the sheriff cut his patrol presence in half? Or even by any?


If SG isn't going to take over law enforcement then their budget isn't too small. In fact, all you really need is enough to have a police chief.

If SG is going to take over law enforcement then your assertion that their LE budget is too small, is valid. However why would EBRSO continue to patrol and police the SG area if that's the case? They don't patrol the city of BR. They could pull out and reduce their presence by 50%. (SG is half of the unincorporated area).

If EBRSO continues to patrol SG then that isn't fair to the city of BR and they should demand the same treatment. They pay the same taxes to EBRSO as SG will.
Posted by LSURussian
Member since Feb 2005
126962 posts
Posted on 12/19/14 at 5:45 pm to
I think I understand what you're getting at and I'm pretty sure you misunderstand how the $30/person was arrived at.

They took the $3 million the SG budget says the new city would pay to the sheriff for extra police protection (to make up for the lost protection of BRPD no longer going into SG when the sheriff requests assistance from BRPD) and divided by 100,000 residents of SG.

So that $30/person is the "extra" allocation for police protection over and above what SG (and BR) residents are currently paying for the sheriff in existing taxes.

At least that's how I interpret how the $30/person was derived.
This post was edited on 12/19/14 at 6:00 pm
Posted by LSURussian
Member since Feb 2005
126962 posts
Posted on 12/19/14 at 5:54 pm to
quote:

700.00 - 1000.00 more would't be a deal breaker for me. But any higher and I'd start reading the fine print.
The Advocate's article says the F&W report says "at least 20.5 additional mills in property taxes" to support the new school system and new city.

I personally think that is way low.

For example, the Zachary school district alone levies 39 more mills of property tax than does EBR school district along with an additional 12 mills for city services.

But this article describes the first "independent" analysis I've seen done on St George's proposed budget and fiscal issues.

So it's a good start for discussion purposes, IMO.
Posted by Kramer26
St. George, LA
Member since Jan 2005
6404 posts
Posted on 12/19/14 at 5:54 pm to
I would like to see an independent report done. I believe the Baton Rouge Area Chamber and the Baton Rouge Area Foundation are looking out for their own self interests and can not issue an unbiased report on this issue.
Posted by LSURussian
Member since Feb 2005
126962 posts
Posted on 12/19/14 at 5:55 pm to
quote:

I believe the Baton Rouge Area Chamber and the Baton Rouge Area Foundation are looking out for their own self interests and can not issue an unbiased report on this issue.
They didn't issue the study. The CPA firm of Faulk and Winkler did.

The BRAF and the BRAC paid for the study. And those organizations have members and board members who reside and/or have businesses in what would be SG.
This post was edited on 12/19/14 at 5:59 pm
Posted by Kramer26
St. George, LA
Member since Jan 2005
6404 posts
Posted on 12/19/14 at 5:59 pm to
Yes, and I believe they paid for the results that they wanted so I question the integrity of that CPA firm.
Posted by GregMaddux
LSU Fan
Member since Jun 2011
18213 posts
Posted on 12/19/14 at 6:05 pm to
How many St George supporters would happily pay that tax though?

If I saw more of my tax dollars spent locally and can enjoy the benefits I wouldn't mind paying taxes.

I don't live in br. Isn't that what the whole movement is about basically?
This post was edited on 12/19/14 at 6:07 pm
Posted by LSURussian
Member since Feb 2005
126962 posts
Posted on 12/19/14 at 6:05 pm to
quote:

Yes, and I believe they paid for the results that they wanted so I question the integrity of that CPA firm.
Okay. So who would you want to pay for an "independent" study? Maybe you?

You wouldn't be questioning the "integrity of the CPA firm" if you had ever had any business dealings with Faulk and Winkler. They have been in business forever and they take their reputation very seriously.
Posted by LSURussian
Member since Feb 2005
126962 posts
Posted on 12/19/14 at 6:09 pm to
quote:

How many St George supporters would happily pay that tax though?
I guess we'll find out when the election is held.

But you have to remember the SG organizers have been telling the people who signed the incorporation petition that no new taxes are expected to be needed for either the new city or the new school system. That statement is still on their official SG website.

So I'll turn your question around and ask you how many of those signers would not have signed if they had been told their taxes will go up if a new city and school district is formed rather than being told they could have everything for free?
Posted by LSURussian
Member since Feb 2005
126962 posts
Posted on 12/19/14 at 6:10 pm to
quote:

I don't live in br. Isn't that what the whole movement is about basically?
Not really.
Posted by Kramer26
St. George, LA
Member since Jan 2005
6404 posts
Posted on 12/19/14 at 6:11 pm to
There has been so much misinformation out there and I just think it is more of the same. I don't trust this study and their calculations.
Posted by LSURussian
Member since Feb 2005
126962 posts
Posted on 12/19/14 at 6:12 pm to
quote:

I don't trust this study and their calculations.

What part of their calculations do you disagree with?

ETA: Signing off for awhile. Going out to dinner....
This post was edited on 12/19/14 at 6:15 pm
Posted by Kramer26
St. George, LA
Member since Jan 2005
6404 posts
Posted on 12/19/14 at 6:18 pm to
All of them. If incorporation is successful the new city council with input from the citizens will determine a budget and what needs to be done regarding building schools. This is not going to happen instantly and will take years. Sure it's possible that additional revenue may be needed but I question the numbers in the study since there are so many variables.
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