With the election coming up, property owners in New Orleans may have to start saving a little extra if the $26.6 million tax increase - aimed to beef up police staffing and take care of a firefighter pension settlement - gets the voters' approval, The Times-Picayune reports.
Voters will have to decide for the proposed property tax hike in the coming April 9 election. Owner-occupied homes in Orleans are currently at a median value of $183,700, and when the tax proposal gets a thumb up, an extra $138 per year will be added to the figure, according to city officials.
"If we want to be safe in the city of New Orleans, we have to invest in our police and fire departments," announces Mayor Mitch Landrieu at a press conference for the announcement of the tax proposal.
If it pushes through, the said property tax proposal will carry a "sunset clause" of 12 years, which means that the rate will take effect until the end of 2028.
According to Landrieu, the $17.7 million generated from the proposed 5 mills will be utilized to fund the recruitment, hiring, and training of officers as well as provide for their equipment. In the recently passed budget for 2016, it enclosed an allotment for hiring 150 new officers, however, the city would "need every penny" that will come from the new property tax in order to follow through the hiring of officers for the following years, says Deputy Mayor Andy Kopplin. There are currently 1,165 officers in the force, and the department had just closed a year where it gained more officers than lost. Now, city officials are hoping to achieve their goal of 1,600 officers by 2020.
Meanwhile, officials are proposing 2.5 mills for the city's fire department and are expected to generate $8.9 million for the city coffers. The extra cash would be used to pay off a $75-million settlement with the Firefighters Union over back pay and pension fund obligations, says Landrieu.
