Tax Base of New City Sufficient to Cover All Reasonable Costs

Tax Base of New City Sufficient to Cover All Reasonable Costs

BATON ROUGE – A high-ranking official of a company that administers privatized cities such as the City of Central says a computer model his firm uses indicates the revenues of the proposed City of St. George would be more than sufficient to cover its expenses without the need for additional taxes.  The official, who asked not to be identified, said Central, with a population of 28,000 and revenues of $6.5 million runs a surplus of more than $1 million a year.

He said, “The population of St. George is four times greater than Central, but the tax base is about 10 times greater.  Central is basically a residential community, whereas St. George has a strong commercial and retail base.  St. George will be able to cover all of its expenses and have a very larger surplus left over.  I assume that surplus will be used in part to improve the the roads and streets in St George.  But there is little doubt there will be a tax surplus and certainly no need whatsoever for a tax increase.”

His statement came just as opponents of St. George launched a campaign to convince voters that creation of the City of St. George will raise their taxes.

Meanwhile, pro-St. George incorporation leader Norman Browning said St. George opponents are using fear tactics and targeting elderly voters with false claims that St. George will raise taxes.

He said opponents are trying to persuade elderly voters who signed the St. George petition to withdraw their signatures.

“On its face, it’s so illogical,” Browning said. “The very purpose of St. George is to get out from under the high tax, big government policies of Baton Rouge and allow our citizens to keep our tax dollars in St. George.  This is the  most properous part of the parish with the strongest tax base.  The existing

tax structure is more than sufficient to fund the city of St. George and provide a strong surplus.  Where do you think you are more likely to have a tax increase — Baton Rouge or St. George?  That is obvious.”

If the petition is certified by the Registrar of Voters, the vote on St. George could be on the ballot this fall.

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