The Orange City Council is considering a budget that includes property taxes of 70 cents per $100 valuation and no increase in the water and sewer rates. Employees are set to get a 2.75 percent cost-of-living pay raise.
City Manager Dr. Shawn Oubre, along with department heads and some department managers, went over the proposed budget Friday morning with the City Council.
Oubre suggests using the $375,000 the city is getting from a lawsuit against British Petroleum to buy a new $500,000 pumper for the fire department. The 2015 budget set aside $125,000 toward the purchase. The lawsuit covers a loss of sales tax and income the city sustained because of the 2010 BP oil spill in the Gulf of Mexico. It is not connected with a proposed grant from oil spill fines to be spent on a countywide sewer system. The new pumper will replace one that is 22 years old and has needed on-going repairs. Oubre said the BP money provides a chance to buy the pumper without paying out a loan or bond.
Another major expenditure will be $250,000 from the Economic Development fund to build restrooms and dressing rooms at the Riverfront Pavilion. Economic Development Director Jay Trahan said the council had previously agreed to add-on features to the riverfront development each year. The economic development money comes from a special sales tax and not property taxes.
The fire department is also asking for $57,500 to replace a 20-year-old storage building at the Allie Payne Road station, plus add a fitness room to the station. The other two fire stations have fitness rooms for the firefighters. The 2015 budget set aside $42,500 toward that project.
The street and drainage department wants to replace 200 feet of storm drain on Clark Circle and a major drain pipe on Holcomb Road. In addition, the department wants almost $285,000 to rebuild and resurface Meeks Drive, Dawnwood and Second Street.
Oubre said the city lost a total of almost $18.5 million in assessed value on properties. More than $10 million of that came from a loss on assets at the former Signal International shipyard. The current tax rate is 68 cents per $100 valuation. To raise the same amount of income on properties the city would need to charge 71.3 cents per $100 valuation. That is the effective tax rate. However, the budget is based on a tax rate of 70 cents per $100, less than the effective rate. Oubre said whether people will pay more or less in taxes will depend on the assessed value of their properties. Senior citizens and the disabled who have filed and received exemptions have their property taxes frozen. They do not pay more unless they make additions to their properties.
The council must hold a public hearing on the budget and vote on it twice before it becomes official. The 2015-16 budget year will start Oct. 1.
-Margaret Toal, KOGT-
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