Voters in the City of Abbeville have more than a month to gather information on the special election for a half-cent sales tax.
On May 4, voters in Abbeville will go to the polls to decide on a half-cent sales tax, a potential new revenue stream city officials say is necessary to help fund raises for city employees. The city council voted unanimously on March 7 to call the special election.
Councilman Francis Plaisance and Councilman Francis Touchet Jr. met with members of the Kiwanis Club of Abbeville last week to share details of the proposal.
“Anytime you talk about sales tax,” Touchet said, “it’s not a very popular thing. It’s not something that I feel comfortable with.
“For those who know me, I am a very conservative person, but this is something we had to do.”
Touchet said rising costs, including state-mandated retirement payments and insurance for 160 employees that totals more than $2 million, as well as being competitive in keeping employees, makes it imperative for the city to look at a new revenue stream for raises.
“With these rising costs and with us trying to keep employees,” Touchet said, “we were set with three options. One, with the vote of three people on the city council, we could raise the rates for electricity, water and sewer. The people would not have a choice. Two, with the vote of three people, the city council could raise property taxes. By law, we could go to 10 mills. We are at six mills. Anything over 10 mills, we would have to go to the voters, but the council could vote to go up four mills.
“The third option is the sale tax.”
Touchet said that option does not box in who is paying an increase.
“We have an opportunity,” Touchet said, “to where not only are the people who are living in Abbeville paying it, but anyone who comes in. Everyone would be contributing to this type of sales tax.
“It is something that we would all participate in.”
If passed on May 4, the sale tax, which would not go into effect until Oct. 1, would generate an estimated $1.4 million annually. That would cover the $1.1 million it would take to provide raises for city employees. Touchet said excess revenue would be placed in a fund solely dedicated to cover the raises in the future.
“We have to make sure that we have a nest egg,” Touchet said. “We need to make sure that we can sustain this (raises) down the road.”
Proposals call for across-the-board raises for members of the Abbeville Police Department and the Abbeville Fire Department and hourly increases for municipal employees. Much of the focus has been given to raises for police, with starting salary for officers at $1,680 per month, compared to the $2,757 averages among Crowley, Carencro, Scott, Youngsville, Broussard and Rayne. While he said it is important to take care of that issue, Touchet stressed that other city departments could not be overlooked.
“We have to improve what we are paying our city workers to go cut grass in 100 degrees and what we are paying people to collect at city hall,” Touchet said.
Starting salaries for public works and clerical employees range from $8.61 per hour to $9.34 per hour.
“We have to look at what we are doing for our employees and try to keep them,” Touchet said. “If we don’t, we will have a revolving door.”
Touchet said that is something that hurts services.
“All of these employees help improve the services that you are getting day to day,” Touchet said.
Some have voiced concerns that the proposal would increase the city’s sales tax rate to 10.45 percent, placing a burden on local businesses.
“I know some people are going to be for this and some people are not,” Touchet said. “I can tell you that we have no other options. If this is not successful, I can tell you that we are still going to have this problem.”
Where the increase is concerned, Touchet said it amounts to 50 cents more for every $100 spent.
“On $100,” Touchet said, “you are going to spend 50 cents more. My question to you, is this (raise proposal) worth 50 cents more on every $100? Whether you live in the City of Abbeville or you don’t, is it worth it?
Plaisance said he feels the increase would not be devastating, citing the special tax Lowe’s had, which was near this proposed increase.
“You remember when we gave a half million dollar concession to Lowe’s to get them here,” Plaisance said. “That was, I think, a tenth of a penny difference in the tax that would be paid now. I can tell you that Lowe’s paid off that $500,000 ahead of schedule.
“People were paying that there, and they were still buying.”
Touchet said that he understands the differing opinions regarding this sale tax proposal, but outside of an increase to utilities or property taxes, this is the only option at this time.
“We have looked at every line item in our budget that we could,” Touchet said. “This (sales tax proposal) is not a favorite thing. I am going around talking about this, and I am asking people to educate yourself. If anyone wants to look at our books, I will tell you, we have them, and you can come to look at them.
“We are being very transparent.
