The work of the Downtown Development Authority is largely funded by a small ad valorem or property tax of 8.64 mills levied on properties within the area called the Downtown Development District. Every four years, parish tax assessors do what is called a ‘reassessment’ in which they determine whether values have gone up or down. The tax rate is based on that assessment.
Each year in late summer as DDA staff begins preparing the budget for the upcoming year, they contact the tax assessors in Caddo and Bossier Parishes and the City of Shreveport Finance Director to determine the best estimate of what that ad valorem number is expected to be. This number is the basis of the DDA budget.
In 2016 while preparing the budget, the City of Shreveport and the DDA were told that the assessed value of properties within the City had increased. Accordingly, the adjusted DDA millages was decreased from 8.640 to 8.550 mills. Here’s why. Even though the millage went down, the values went up- meaning the same amount of budgetary dollars would have been collected.
Unfortunately, that turned out to be incorrect and very surprising. In November 2016, when the City received the actual tax rolls the assessed values of property within the bounds of the Shreveport Downtown Development District had actually decreased, rather than increased as the City was initially informed in May. The result of this actual decrease in assessed value in tax year 2016 resulted in a loss to the DDA of approximately $14,917.81.
Now that the information on reassessment has been clarified, DDA is requesting that its’ millage be returned to the 8.64 mills that was on the books prior to 2016. This is called a ‘rolling forward’ of millages. Under this rolling forward from the 8.55 to 8.64, the DDA will receive an additional estimated $8,091.08.
In the truest sense of government, this is about as confusing as can be and we’re sorry about that. It is forever confusing to us, too. Following is a whole lot of information that we are required by law to post, and we are happy to do so. This will also be appearing in the The Times. Please read over it and if you have a question, let us know and we will try to answer it. If we cannot, we will try to find someone who can.
In the meantime, THANK YOU for your support of the DDA’s efforts to make downtown the wonderfully cool, unique and special place that we all want and know that it can be.
Legal Info Follows—
Notice is hereby given pursuant to Article 7, Section 23(C) of the Louisiana Constitution and R.S. 47:1705(B) that a public hearing of the City Council of the City of Shreveport, Louisiana will be held at its regular meeting place in Government Chambers in Government Plaza located at 505 Travis Street, Shreveport, LA 71101 on Tuesday, May 23, 2017 at 3:00 p.m. to consider levying additional or increased millage rates without further voter approval or adopting the adjusted millage rates after reassessment and rolling forward to rates not to exceed the prior year’s maximum on all property subject to ad valorem taxation within the bounds of the Shreveport Downtown Development District, as defined by La. R.S. 33:2740.38. The estimated amount of tax revenues to be collected in the next year from the increased millage is $776,747.08, and the estimated amount of increase in taxes attributable to the millage increase is $8,091.08.
DDA’s 2017 Program of Work and Budget (Remember that this budget was completed in early fall of 2016. We now estimate the revenue will be $20,000 less based on information we are getting from the City and Tax Assessor).
Shreveport Downtown Development District Ad Valorem Taxes
Public Comment Notice and PUBLIC HEARING NOTICE
NOTICE IS HEREBY GIVEN that the City of Shreveport, on behalf of the Shreveport Downtown Development Authority, intends to consider renewing existing ad valorem property tax, and to increase (“roll forward”) those ad valorem Property tax rates, not to exceed the maximum authorized rate, at the City Council’s Regular Meeting which will be held on Tuesday, May 23, 2017 at 3:00 p.m. in the Government Chambers in Government Plaza located at 505 Travis Street, Shreveport, Louisiana 71101. This notice is being published pursuant to La. R.S. 42:19.1 A.(1)(a) and shall appear no more than sixty (60) days nor less than thirty (30) days before said public meeting.
NOTICE IS Also HEREBY GIVEN that a public comment period will be conducted by the City Council of the City of Shreveport, Louisiana at the City Council’s Regular Meeting which will be held on Tuesday, May 23, 2017 at 3:00 p.m. in the Government Chambers in Government Plaza located at 505 Travis Street, Shreveport, Louisiana 71101. The purpose of this public comment period is to allow the public to make comments prior to the City Council taking action on ad valorem tax ordinances under consideration for adoption. Pursuant to La. R.S. 42:14(D), the City Council shall allow a public comment period at any point in the meeting prior to action on the ordinances. The following ordinances regarding ad valorem taxation for the Shreveport Downtown Development Authority are required to have a Public Comment Period: Ordinance No. 41 of 2017.
NOTICE IS Also HEREBY GIVEN that a public hearing will be conducted by the City Council of the City of Shreveport, Louisiana, on behalf of the Shreveport Downtown Development Authority, at the City Council’s Regular Meeting which will be held on Tuesday, May 23, 2017 at 3:00 p.m. in the Government Chambers in Government Plaza located at 505 Travis Street, Shreveport, Louisiana 71101. The purpose of this public Hearing is to allow the public to make comments prior to the City Council taking action on an ad valorem tax ordinance, whereby the Shreveport Downtown Development Authority proposes to “roll forward” the ad valorem tax rates not to exceed the maximum authorized rate. Pursuant to La. R.S. 42:14(D), the City Council shall conduct a public hearing at any point in the meeting prior to action on Ordinance No. 45 of 2017.
Persons interested in providing written comments, in advance of the meeting, regarding the proposed ad valorem tax legislation for Shreveport Downtown Development Authority are encouraged to mail or hand deliver their written comments to: Chairman of the City Council, City Council Office, ATTN: Shreveport Downtown Development Authority – Ad Valorem Taxes, 505 Travis Street, Suite 410, Shreveport, LA 71101. All written comments should be mailed or hand-delivered in a timely manner to the City Council office so as to be available prior to the hearing on Tuesday, May 23, 2017 at 3:00 p.m.
The Shreveport Downtown Development District ad valorem taxation ordinances are as follows:
ORDINANCE NO. 41 OF 2017
An ordinance levying a tax of Eight and Fifty-Five One Hundredths (8 and 55/100ths) mills per dollar on all property subject to ad valorem taxation within the bounds of the Downtown Development District, of the City of Shreveport, Louisiana, as defined by La. R.S. 33:2740.38, for the year 2017, in the amounts and for the purposes described herein, and to otherwise provide with respect thereto.
WHEREAS, ad valorem taxes must be levied each year by the City Council in order for the Tax Assessors of Caddo and Bossier Parish to assess taxable property and for the Director of Finance, who is designated as the Ex Officio Tax Collector under Section 10.02(k) of the City Charter to collect the taxes; and
WHEREAS, pursuant to La. R.S. 33:2740.38, the State legislature found and declared that it was necessary for the public health, safety, and welfare of the city of Shreveport, Louisiana that the property value deterioration, in the principal area or areas of the city of Shreveport zoned for business and known generally as the central business district be halted, since the said central business district is the center of commercial, civic, and cultural activities of the metropolitan area; and
WHEREAS, pursuant to La. R.S. 33:2740.38 B.(1)(a), a special taxing district was created by Act No. 573 of the 1975 Regular Session and any amendment thereto within the city of Shreveport was and shall continue to be recognized as a Downtown Development District and is composed of that area of the city of Shreveport described therein; and
WHEREAS, pursuant to La. R.S. 33:2740.38 B.(2), the said special taxing district is known as and shall continue to be hereby designated as the Shreveport Downtown Development District; and
WHEREAS, pursuant to La. R.S. 33:2740.38 C.(1), the Shreveport Downtown Development District, hereinafter referred to sometimes as the “district,” shall be governed by the Shreveport Downtown Development Authority, hereinafter referred to sometimes as the “authority,” originally established by Ordinance No. 47 of 1975 of the city council of the city of Shreveport; and
WHEREAS, pursuant to La. R.S. 33:2740.38 F.(1), in order to provide funds for the implementation of the proposals and programs of the Shreveport Downtown Development District, the Shreveport Downtown Development Authority shall submit to the city council, with its proposals and programs, recommendations and proposals for the levy of special ad valorem taxes not to exceed at any given time an aggregate of ten (10) mills on the dollar of assessed valuation on all property situated within the district; and
WHEREAS, pursuant to La. R.S. 33:2740.38 F.(1), the proceeds of any such ad valorem tax shall be used solely and exclusively for the purposes and benefit of the district, and said proceeds may be expended or made available by the authority for administration costs, operational expenses, acquiring property by purchase, donation, exchange, or otherwise but not by expropriation, the preservation, revitalization, or beautification of public and private property within the district, project expenses or the retirement of bonds or other evidence of indebtedness. However, the proceeds of any such ad valorem tax shall not be used for any motel or lodging industry which would compete with any such existing private enterprise in the district; and
WHEREAS, pursuant to La. R.S. 33:2740.38 F.(3), the city council shall review and consider any plans submitted within thirty (30) days following the submission to it by the authority, and shall adopt or reject such plan by majority vote of its members. If the city council adopts such a plan, it shall become final and conclusive and the ad valorem tax shall be levied as provided herein. If the city council rejects the plan, it shall notify the authority of this action, and the authority may again, and from time to time, prepare and submit to the city council for its review, consideration, adoption, or rejection in accordance with the procedures provided herein, a plan setting forth the matters hereinabove prescribed. Any rejection by the council should consist of specific written analyses and suggestions for improvement of the plan. Further, it shall be required that technical assistance shall be provided by the city council if required by the authority in order that the plans may be improved; and
WHEREAS, pursuant to La. R.S. 33:2740.38 F.(4), each plan submitted or resubmitted shall set forth the projects recommended, the estimated cost thereof, recommendations for funding, and such other information as required by this Section or by the authority or by the city council; and
WHEREAS, the assessed value of properties within the District increased. Accordingly, the adjusted millages decreased from 8.64 to 8.55 mills. This change is mandatory and is fixed; and
WHEREAS, pursuant to City Charter Section 10.02 (K) the director of finance shall have charge of the financial affairs of the City and, to that end, he shall, with the approval of the chief administrative officer collect all taxes and licenses the collection of which is not assigned by law or ordinances to some other officer or agency. In the collection of taxes the director of finance shall be the ex officio tax collector of the City of Shreveport and shall have all the powers and duties conferred by law on tax collectors of cities.
NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Shreveport, Louisiana, in due, legal and regular session convened, that:
tax for Shreveport Downtown Development Authority. An ad valorem tax of Eight and Fifty-Five One Hundredths (8 and 55/100ths) mills per dollar of assessed valuation be and the same is hereby levied on all property subject to ad valorem taxation within the bounds of the Shreveport Downtown Development District, of the City of Shreveport, Louisiana, as provided in La. R.S. 33:2740.38, for the year 2017; to be expended by the Shreveport Downtown Development Authority for the purpose of providing funds for administration, operational expenses, capital improvements, project expenses or the retirement of bonds or other evidences of indebtedness, all in accordance with the results of a special election held November 5, 2002, whereby the authorization for taxation was extended to twenty-five (25) years in lieu of five (5) years, that is subject to end in the year 2027.
BE IT FURTHER ORDAINED that this ordinance shall be full authority to the Tax Assessor of the Parish of Caddo, Louisiana and the Tax Assessor of the Parish of Bossier, Louisiana, to extend the taxes herein levied on the assessment rolls of the City of Shreveport, Louisiana for the year 2017.
BE IT FURTHER ORDAINED the tax collector of the City of Shreveport, Louisiana shall collect and remit the same to said taxing authority in accordance with law.
BE IT FURTHER ORDAINED the Director of Finance, Ex Officio Tax Collector of the City of Shreveport, is hereby empowered, authorized, and directed to cause said taxes, as herein above set forth, to be spread upon the tax roll of the City of Shreveport, Louisiana for the year 2017, to collect said ad valorem taxes for and on behalf of said City, according to law, and to place the same to the credit of the funds described herein above as authorized by law.
BE IT FURTHER ORDAINED the taxes herein levied shall become a permanent lien and privilege on all property subject to taxation as herein set forth, and the collection thereof shall be enforceable in the manner provided by law.
BE IT FURTHER ORDAINED that the Clerk of Council shall provide a certified copy of this ordinance to the Tax Assessor of Caddo Parish and the Tax Assessor of Bossier Parish immediately after its final passage and adoption by the City Council and approval by the Mayor.
BE IT FURTHER ORDAINED that if any provision or item of this Ordinance or the application thereof is held invalid, such invalidity shall not affect other provisions, items or applications of this Ordinance which can be given affect without the invalid provisions, items or applications and to this end the provisions of this Ordinance are hereby declared severable.
BE IT FURTHER ORDAINED that all Ordinances or parts thereof in conflict herewith are hereby repealed.
ORDINANCE NO. 45 OF 2017
An ordinance providing for an increase in the millage rates whereby the Shreveport Downtown Development Authority shall roll forward to millage rates not exceeding the maximum authorized rate and levying various taxes totaling Eight and Sixty-Four One Hundredths (8 and 64/100ths) mills per dollar on all property subject to ad valorem taxation within the bounds of the Downtown Development District, of the City of Shreveport, Louisiana, as defined by La. R.S. 33:2740.38, for the year 2017, in the amounts and for the purposes described herein, and to otherwise provide with respect thereto.
WHEREAS, ad valorem taxes must be levied each year by the City Council in order for the Tax Assessors of Caddo and Bossier Parish to assess taxable property and for the Director of Finance, who is designated as the Ex Officio Tax Collector under Section 10.02(k) of the City Charter to collect the taxes; and
WHEREAS, pursuant to La. R.S. 33:2740.38, the State legislature found and declared that it was necessary for the public health, safety, and welfare of the city of Shreveport, Louisiana that the property value deterioration, in the principal area or areas of the city of Shreveport zoned for business and known generally as the central business district be halted, since the said central business district is the center of commercial, civic, and cultural activities of the metropolitan area; and
WHEREAS, pursuant to La. R.S. 33:2740.38 B.(1)(a), a special taxing district was created by Act No. 573 of the 1975 Regular Session and any amendment thereto within the city of Shreveport was and shall continue to be recognized as a Downtown Development District and is composed of that area of the city of Shreveport described therein; and
WHEREAS, pursuant to La. R.S. 33:2740.38 B.(2), the said special taxing district is known as and shall continue to be hereby designated as the Shreveport Downtown Development District; and
WHEREAS, pursuant to La. R.S. 33:2740.38 C.(1), the Shreveport Downtown Development District, hereinafter referred to sometimes as the “district,” shall be governed by the Shreveport Downtown Development Authority, hereinafter referred to sometimes as the “authority,” originally established by Ordinance No. 47 of 1975 of the city council of the city of Shreveport; and
WHEREAS, pursuant to La. R.S. 33:2740.38 F.(1), in order to provide funds for the implementation of the proposals and programs of the Shreveport Downtown Development District, the Shreveport Downtown Development Authority shall submit to the city council, with its proposals and programs, recommendations and proposals for the levy of special ad valorem taxes not to exceed at any given time an aggregate of ten (10) mills on the dollar of assessed valuation on all property situated within the district; and
WHEREAS, pursuant to La. R.S. 33:2740.38 F.(1), the proceeds of any such ad valorem tax shall be used solely and exclusively for the purposes and benefit of the district, and said proceeds may be expended or made available by the authority for administration costs, operational expenses, acquiring property by purchase, donation, exchange, or otherwise but not by expropriation, the preservation, revitalization, or beautification of public and private property within the district, project expenses or the retirement of bonds or other evidence of indebtedness. However, the proceeds of any such ad valorem tax shall not be used for any motel or lodging industry which would compete with any such existing private enterprise in the district; and
WHEREAS, pursuant to La. R.S. 33:2740.38 F.(3), the city council shall review and consider any plans submitted within thirty (30) days following the submission to it by the authority, and shall adopt or reject such plan by majority vote of its members. If the city council adopts such a plan, (Resolution No. 197 of 2016), it shall become final and conclusive and the ad valorem tax shall be levied as provided herein. If the city council rejects the plan, it shall notify the authority of this action, and the authority may again, and from time to time, prepare and submit to the city council for its review, consideration, adoption, or rejection in accordance with the procedures provided herein, a plan setting forth the matters hereinabove prescribed. Any rejection by the council should consist of specific written analyses and suggestions for improvement of the plan. Further, it shall be required that technical assistance shall be provided by the city council if required by the authority in order that the plans may be improved; and
WHEREAS, pursuant to La. R.S. 33:2740.38 F.(4), each plan submitted or resubmitted shall set forth the projects recommended, the estimated cost thereof, recommendations for funding, and such other information as required by this Section or by the authority or by the city council (Resolution No. 197 of 2016); and
WHEREAS, said 2017 plan, required by La. R.S. 33:2740.38, was approved by the City Council on November 22, 2016 in Resolution No. 197 of 2016.
WHEREAS, in May of 2016, the City received information from the Tax Assessor stating the assessed value of properties within the City had increased. Accordingly, the adjusted millages decreased from 8.640 to 8.550 mills as recorded in Ordinance No. 89 of 2016; and
WHEREAS, later in November 2016, when the City received the actual tax rolls the assessed values of property, within the bounds of the Shreveport Downtown Development District, had actually decreased, rather than increased as the City was initially informed in May. The result of this actual decrease in assessed value in tax year 2016 resulted in a loss of approximately $14,917.81 for the Shreveport Downtown Development Authority when compared to 2015. Therefore, had the City and the Shreveport Downtown Development Authority received the correct final assessed values in May of 2016, the assessed millages adopted by Ordinance No. 89 of 2016 would have remained at 8.640 mills.
WHEREAS, in order to prevent this loss in revenue in 2017 the Shreveport Downtown Development Authority should invoke another section of the State Constitution to restore/increase the millage rates. (i.e. “roll forward”) State law allows the Shreveport Downtown Development Authority to roll forward millage rates back up to the maximum authorized rate which is 8.640 mills. This “roll forward” can be accomplished with the adoption of this Ordinance No. 45 of 2017 (also referred to as companion ordinance to Ordinance No. 41 of 2017.)
WHEREAS, Article VII, Section 23 (C) of the Louisiana Constitution and La. R.S. 47:1705 authorize the City Council to increase millage rates, without further voter approval. This process is referred to as “rolling forward.” A “roll forward” is only allowed to occur when an increase in property value at reassessment adjusts millage rates downward, and the Shreveport Downtown Development Authority wants to roll back up to the prior year’s maximum authorized millage rate; and
WHEREAS, Article VII, Section 23 (C) of the Louisiana Constitution and La. R.S. 47:1705 authorize the City Council to increase said millage rates in excess of said adjusted millage rates after a public hearing, conducted at a public meeting held in accordance with the Open Meetings Law, by a two-thirds (⅔) vote of the total membership of the City Council; and
WHEREAS, in addition to any other requirements of the Open Meetings Law, public notice of the time, place, and subject matter of such hearing shall be published on two (2) separate days no less than thirty (30) days before the public hearing. Such public notice shall be published in the official journal of the taxing authority, and another newspaper with a larger circulation within the taxing authority than the official journal of the taxing authority, if there is one; and
WHEREAS, said public hearing was conducted at a public meeting on May 23, 2017; and
WHEREAS, pursuant to City Charter Section 10.02 (K) the director of finance shall have charge of the financial affairs of the City and, to that end, he shall, with the approval of the chief administrative officer collect all taxes and licenses the collection of which is not assigned by law or ordinances to some other officer or agency. In the collection of taxes the director of finance shall be the ex officio tax collector of the City of Shreveport and shall have all the powers and duties conferred by law on tax collectors of cities. The Director of Finance of the City of Shreveport, Louisiana is hereby directed to forward same to the Shreveport Downtown Development Authority (DDA) for the purpose of making improvements to downtown in accordance with the DDA annual program of work.
NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Shreveport, Louisiana, in due, legal and regular session convened, that:
tax for Shreveport Downtown Development Authority. The adjusted millage rate for the Shreveport Downtown Development Authority tax, designated by Ordinance No. 41 of 2017 is hereby increased from 8.550 mills to 8.640 mills. An ad valorem tax of Eight and Sixty-Four One Hundredths (8 and 64/100ths) mills per dollar of assessed valuation be and the same is hereby levied on all property subject to ad valorem taxation within the bounds of the Shreveport Downtown Development District, of the City of Shreveport, Louisiana, as provided in La. R.S. 33:2740.38, for the year 2017; to be expended by the Shreveport Downtown Development Authority for the purpose of providing funds for administration, operational expenses, capital improvements, project expenses or the retirement of bonds or other evidences of indebtedness, all in accordance with the results of a special election held November 5, 2002, whereby the authorization for taxation was extended to twenty-five (25) years in lieu of five (5) years, that is subject to end in the year 2027.
BE IT FURTHER ORDAINED that this ordinance shall be full authority to the Tax Assessor of the Parish of Caddo, Louisiana and the Tax Assessor of the Parish of Bossier, Louisiana, to extend the taxes herein levied on the assessment rolls of the City of Shreveport, Louisiana for the year 2017.
BE IT FURTHER ORDAINED the tax collector of the City of Shreveport, Louisiana shall collect and remit the same to said taxing authority in accordance with law.
BE IT FURTHER ORDAINED the Director of Finance, Ex Officio Tax Collector of the City of Shreveport, is hereby empowered, authorized, and directed to cause said taxes, as herein above set forth, to be spread upon the tax roll of the City of Shreveport, Louisiana for the year 2017, to collect said ad valorem taxes for and on behalf of said City, according to law, and to place the same to the credit of the funds described herein above as authorized by law. The Director of Finance of the City of Shreveport, Louisiana is hereby directed to forward same to the Shreveport Downtown Development Authority (DDA) for the purpose of making improvements to downtown in accordance with the DDA annual program of work.
BE IT FURTHER ORDAINED the taxes herein levied shall become a permanent lien and privilege on all property subject to taxation as herein set forth, and the collection thereof shall be enforceable in the manner provided by law.
BE IT FURTHER ORDAINED that the Clerk of Council shall provide a certified copy of this ordinance to the Tax Assessor of Caddo Parish and the Tax Assessor of Bossier Parish immediately after its final passage and adoption by the City Council and approval by the Mayor.
BE IT FURTHER ORDAINED that if any provision or item of this Ordinance or the application thereof is held invalid, such invalidity shall not affect other provisions, items or applications of this Ordinance which can be given affect without the invalid provisions, items or applications and to this end the provisions of this Ordinance are hereby declared severable.
BE IT FURTHER ORDAINED that all Ordinances or parts thereof in conflict herewith are hereby repealed.
