Mayor Sharon Weston Broome’s administration went on the offensive today for the first time against the St. George incorporation effort, releasing data that suggests St. George organizers are off by nearly $14 million in the amount of sales tax revenue they estimate their city will collect in its first year as an independent municipality.
St. George organizers have said they believe their new city would collect an estimated $53.4 million in sales tax revenues in their first year, according to a budget released in March and prepared by the Metairie CPA firm Carr, Riggs & Ingram. Those revenue estimates appear to be based on a percentage of the parish’s overall sales tax collection, according to the Broome administration.
By comparison, the administration’s analysis lists a spreadsheet of all 6,500 businesses that exist on paper in the proposed St. George city and discounts those that are inactive or do not pay sales taxes, leaving just slightly more than 2,100. An additional 1,540 or so businesses in the proposed city pay occupational license fees only, which would also be a source of revenue, though a relatively small one.
Organizers of the St. George effort could not be reached for comment prior to deadline.
Broome says her office released the data, “so the people of the parish will be able to make an informed decision.” She goes on to say, “there are more advantages to being a part of Baton Rouge. At the end of the day, our hope is that the people will fight to stay with the city.”
The administration’s move ends weeks of speculation about if and when the city was going to fight back against the St. George movement, which has been vocal in its criticism of the mayor and the city’s performance on everything from schools to the recent structural failure at the downtown library construction site.
In late February, St. George organizers launched their petition drive to get an incorporation measure on this fall’s ballot. They need just slightly more than 14,000 signatures. Organizers have not said how many they have to date.
In March, they released a $58 million budget that projected nearly $53.4 million in sales tax revenues and $34 million in expenses, leaving the city with a projected surplus of more than $20 million.
