The Capital Area Transit System board of commissioners Tuesday unanimously approved “rolling forward” the agency’s millage rate, a move that—prior to the flood—would have generated roughly an additional $600,000 or so for the bus system in 2017.
However, because of the extensive devastation from the flood, more than 50,000 properties in East Baton Rouge Parish will have to be reassessed at new, lower values, which will lead to lower property tax collections next year. As a result, not only will the 10.6-mill property tax not generate any additional money for CATS next year, but the bus system will likely see its revenues drop.
“Given the number of houses that flooded our revenues are quite likely going to go down,” says CATS Board Chairman Jim Brandt. “We have no idea how big the impact will be but it could be quite significant. We’ll just have to wait and see.”
In 2012, voters approved a 10.6-mill dedicated property tax for CATS, which went generates about $16 million a year for the system. Because 2016 was a reassessment year for the parish, CATS had to approve rolling forward its millage at the current rate, otherwise, the millage would have dropped to 10.2 mills.
“Now it’s doubtful we’ll see that increase if any increase at all,” Brandt says.
Like so many state and local agencies, CATS, too, sustained losses in the flood, so the prospect of belt tightening next year comes at a time when the agency can little afford it. CATS will apply for $11 million in reimbursement from FEMA, Brandt says, to help cover transportation and property costs related to the flood.
The disaster and early recovery efforts have slowed CATS’ search for a new CEO. Interviews scheduled for earlier this month were postponed.
However, two finalists for the position remain and will be interviewed by the board in September. The finalists are CATS interim CEO William Deville, who was previously CEO of the New Orleans Regional Transit Authority, and Jonathan Davis, who recently retired from the Massachusetts Bay Transportation Authority after 20 years.
A third finalist, Albert Eby, executive director of the Cape Fear Public Transportation Authority, withdrew his name from consideration.
—Stephanie Riegel
