News -> INDReporter TUE, DEC 7 10:41AM by Walter Pierce

Sales taxes up; LCG pay raise proposed

The Lafayette City-Parish Council will hold a special meeting Tuesday night — in addition to its regular meeting — to vote on an introductory ordinance that would grant a 2 percent pay raise for Lafayette Consolidated Government employees. The pay hike, proposed by City-Parish President Joey Durel, would be paid for through higher-than-expected sales tax collections.

In a Dec. 6 letter to council members, Durel lays out his rationale for the pay raise:
As you know, my 2010-2011 proposed budget did not include a recommendation for a general increase for LCG employees. During budget hearings (and in my budget message), I suggested that any increase be deferred until we had an opportunity to see actual sales tax collections and other financial information.

Chief Financial Officer Becky Lalumia has updated the proforma and, as we all had hoped, actual revenues exceeded our conservative budget for last fiscal year. For the first month of the current fiscal year, we have also seen a modest increase in sales tax collections over what was projected.

As a result, I ask that you call a special meeting of the council to consider the implementation of a 2% general increase for LCG employees. This decision comes after much deliberation at a time when other communities have had to furlough or lay off employees. We have been most fortunate during tough economic times and know that our employees realize this. We thank them for their understanding during this process and for their hard work over the past year.

According to a Dec. 6 memo from Lalumia to Durel, the 2 percent across-the-board pay raise will cost LCG $2 million. Half that cost will be drawn from the City General Fund; the remainder will come from the Parish General Fund ($100,000), utility funds ($600,000) and an assortment of other, smaller funds that are either grant-funded or self-supporting ($300,000).

Further, Lalumia indicates that LCG ended fiscal year 2009-2010 with a roughly 1 percent growth over the prior year, and the final seven months of FY 09/10 showed 5 percent growth over the same period the year before. Lalumia opines that these revenue increases will allow LCG to estimate 3 percent growth for its budget projection, and that LCG’s year-end balances will be higher than projected by about $3.6 million. Lalumia stresses that her projections are “very preliminary,” and if the projections don’t pan out LCG may be forced to consider “in lieu of tax” increases — a hike in fees that LUS, a city-owned enterprise, pays to LCG because it’s not subject to a sales tax — and/or departmental cuts.

If approved Tuesday by the council, the ordinance will go up for final adoption on Dec. 21.

Click here to read the ordinance and supporting documentation.


Walter Pierce
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Comments (17)add
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written by LCG Employee , December 07, 2010 - 01:02 pm
This is good news for the very hard working, and sorely underpaid, LCG employees. Thank you Mr. Durel and thank you sales tax payers.
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written by ragin_cajun , December 07, 2010 - 03:04 pm
This is a bad idea. This is a very bad time to do something like this.
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written by Clint Reno , December 07, 2010 - 03:42 pm
Government employees getting pay raises (thank you tax paying citizens) while the private sector continues to make cuts to survive.
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written by ragin_cajun , December 07, 2010 - 05:23 pm
"while the private sector continues to make cuts to survive".....here we go...:)
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written by leaving state , December 07, 2010 - 05:28 pm
This is not a good idea. There are a lot of hard working people who will not see a raise and the tax payers are tired of being ridden for the benefit of everyone else. Save! Save! Save and reduce taxes.
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written by The Original Northsidian , December 07, 2010 - 07:49 pm
Taxes up, pay up! Taxes down, tax increases to have pay up again. When will it ******* end?
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written by no name , December 07, 2010 - 10:04 pm
You have got to be kidding me! Even our President has recommended no raises for the Federal Government employees yet our local government want to implement a pay raise.
Give us a BREAK.
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written by Morrow , December 08, 2010 - 05:14 am
Oh, for C's sake, this is NOT the time to be talking about pay raises! What give them a raise before the election? Is this about votes? The state is going into the toilet, and just 'cause Lafayette is holding its own, a few dollars come in and LCG is talking raises? It souinds so fiscally irresponsible, it must be for votes.
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written by Where is the Tea Party? , December 08, 2010 - 08:13 am
Where is the Tea Party?
Do they only protest black people?
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written by LCG Employee 2 , December 08, 2010 - 11:48 am
Insurance premiums went up nearly 60% for LCG families and benefits went down. A 2% pay raise barely makes a dent.
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written by Clint Reno , December 08, 2010 - 01:56 pm
LCG Employee 2, welcome to the real world.
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written by andymhebert , December 08, 2010 - 02:30 pm
“The increase would cost LCG…”
Cost whom?
Do the math:

50% would come from the city general fund
30% from the (city) utilities and communications funds

5% would come from the parish general fund

15% from other smaller funds
For a total of:
80% from CITY OF LAFAYETTE
5r;om the PARISH OF LAFAYETTE

If you pay a City property tax and a Parish property tax for residing in the City of Lafayette you pay a total of 85%.

If you don’t live in the City of Lafayette you pay 5%.

Where is the LCG equal taxation?

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written by BoFred , December 09, 2010 - 09:25 am
NO, NO, NO. There is so much that needs to be done in and around Lafayette and the only thing Lalumia can come up with is a raise? Ready to retire??? How about a one time bonus, if the govt really can't find anything that needs to be fixed.... Oh, and Employee 2, Blue Cross went up $160 a month for our family of four, so that means we will pay $900 a month in insurance alone... What are you paying? Wanna trade?
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written by ragin_cajun , December 09, 2010 - 10:36 am
BoFred--

$900 a month? That's less than I pay for my family of four. Is that a lower rate for a group plan? Or can I walk in off the street and get a policy for that by myself?

I pay almost $1100 per month for health insurance.
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written by Trixie Ledet , December 09, 2010 - 11:54 pm
Welcome to the Real World, Mr. Reno? We are living in the real world and know only too well the harsh realities of the economy that we are living in. So excuse us very much if we act a bit grateful for any kind of relief that might come our way. In our reality, our insurance went up and the benefits went down and everything costs more. We have families to support and bills to pay. And, it frustrates me to no end to look at these comments and its all about the politicians and the what have you got vs. what I might get that you can't have. No Dude, its about real life, living breathing human beings who work in jobs that are geared to make your sorry life better. We're out there digging ditches, fixing potholes,answering alarm calls when your business is burgalized, and answering the phones when your lights are out. We are not Mr. Durel or Ms. Lalumia, we are just hard working people, not politicians looking for votes or whatever. We want to be paid a living wage that feeds our families and keeps them safe. The average LCG employee makes about $15 an hour, so we're going to have a great big 'ole party on our whopping 30 cents an hour or $624 per year, that the 2% will bring us. Don't bother to RSVP, I'll be using my money to pay toward the $1,250 a year increase in insurance premiums. So like I said, I'm grateful for whatever we are offered. And I suspect if your boss offered you 2%, you wouldn't spit on it either. So remember when you are being so callous toward LCG Employee 2, he knows the Real World.
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written by Morrow , December 10, 2010 - 05:27 am
You can walk in off the street and you can call an agent on the phone and you can negotiate what you want for that amount of money. I have a major medical policy with a $3000 deductible, no co pays, I pay outta pocket every dr visit till I make the deduct, then I pay 20%. I have a coupla months on my contract, then it goes up to a little over what you pay and I'll have a higher deduct... so we may be in the same boat.... but hey, we're both free to try to negotiate what we can find...
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written by andymhebert , December 10, 2010 - 09:44 am
FYI-DETAILS

The 3% sales tax increase is only for the “City of Lafayette General Fund Pro Forma” as shown in the supporting documents.

There is no documentation showing what the Parish sales taxes will do or be.

The title of this article should read “City of Lafayette Sales taxes up”.

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