The conversation about a quarter-cent sales tax began publicly for city officials in early July. Those talks fell in line with the 30 days’ notice that has to be given for any public hearing discussing the tax. At the City Council’s next regular meeting Aug. 20, members will look at a resolution to consider calling a quarter-cent tax election for Dec. 6.

Lake Charles now collects a quarter-cent less in sales tax than any other area in the parish. Not only would the tax put the city on par in terms of sales tax, it could also be used to address some of the city’s financial needs.

The recent lawsuit the city settled with members of the Lake Charles Police Department over supplemental pay will cost the city $2,129,651.91. The amount will be paid out of the city’s general fund in installments over four fiscal years.

The city’s salary survey is another factor officials have listed as making the tax necessary. With a proposed economic boom on the horizon, the salary survey will be used to determine what adjustments need to be made by the city to its pay plan for career service and non-career positions and to the civil service pay plan for firefighters and police officers. Money from the city’s general fund would be used to make those changes.

Officials have also cited the city’s higher-than-average employer retirement contribution rates as a reason for the tax. The prediction for those rates is that they will continue over the next few years, costing the city an additional $2 million each year. Officials said this amount will also come out of the city’s general fund. Rounding out the city’s list of financial factors are enhancements to roads, drainage, utilities and public safety services.

At the council meeting in July when Mayor Randy Roach began the discussion over the tax, he talked about how the tax is a result of these factors combined.

“At some point you have to ask yourself, ‘Can we continue to do what we need to do for our residents, the citizens of our community and be able to meet the demands that are being placed upon us with economic growth and development given the posture of the revenue structure that we have?” he said.(MGNonline)