A Lake Charles Harbor and Terminal District committee on Tuesday recommended reducing the millage rate from 2.60 to 2.53 mills to leave annual tax revenue at the previous year’s level of $2.6 million. The Administration, Personnel and Audit Committee adopted the new rate Tuesday, and it will go before the full board Monday, July 23. (American Press)
Port committee recommends reducing millage rate
Last Modified: Thursday, July 19, 2012 12:31 PM
By Lance Traweek / American Press
A Lake Charles Harbor and Terminal District committee on Tuesday recommended reducing the millage rate from 2.60 to 2.53 mills to leave annual tax revenue at the previous year’s level of $2.6 million.
The Administration, Personnel and Audit Committee adopted the new rate Tuesday, and it will go before the full board Monday, July 23.
“This is being done in order to not pass on the additional burden to the taxpayer of the district,” said Richert Self, director of administration and finance at the Port of Lake Charles.
The ad valorem tax revenue received by the district has averaged $2.6 million over the last two years. The port recently received notice from the Calcasieu Parish tax assessor that revalued taxable property in the district increased to $1,087,456,267 for 2012 from the 2011 value of $1,048,731,177.
At the current millage rate of 2.60 the 2012 property revaluation would yield about $100,000 in additional tax revenue beginning in 2013. This action provides nominal reduction in taxes for the public without decreasing tax revenues from prior years for the port.
The committee also reviewed the district’s financial forecast for the second quarter of 2012.
“We anticipate really good results July through December,” Self said after the meeting. “We anticipate ending the year relatively as budgeted within the revenues.”
Self said two things have helped the port achieve a lot of its budget results this year — petroleum coke exports and the shipments of frac sand.
“I would say if there was one highlight it would relate to the handling of frac sand through the port,” Self said. “They are not only moving a lot of tons, but they are leasing a lot of shed space here at the port.”
Self also said he anticipates a lot of petroleum coke movements July through December.
“The port had almost $49.5 million in cash and investments right now, and we anticipate generating more than $7.1 million cash flow July through December,” Self said.
“However, we’re projecting spending $41.6 million toward capital projects. All of the cash and investments we have, we’re really going to be reinvesting in capital projects. We anticipate about $24.1 million in investments.”
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