Mayor Nic Hunter and Councilman John Ieyoub, District D, hosted the final of seven LC Rebound community meetings on Thursday, November 10 at Drew Park.

LC Rebound is the tax-neutral bond proposal that will appear on the ballots of Lake Charles residents on Saturday, Nov. 18. If passed by voters, the city’s “antiquated” tax structure — which is made up of four separate sales taxes  — will be consolidated and modernized into two sales taxes, Hunter said.

The city’s currency tax structure is a “cumbersome system” that makes it difficult to borrow money, he said. LC Rebound would create a tax structure that is more streamlined, making it easier to bond out projects.

“Everyone of those four have their own termination dates, and every one of those four have their own restrictions and limitations, so it makes it very difficult to move money from one bucket to another. It also makes it very difficult to accomplish very large infrastructure projects.”

The varying renewal dates for the current sales taxes are a deterrent for lenders.

“If we try to go borrow money, and ask to advertise that over 15 or 20 years, a lender is not going to do that, because they are going to see that you have three out of four of your repayment sources expire over the next seven years.”

The city’s sales tax is 2.5 percent. On the ballot, voters will vote on one two-percent continuous sales tax that will be used to “keep the lights on” and pay city employees and one one-half percent 25-year sales tax, Hunter said.

Locals have voiced concerns about the perpetual two-percent sales tax, stating  the lack of a renewal date is concerning. Hunter assured that a future city administration would have the power to propose a different tax structure.

“This is not something that has to be set in stone forever, just like we’re going out for a vote to change it today, this is something that can be changed in the future.”

He also noted there are several municipalities in Louisiana that have instituted perpetual sales tax structures, including Lafayette, Alexandreia, Iowa and Bossier City.

“This is nothing novel or new. … Some of these cities have the ability to go into a lot more healthy debt than we do because of their revenue structure.”

Ieyoub said LC Rebound would be “a bold step for Lake Charles.”

“To me, this gets us over the hump of status quo.”

He said the passage of LC Rebound would allow major infrastructure projects to break ground quickly, like the completion of the Enterprise Blvd. extension.

“We always have our budgets for capital improvement and infrastructure, and we try to use that as best as we can. But, when things go a little bit higher than that, we need stuff like this to push us over the edge and make us a proactive city, and try to do things a lot better and a lot faster.”                                                    

There are $190 million in infrastructure and quality-of-life projects included in LC Rebound; The city will contribute $143 million. Hunter said they will utilize $13 million in existing budgeted funds, $1 million in CDBG funds and bond out $130 million. The city will borrow money in “several tranches” as project designs are completed and ready to bid. This process would take place over a two and a half to 10-year period.

Hunter said that about 80 percent of these projects “hard infrastructure”, accounting for $120 million. This includes sidewalk and street median repairs and smart traffic signals throughout the city.

These projects are protected by a covenant resolution that was unanimously adopted by the city council at its Sept. 6vmeeting. This covenant “puts in additional layers of bureaucracy and protection for these projects,” he said.

District D Projects

A major $25 million infrastructural project affecting District D is the reconstruction of West Sallier and 12th St. This project includes reconstruction from Lake St. to Enterprise Blvd., beautification and drainage upgrades and a designated bike lane. Additionally, it will improve the intersection and West Sallier and Ryan st., addressing railroad safety concerns.

This project, along with the $110 Nelson Rd. extension bridge project that will connect the casino area to West Sallier, will create a new gateway to Downtown and Midcity.

District D will see infrastructure and aesthetic improvements from the Mid-City Ryan Street – $4 million – and Prien Lake Road – $2.25 million – beautification projects. Both projects include replacing concrete with greenspace to improve drainage, decorative pavers at intersections and signage enhancement.

Due to District D’s proximity to the Lake Charles Event Center and Millennium Park, the area will benefit from the Lakefront Amphitheater and planned park upgrades. The amphitheater will be renovated with an expanded stage, enhanced audio/visual capabilities, box seats and improved aesthetics. The City also plans to install a  covered carousel next to the park.

The estimated total project cost is $24 million. The city’s planned contribution is $23.25 million. The Convention and Visitor’s Bureau will provide additional funding.

Lock Park will be transformed into the city’s first all inclusive park for local families. Every piece of playground equipment will be replaced to ensure accessibility for children of all levels and capabilities.

Additionally, “Lock Cottage” will be renovated into a home office for Families for Inclusion, a non-profit under the Children’s Miracle Network umbrella. This building will also allow a space for families with children that need a private moment, Hunter said.