Morgan City Council OKs tax exemption resolution

The Morgan City Council became the fourth taxing authority in St. Mary Parish to approve a resolution that parish leaders say will bring more industrial manufacturers and jobs to the parish.

Council members unanimously approved an industrial tax exemption resolution during Tuesday’s council meeting.

St. Mary Parish President David Hanagriff spoke at the meeting. Hanagriff and Parish Economic Development Director Frank Fink have asked each of the taxing authority’s within the parish to pass resolutions that would expedite the approval process for new industrial manufacturers seeking property tax exemptions.

Parish officials say streamlining the industrial tax exemption approval process will provide an economic boost to the parish in terms of investment and jobs created.

The Berwick Council, St. Mary Parish Council and St. Mary Parish School Board have approved such resolutions. The sheriff has agreed to the proposal as well. The Patterson, Franklin and Baldwin council have yet to approve resolutions on the matter.

Morgan City Councilman Tim Hymel, who’s also principal at Berwick Junior High School, said being a school board employee, it’s difficult to consider forfeiting property tax collections. But St. Mary Parish is already “losing so many people because we don’t have jobs,” Hymel said.

“I don’t think it hurts us as much as what some people think it does,” Hymel said. “It’s just a matter of trying to get jobs in our parish. And I hope this is an effective way to do it.”

Under the resolution, the parish president would have the authority to approve an industrial tax exemption for a new manufacturer to the parish. However, the parish’s economic development department must first study the projected economic impact a potential business would have on St. Mary Parish.

New manufacturers may get up to a 100 percent property tax exemption for up to five years, and a renewal of up to 80 percent for another three years, according to the resolution.

The impact must be a net positive to the parish for Hanagriff to grant approval of the exemption. The parish president would also have to discuss the results of that study with a designee for each taxing authority prior to approval, Hanagriff said.

At any time, the taxing authority could pass another resolution that would nullify the tax exemption resolution should an entity decide that the original resolution wasn’t satisfactory, Hanagriff said.

Also at Tuesday’s meeting, the City Council adopted a resolution to give preliminary approval to issue up to $1.65 million in excess revenue notes and incur debt for the purpose of acquiring and installing utility meters and related software equipment to implement an electronic meter reading program throughout Morgan City.

The notes would be issued at an interest rate of no more than 4.5 percent for up to 20 years. About $300,000 in city capital funds over a two-year period will contribute to the automated metering project. The H&B Young Foundation will provide another $200,000 toward the project. City leaders plan to spend about $150,000 per year on the project.

Having the automatic meter reading system in place would save the city on meter-reading costs in the long term, according to officials. The city had initially planned to just start with Lakeside Subdivision, but the estimated cost to implement the system throughout the city came back at an annual fee equal to the city’s cost to manually read meters, Mayor Frank “Boo” Grizzaffi said.

Officials expect the matter to go before the state bond commission for approval in June.

In addition to the resolution, the council introduced an ordinance Tuesday, as required by law, to authorize the city to issue the bonds.

In other business, the council

—Adopted a resolution authorizing submission of a grant application through the Louisiana Department of Transportation and Development Safe Routes to Public Places Program. The proposed $300,000 grant would help fund construction of a biking and walking trail near the Young Memorial college campus. Officials have plans to eventually build a trail around the entire city. South Central Planning & Development Commission is handling the grant application.

—Approved the finance committee’s recommendations to authorize the purchase of advanced metering infrastructure and software for automatic reading of utilities at a cost of $109,792 annually for 20 years from the utility fund, reinstate the 2 percent longevity raise for city employees effective July 1 at a cost of $86,090 for the remainder of 2018, allocate $2,414 per month from the general fund to lease six vehicles for the police department, and allocate $17,500 from the pollution abatement fund to purchase a sewer inspection camera.

—Approved organizers to hold the Seventh Annual Bayou BBQ Bash July 13-14 under the U.S. 90 bridge in downtown Morgan City. Third Street and Arkansas Street will be closed in that area from 4-10 p.m. July 13 and 7 a.m.-6 p.m.

—Approved the American Legion Riders to hold their 16th Annual Freedom Ride on May 27 in conjunction with Memorial Day weekend. The ride will begin at the Fallen Warriors Memorial by Morgan City Municipal Auditorium at 8:30 a.m. All vehicles are welcome to participate in the ride.

—Approved a resolution declaring April Fair Housing Month.

—Introduced an ordinance to adopt millage rates for the 2018 tax year.

—Approved liquor and beer permits for Comfort Inn & Suites.