FAQs • Shreveport, LA • CivicEngage

How much sewer work is estimated in order to resolve current sanitary sewer overflow issues?: The bond has set aside its largest share, $71.5 million, to put a significant dent in the estimate $200 million required to restore the entire sewerage system. We have to start somewhere and a failure to do anything is not an option and the Department of Justice and EPA are going to require the repairs one way or another. This way, the city is taking proactive steps to solving its own problems before being forced to by the federal government.

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2011 Bond

1. What is a bond election and what is the April 2 vote about?: A bond election is when the city leverages, in this case already levied property taxes millages (what you pay) to receive funds for larger capital projects, such as roads, bridges, sewerage, etc., that are too expensive to pay through the annual operating budget.

On April 2, voters will be asked to review three separate propositions to secure / solidify, repair / replace or renovate portions of the city’s problematic infrastructure. The three proposals total $175 million, but because the current debt services level of the city is the lowest since 1992, all can be done with no new or additional tax.

When you enter your polling station booth, you will see the following three separate propositions and will vote for or against each one:

Proposition One: Water and Sewerage Projects - $92.7 million
Proposition Two: Public Buildings, Parks and City Systems - $38 million
- Police Department Projects - $5.4 million
- Fire Department Projects - $5.4 million
- Parks and Recreation Projects - $26.2 million
- Finance Department Project - $1 million
Proposition Three: Streets and Drainage Projects - 44.3 million

3. How were these projects selected and who selected them?: A citizens bond issue study committee was created in early 2010. This group of 16 citizens (two appointed by each council member, with two more by the mayor) worked diligently, pouring over financial records, asking city department heads hard questions, touring facilities, holding public meetings for other citizen input, and after almost six months selected these projects as the most critical for the city to address at this time. They then submitted their final list to the City Council.

4. Will this bond issue raise taxes?: No. These bonds will be paid by existing property tax millage. There is no new or increased tax.

5. Doesn’t the city already have too much debt?: The city has been diligently paying down its debt over the past several years. Currently, the debt is the lowest it has been since 1992.

6. Does the city have enough money to pay for this debt?: Yes. The 26.56 mills (lowest since 1990) designated for the Debt Service Fund can only be used to pay on general obligation bonds. Additionally, the Citizen’s Bond Issue Study Committee purposely left an additional $113 million in residual bonding capacity that could be bonded in the event of a city-wide emergency in the future. This amount could also be added without an increase in taxes.

7. If the city has money to pay for this debt, why can’t that money be spent on some of these projects?: The annual property tax (estimated at $37 million) used to leverage against any current or future bond amount may be enough to do a few projects a year, but is not enough for major overhauls to complete systems at one time, which is now required.

The situation is similar to if you were to buy a house and leverage what your income is, and will be against the total amount. It would not make sense to build your home one year at a time with only the funds you saved that year, would it? So, you took out a loan, leveraged with your future earnings and bought a completed house. This works the same way.

8. Why can’t the city just use the general fund to pay for these projects?: The general fund is used primarily for year-to-year operations costs and is heavily dependent and sales taxes already committed to various programs, salaries, materials, supplies, maintenance, services and equipment. Funding capital projects through the general fund would require either a new revenue source or a reduction of services.

9. Will this bond issue help the general fund?: It could, by lowering maintenance and repair costs. It costs less to maintain new or upgraded facilities.

10. Has the city ever issued general obligation bonds for sanitary sewer projects?: Yes. Shreveport voters approved a bond issue for sewer projects in 1968 and 1978.

11. How much sewer work is estimated in order to resolve current sanitary sewer overflow issues?: The bond has set aside its largest share, $71.5 million, to put a significant dent in the estimate $200 million required to restore the entire sewerage system. We have to start somewhere and a failure to do anything is not an option and the Department of Justice and EPA are going to require the repairs one way or another. This way, the city is taking proactive steps to solving its own problems before being forced to by the federal government.

12. If proposition 1 fails, what percentage increase in water / sewer rates would likely be required to resolve the current SSO issues?: If the city cannot issue general obligation bonds then revenue bonds may be needed. Those revenue bonds would need to be backed or leveraged by a revenue source. That revenue source would likely be a substantial 29% increase in water-sewer rates.

13. Will this work benefit the local economy?: Yes. Many of these contracts will be awarded to local contractors, engineers, and suppliers. These projects will have a positive impact on our local economy.

14. How long will it take for these projects to be completed?: Some of the larger projects could take several years to complete, while others will start and finish next year. Many projects require engineering and design work to be completed prior to construction. The total of $175 million in bonds likely will be issued in increments spanning 3-4 years as projects are ready to proceed.

15. Why are some projects listed as "citywide’" or "neighborhood," but without a specific area designation?: Some of the projects listed are location specific while others are not; leaving flexibility in the funds for use in other neighborhoods if more immediate needs present - specific to the legal description, e.g. sewer rehab. The city maintains a prioritized list of projects based on input from City Council members, maintenance costs and current conditions of specific projects.

16. Why do we have to pay $8 million to comply with Americans with Disabilities Act (ADA) projects?: The city has entered into a legal agreement with the U.S. Department of Justice that it would finish all necessary ADA violation projects in an agreed upon time frame. Failure to do so will likely subject the city to fines. The projects include improvements to major facilities and will allow all residents and visitors to Shreveport to better enjoy all the features of the city.

17. When is the vote?: Early voting has already started and will continue through March 26. Just go to the Caddo Register of Voters Office at 525 Marshall, Suite 103, between 8:30 a.m. and 6 p.m. For everyone else, the election is Saturday, April 2, 2011 between 6 a.m. and 8 p.m.

18. Where do I vote?: You should be able to vote at your normal polling place. If you need assistance finding your polling place, please contact the Caddo Registrar of Voters at 318-226-6891.