Shelly's Homesites - Master Action Plan.

Shelly’s Homesites 2025 Program - Master Action Plan Draft/Layout

Vision & Mission Statement

• Vision: A thriving, sustainable, and harmonious neighborhood.
• Mission: Empower citizens to actively maintain and improve the neighborhood's standards through community-driven initiatives.

Goals & Objectives

Sales tax revenue is a crucial funding source for public services, including education, in Denham Springs, Louisiana. Analyzing recent financial reports and census data reveals several tax collection issues that impact educational funding:

Sales Tax Revenue Fluctuations:

Sales tax revenues in Denham Springs have experienced significant changes in recent years. For example, the fiscal year ending June 30, 2022, saw an increase of $521,013 (12%) in sales tax collections compared to the previous year. This surge was largely due to the opening of new retail establishments, including a Home Depot store and various restaurants. ( https://lla.la.gov/publicreports.nsf/0/86256ea9004c005986256f8f0068c5bd/%24file/0000020f.pdf )

Conversely, the fiscal year ending June 30, 2023, reported a decrease in sales tax revenue, with collections falling short of projections. This shortfall was attributed to conservative initial estimates and economic challenges affecting consumer spending. ( https://app.lla.state.la.us/PublicReports.nsf/0/4993B04F0B3B6A2486258ABB007D95C1/%24FILE/00003C0C.pdf )

Allocation of Sales Tax for Educational Purposes:

The Livingston Parish Public Schools (LPPS) system relies heavily on sales tax revenue for funding. A parish-wide 1% sales tax, along with 20% of a half-percent sales tax, contributes to maintaining school facilities and covering utility expenses. Allocations are based on student populations, with schools like Denham Springs, Walker, and Live Oak receiving substantial portions of these funds. ( https://cdnsm5-ss4.sharpschool.com/UserFiles/Servers/Server_546/File/Business/2025/2025%20Original%20Budget.pdf )

However, disparities exist in funding distribution, leading to calls for a more equitable reallocation to support smaller schools such as Springfield, French Settlement, and Maurepas. Adjustments to the current distribution formula are under consideration to address these inequities. ( https://www.wbrz.com/news/lpsb-discusses-re-distribution-of-revenue-across-school-districts/ )

Impact of Sales Tax Variability on Educational Funding:

The reliance on sales tax for educational funding introduces volatility, as economic fluctuations directly affect consumer spending and, consequently, tax collections. Periods of economic downturn can lead to reduced sales tax revenue, challenging the LPPS system to maintain consistent funding levels for schools.

Recommendations to Address Tax Collection Issues:

• Diversify Funding Sources: Explore alternative revenue streams, such as property taxes or dedicated education funds, to reduce dependency on sales tax.
• Implement Stabilization Measures: Establish reserve funds to buffer against economic downturns, ensuring stable funding for educational services during revenue fluctuations.
• Review and Revise Allocation Formulas: Regularly assess and adjust funding distribution models to ensure equitable support across all schools, particularly those with smaller student populations.
• Enhance Financial Transparency: Provide clear and accessible financial reports to stakeholders, fostering trust and informed decision-making regarding tax allocations and educational funding.

By addressing these tax collection issues, Denham Springs can work towards a more stable and equitable funding model for its educational institutions, ensuring all students receive quality education regardless of economic conditions.

What is the tax burden on the City of Denham Springs, Louisiana, for providing essential services such as sewer, water, police, and fire protection?

The tax burden for essential services in the City of Denham Springs, Louisiana—such as sewer, water, police, and fire—comes from a combination of property taxes, sales taxes, and service fees that residents and businesses contribute to fund municipal services. Here's a breakdown of these essential services and how they are funded:

1. Sewer and Water Services:
• Funding Sources:
  Sewer and water services are typically funded through user fees (utility bills) rather than direct taxes. Residents and businesses in Denham Springs pay monthly fees based on water consumption and sewer usage.
• Sewer Rates:
  Sewer rates in Denham Springs are structured to cover the operational costs of wastewater treatment, infrastructure maintenance, and future expansion. These fees are assessed per household or business and can increase if there is a need for significant upgrades to the sewer system.
• Water Rates:
  Like sewer services, water rates are billed based on consumption. The cost includes maintaining water distribution, treatment facilities, and ensuring safe drinking water. Rates can fluctuate depending on water demand, infrastructure needs, and ongoing maintenance costs.
2. Police Services:
• Funding Sources:
  Police services are primarily funded through local sales taxes, property taxes, and specific law enforcement grants. Sales tax revenue plays a major role in providing the operating budget for law enforcement in Denham Springs.
• Sales Tax for Police Services:
  A portion of the city’s sales tax revenue is earmarked for funding police operations, salaries, and equipment. Variability in sales tax collection (due to economic changes) can directly affect the police department’s budget and ability to maintain current service levels.
• Fines and Fees:
3. Fire Services:
• Funding Sources:
  Fire protection services in Denham Springs are funded through property taxes and local sales taxes. The Denham Springs Fire Department, like many in smaller cities, may also benefit from federal or state grants designed for emergency services.
• Property Tax for Fire Services:
  Property tax rates are established to fund public services, including fire protection. These taxes are assessed annually on homeowners and businesses, with a portion going toward the fire department’s operations and capital improvements.
• Fines and Fees:
4. General Tax Structure Impacting Essential Services:
• Property Taxes:
  Property taxes are one of the key sources of funding for local services, including emergency services (police and fire), public infrastructure (such as roads), and city management. Denham Springs residents and businesses contribute based on the value of their property.
  The tax rate (also called a millage rate) is set by the local government and can be adjusted through public votes or by the city council. Changes in property values can affect the overall tax burden for residents.
• Sales Taxes:
  A significant portion of funding for essential services comes from local sales taxes. Denham Springs imposes a local sales tax on goods and services purchased within the city limits. This sales tax is vital for funding not only the police and fire departments but also other critical services and infrastructure projects.
  • Denham Springs has a combined local and state sales tax rate that is higher than the national average, reflecting the city's reliance on this tax to fund essential services.
5. Additional Funding Considerations:
• Grants and Bonds:
  In addition to taxes and user fees, Denham Springs may utilize grants (such as those from FEMA or state infrastructure programs) to help fund major upgrades or emergency services. The city may also issue bonds to finance large infrastructure projects, which are paid back over time through taxes or utility fees.
6. Overall Tax Burden for Essential Services:
• Sales Tax 2025:
  Denham Springs has a local sales tax rate of 5.5%, on top of the Louisiana state sales tax rate of 5.0%, resulting in a combined rate of 10.5%.
• Property Tax Rate:
  The property tax rate (millage) in Denham Springs is determined by the city and parish and varies depending on the value of the property and the specific district in which it is located. The effective tax rate helps fund emergency services, schools, and infrastructure.
• Utility Costs (Sewer & Water):
  Monthly fees for water and sewer services are based on consumption, with rates that may fluctuate based on operational costs, maintenance needs, and infrastructure improvements.

Challenges:

The reliance on sales tax revenue introduces variability in funding for police and fire services, as changes in economic activity can impact collections. Similarly, aging infrastructure, especially related to sewer and water systems, may lead to increased fees or additional taxes to cover repair and replacement costs.
For more specific information on tax rates and their impact on essential services in Denham Springs, reviewing the city’s annual financial report or contacting the city’s finance department can provide a detailed breakdown.

Are there fines or fees in Denham Springs for property owners who fail to maintain their properties?

Yes, the City of Denham Springs, like many municipalities, has ordinances that impose fines and fees on property owners who fail to maintain their property. These rules are generally intended to ensure public health, safety, and aesthetic standards within the city. Here are some typical issues that can lead to fines or fees for property owners in Denham Springs:

1. Property Maintenance and Blight:
   Denham Springs enforces property maintenance codes to address blighted, neglected, or unsafe properties. This includes the following:
• Overgrown Grass and Weeds:
  Property owners are required to maintain their yards, keeping grass and weeds below a certain height (usually around 12 inches). If not maintained, the city can issue a citation or fine, and in some cases, the city may cut the grass and send a bill to the property owner.
• Debris and Trash:
  Properties with accumulated debris, trash, or junk can result in fines. This includes items such as abandoned vehicles, tires, construction debris, or household items left outside.
• Unsafe or Dilapidated Structures:
  Property owners who allow their homes or buildings to become unsafe, dilapidated, or structurally unsound may face enforcement actions. The city can issue citations requiring repairs or even demolition if the property is deemed a hazard.
2. Code Violations and Penalties:
   If a property is found in violation of the city’s property maintenance codes, the following may occur:
• Notice of Violation (NOV):
  The city will typically issue a Notice of Violation, giving the property owner a certain amount of time to address the issue (such as cleaning up the property or mowing the lawn).
• Fines:
  If the property owner does not comply with the NOV within the designated timeframe, fines may be imposed. The amount of the fine depends on the specific violation and how long it remains unaddressed.
• Municipal Liens:
  In cases where the city has to step in to correct the issue (e.g., mowing an overgrown yard or demolishing a dangerous structure), the city can place a lien on the property to recover the costs of the work performed. This lien would need to be paid before the property can be sold or transferred.
3. Enforcement of Zoning and Land Use:
   Property owners who use their property in violation of zoning ordinances (such as operating a business in a residential zone without proper permits) may also face fines and fees. These violations can lead to penalties, as well as the requirement to cease unauthorized activities or obtain proper permits.
4. Environmental Issues:
   If a property is contributing to environmental hazards (e.g., improper drainage, illegal dumping, or polluting waterways), the city can issue fines and require corrective action to resolve the issue. These types of violations can carry significant penalties due to the potential impact on public health and the environment.

Summary of Common Fines/Fees:

• Fines for not maintaining grass/landscaping.
• Fines for accumulating debris, trash, or junk on property.
• Penalties for unsafe or dilapidated structures.
• Fees for services (e.g., mowing or demolishing) performed by the city when a property owner fails to comply.
• Fines for improper use of property, including zoning violations.

Denham Springs likely has specific ordinances governing these issues, so property owners should consult local city codes or contact the Denham Springs Code Enforcement Office to get detailed information on maintenance requirements and associated fines.