By ROBIN SHANNON

L’Observateur

LAPLACE – In a move that will save the parish from losing a substantial amount of money on property tax collection, the St. John Parish Council voted Tuesday to keep the tax rate at the 2009 level.

Parish Assessor Whitney Joseph told the council at their regular meeting Tuesday that a reassessment of all property in the parish showed a $4.1 million decrease in the tax roll value. He said the reassessment showed that the parish would be required to roll millage rates back from 38.91 mills to 38.84.

Joseph explained that the decrease and tax roll value coupled with the millage roll back for 2010 would result in a loss of $500,000 for all of the parishes taxing bodies. If the tax rate is left at the 2009 rate, parish taxing agencies would only stand to lose about $162,000.

“This is the first year in many years we have seen such a dramatic loss,” Joseph said. “With the economy still in bad shape and the price of oil staying up, companies are reducing their inventories to cut costs.”

Joseph also referenced a sluggish real estate market parishwide. He said he had recently been told that the Sheriff’s Office averages about 30 foreclosures a month.

All parish agencies, including the Sheriff’s Office and School Board, levied a total of 117.9 mills in 2009. Each agency must now decide whether to lower the tax or keep it at the 2009 levels. Rates parishwide have dropped by nearly 9 mills since 2004, when the tax was levied at 126.82 mills.

The ordinance passed unanimously.

In other action from Tuesday, the parish opened bids on a drainage improvement project for the Balsam Street neighborhood of LaPlace. The drainage project is one of several tied to the 2009 bond issue. The apparent low bidder for the work was Sampey General Construction, which bid $60,058. Estimated budget for the project was $90,000.

The parish also awarded a contract for pavement improvements at the West Bank Park Complex to HHP Construction of LaPlace. The firm submitted a low bid of $239,840 for the work. The project, which is also tied to the 2009 bond issue, was budgeted at $248,920.

The council also introduced an ordinance to hold a special election to authorize use of revenue from a 1 percent sales tax for the parish’s water department. The measure would appear on the Nov. 2 ballot, pending council approval. The tax is normally applied to the wastewater and public works departments, but recent changes to the parish water system require more funding.

The parish also announced at the beginning of the meeting that parishwide flood insurance premiums will experience a 10 percent decrease in 2010.

A representative from the Community Rating System told the council that participation by residents and business owners has been “above and beyond” flood plain requirements. The 10-percent decrease translates into a savings of about $128,000 annually on flood insurance premiums.