forgotston.com

(First in an occasional series)

With this being the first Post-Katrina Thanksgiving for New Orleans, I thought it would be interesting to find out how many are spending the holidays.

Some of you are fortunate enough to be back living in the city in your nice FEMA trailer with a microwave oven to bake up the traditional Thanksgiving feast. Others are doing the traditional thing of joining relatives, in other parts of the state and country for the holidays. Of course, you didn’t have to travel as far this year as you arrived at the relatives’ in late August or early September.

Still others remain comfortable in your hotel rooms where you will be to go to the hotel dining room and partake of all the fixings with your family, fellow refugees and strangers.

It is always interesting to see how important people are spending their holidays. Today, we look at Mayor Ray Nagin of New Orleans and Dallas. As his city remains in shambles and 400,000 of its citizens are displaced around the country, we find the mayor working, as usual.

The mayor and his family are currently staying, complimentary (no FEMA money for him), at a villa in Jamaica. However, if you think that he is merely relaxing and having fun, you would be wrong. Mayor Nagin is promoting economic development via trade relations with Jamaica. See story here.

Additionally, the mayor has taken out time from his busy schedule to blast the Federal Government from whom he is currently begging for cash. The mayor says the Feds slow response was simply because of racism. See story here.

I can’t help, but wonder how and where Mayor Rudy Giuliani spent his first Thanksgiving following the 9/11 tragedy.

Happy Thanksgiving.

C.B.

Uncategorized CB 8:00 am

It’s the last day of the lege “ordinary” Extraordinary Session and it is difficult find anything meaningful that has been accomplished.

A few comments from those who should know:

Roderick Hawkins, Blanco’s deputy press secretary, said “too many things are still up in the air” for the governor to assess how the session is going heading into this final day. Lafayette Daily Advertiser, November 22, 2005

“The only thing they put to bed so far is the coast” legislation, Butch Speer, clerk of the House, said. “That’s because the Senate accepted our amendments” on bills that create a new authority over levees and rebuilding the state’s Gulf coast. Lafayette Daily Advertiser, November 22, 2005

Pretty sad commentary for 16 days of “work” after 2 months of inaction in dealing with the biggest combination man-made and natural disasters in the history of the U.S.

It’s nothing but business as usual at the Capitol.

C.B.

Uncategorized CB 9:12 am

There’s been a lot of talk about delaying ad valorem property tax bills and about reassessing property post Hurricanes Katrina and Rita. Re-assessments, especially in the flooded areas (most of Orleans Parish), will mean a dramatic reduction in the overall base of taxable property. As I understand the law, all flooded property is subject to being re-assessed. Legislation will be introduced in the Special Session to include wind-damaged property.

At first blush, that may seem like good news to property owners in the affected areas. It could be to some, but will mean huge tax increases to others — mostly businesses.

The millages that go to pay outstanding debt of local governmental agencies will automatically roll-up (no vote of the agency or the people) to generate enough revenue to pay the debt service on the outstanding bonds.

For homeowners the above scenario may not mean a big hit if the new assessed value of a owner-occupied house is below $75,000 or lower. However, for commercial (including residential rental) and industrial properties this could mean massive tax increases. Theoretically, one business could pay for the entire debt service of a taxing district while homeowners pay none of it. This situation will also will mean higher taxes on undamaged residential property (over $75k) in each affected parish.

Unfortunately, to date, all the focus seems to be on how to provide revenues to continue to operate local government. Focus must be also directed to the potential to further dampen the economic recovery in LA, especially when it comes to small and capital intensive businesses.

C.B.

Uncategorized CB 8:00 am