Holden, opponents split on fees, budget
SEWER FEES: Holden continued the 4 percent annual increases in sewer fees implemented under former Mayor Bobby Simpson to help bring the aging sewer system into compliance with federal standards. The 4 percent increases are slated to continue through 2014. This year, the average residential sewer fee increased from $33.37 to $34.70.
GARBAGE FEES: When Holden took office in 2005, East Baton Rouge Parish residents paid $8 a month for garbage and recycling service. Since then, it has increased to $19. In the process, Holden phased out a 5.55-mill property tax that was imposed on property in unincorporated areas for garbage services.
IMPACT FEES: Under Holden, traffic impact fees on new construction were increased from $200 to $732 on an average new home.
CASINO TAXES: Until this year, the two riverboat casinos in Baton Rouge paid a local tax of $2.50 for each patron. Holden pushed for state legislation to increase that to a percentage of the riverboat’s gambling revenues, which now is expected to bring in an extra $2.7 million a year for the city-parish. The new riverboat, Pinnacle, agreed to pay a flat 4.5 percent of its gambling revenues to the city, while the Belle of Baton Rouge and Hollywood Casino both agreed to sliding scales that will force them to pay up to 4.5 percent, if their revenues reach a certain level.
ROAD TAXES: In 2005, Holden persuaded voters to extend the half-cent sales tax dedicated to roads for 23 years so part of the money could be bonded and used for his Green Light Plan.
CAPITAL IMPROVEMENT TAXES: Holden is asking East Baton Rouge Parish voters Nov. 4 to approve a new half-cent sales tax and a 9.9-mill property tax to fund a $989 million construction package that includes a riverfront tourist attraction, expansion of the River Center, drainage repairs, bridge replacement and other projects.
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Mayor-President Kip Holden’s two Republican opponents both like to refer to him as a “tax-and-spend liberal” because he’s raised garbage fees, impact fees and casino boarding fees.
Holden’s other opponent, fellow Democrat Ron Johnson, also blasts Holden, saying he is callous to the plight of the needy and elderly by imposing those same fee increases.
All three challengers are quick to point to the fact the city-parish has received more than $182 million in surplus funds over the past five years.
“He hasn’t seen a fee yet that he didn’t want to increase,” Republican Dan Kyle, a CPA and a former state legislative auditor, said of Holden.
Republican Wayne Carter, who is Holden’s most-outspoken critic on the Metro Council, agreed.
“It’s all tax and spend, and that’s the liberal philosophy that they live by,” Carter said.
“The (city-parish) budget started out at about $575 million, has grown to almost $700 million in four years. What does that tell you?” Carter asked.
Holden contends his administration has been conservative in budgeting and spending the surplus, which has prompted Wall Street to give the city-parish the highest bond rating in its history.
The higher bond rating translates into a savings of millions of dollars on city-parish bond issues, Holden said.
Holden noted his administration has relied heavily on LSU economists Loren Scott and Jim Richardson for conservative revenue projections in building its budgets.
“I’d like to know who my opponents are going to bring in to counter those guys,” Holden said of Scott and Richardson.
Carter said that, at the very least, part of the surplus should have been used to subsidize residential garbage service so fee increases wouldn’t have been necessary.
Local residential garbage fees were $8 a month when Holden took office four years ago, and have risen to $19 a month, Carter said.
Holden acknowledged he’s received some criticism for raising garbage fees at a time when surplus revenues were abundant.
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