City government braces for sales tax dip

Donaldsonvillecityhall 2015

Following a boost in the local economy over recent months, city leaders are preparing for finances to return to previous trends.

During the July 26 City Council meeting, officials heard a report from Finance Director Sandra Cost Williams.

Sales tax collections have been on a downward trend as of late. This comes after a recent spike in activity at CF Industries' Donaldsonville location, which represents North America's largest nitrogen operation.

A $2.1 billion expansion project at the facility brought with it increased economic activity to the Donaldsonville area.

As the project wound down to completion, sales tax trends began to return to normal.

Williams said the last four months have brought a decrease in collections since the start of the year.

Also, consumption has been down in other areas. For example, Williams said gas bills have been lower due to less use and a mild winter.

"It's something we have to definitely keep our eyes on," Mayor Leroy Sullivan Sr. said.

One potential boost in collections could come from new businesses, such as incoming fast-food chain Taco Bell. Construction for the restaurant has started along Hwy. 3089.

In another matter addressed during the meeting, the Council voted 5-0 in favor of Ordinance 2016-10, which amended a section of the ordinance concerning speed limits in the city.

The speed limit on city streets is 25 miles per hour, with the exception of school zones (10 mph) and St. Vincent Street (15 mph).

St. Vincent runs along Ascension of Our Lord Catholic Church and Ascension Catholic School property.

Speed limits on highways are set by the state.

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