Budgetary Information

Statement of the Mid-City Security District on the Increase in Parcel Fees

On September 15, 2016, the Commissioners of the Mid-City Security District voted to increase the security district fees by 10 percent. For most Mid-City residential property owners, this means an increase in the annual fee from $200 to $220. This is the first increase in the fee in the district’s eight-year history.

The increase was made necessary by an increase in operating costs, specifically the cost of hiring New Orleans Police Department officers on an overtime basis to patrol on behalf of the MCSD. Every time NOPD officers receive a well-deserved increase in pay, the costs to MCSD go up 150 percent due to the overtime pay structure.

An event which occurred at the beginning of June, however, greatly drove up the cost of MCSD patrols. The MCSD has long questioned whether or not the rate at which it was being billed by City of New Orleans for patrol officer salaries was too low. Despite assurances from the City that the billings were correct, when the City switched to a new payroll management system, the billing was corrected, and the bi-weekly patrol costs suddenly jumped from an average of $30,500 to $51,800, a 70 percent increase. Needless to say, this increase was not in the budget for the balance of 2016.

When the MCSD was first created, delays between when the parcel fees were first collected and when the patrols were actually started (delays caused by the need to purchase patrol vehicles, ratify a cooperation agreement with the city, and other issues) caused the buildup of a sizable cash reserve. Over the years, this reserve allowed an increase in expenditures on patrols and the purchase of additional patrol vehicles, and eliminated the need increase parcel fees despite increased costs.

With the sudden increase in the billings from the City, the remaining cash reserve is not sufficient to cover the cost of maintaining patrol levels at their current levels through 2017. The Commissioners of the MCSD, therefore, were left with two choices – curtail the patrol hours or increase the parcel fees on residents and businesses. The Board chose to combine the two approaches:

  • First, it approved a decrease in patrol hours, but managed in such a way as to minimize the negative impacts on the safety of Mid-City residents. The Board of the MCSD remains committed to having patrols on the streets 24-hours a day, but the number of those patrol officers at any one time may be reduced during certain periods.
  • Second, the Board voted to increase the parcel fees by 10 percent for 2017. This results in the fee for residential property owners increasing from $200 to $220, for business properties from $300 to $330, and for residential properties with an age freeze in place for property taxes from $100 to $110. These fees are still below the statutory maximums of $250 for residential properties and $350 for commercial properties.
  • In addition, the Board will continue to work with the Assessor and the City to maximize compliance and property classification of residential and commercial parcels.

The MCSD operates on a very lean budget. Of the roughly $1,050,000 budgetted for 2017, only about $50,000 is spent on accounting, audit, legal and insurance services required for a state governmental entity, along with the cost of street lights on certain high-risk areas, lights that have proven effective in reducing crime in those areas. The rest is spent on patrol officer salaries and vehicles. The patrol vehicles suffer significant wear and tear being driven thousands of miles on Mid-City’s streets. The MCSD Commissioners are all unpaid volunteers.

mlukeStatement of the Mid-City Security District on the Increase in Parcel Fees
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2013 Year End Financial Statement

Becker Rutledge, LLC

A CERTIFIED PUBLIC ACCOUNTING FIRM
Heritage Plaza, Suite 710 ° 111 Veterans Boulevard Metairie, Louisiana 70005
Telephone 504.832.1664 Facsimile 504.835.6088

ACCOUNTANTS’ COMPILATION REPORT

To the Board of Commissioners
Mid-City Security District
New Orleans, Louisiana

We have compiled the accompanying statement ot assets, liabilities and equity-cash basis ofthe
Mid-City Security District as of December 31, 2013 and the related statements of revenue and
expenses«cash basis torthe three months and twelve months ended December 31 , 2013. We have
not audited or reviewed the accompanying ñnancial statements and, accordingly, do not express an
opinion or provide any assurance about Whether the financial statements are in accordance with the
cash basis of accounting.

Management is responsible for the preparation and fair presentation ofthe financial statements in
accordance with the cash basis ot accounting and for designing, implementing, and maintaining
internal control relevant to the preparation and fair presentation of the financial statements.

Our responsibility is to conduct the compilation in accordance with Statements on Standards for
Accounting and Review Services issued by the American Institute of Certified Public Accountants.
The objective of a compilation is to assist management in presenting financial information in the
form offinancial statements Without undertaking to obtain or provide any assurance that there are no
material moditications that should be made to the financial statements.

Management has elected to omit substantially all ofthe disclosures ordinarily included in financial
statements prepared in accordance with the cash basis of accounting. lf the omitted disclosures
were included in the financial statements, they might influence the user’s conclusions about the
Company’s assetsI liabilities, equity, revenues, and expenses. Accordingly, the financial statements
are not designed for those who are not informed about such matters.

We are not independent with respect to the Mid-City Security District.

Metairie, Louisiana
January 13, 2014

Mid-City Security District
Statement of Assets, Liabilities & Equity Cash Basis
As of December 31, 2013

Dec 31. 13

ASSETS

Current Assets

Checking/Savings
Cash Accounts

FlrstNBC 1,015,970

Total Cash Accounts 1,015,970

Total Checking/Savings 1.015.970

Total Current Assets 1,015,970

TOTAL ASSETS 1,015,970

LIABILITIES & EQUITY

Equity

Restricted Net Assets 1,257,282
Net (Loss) (241,312)

Total Equity 1.015.970

TOTAL LIABILITIES & EQUITY 1,015,970

 

Mid-City Security District
Statements of Revenues and Expenses Cash Basis
Three Months and Twelve Months Ended December 31, 2013

Oct- Dec 13 Jan Dec 13

Ordinary Income/Expense

Income

Direct Public Support 17.619 955.114
Investments 4,746 20.726

Total Income 22,366 975.840

Expense

Police and Other Security 244.514 1,039,925
Automobiles for the City of NO 5.171 78,815
Contract Services 21,516 44,589
Operations 8,224 35,568

Other Types of Expenses Y 0 18.254

Total Expense 279,425 1217.152

Net Ordinary (Loss) (257.059) (241512)

Net (Loss) (257.059) (241,312)

JeffLoquist2013 Year End Financial Statement
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2014 Budget Resolution

Mid-City Security District
Special Taxation District

Resolution
No. 2013-0 2

New Orleans, LA
September 19, 2013

To he Adopted at the District’s October 17, 2013 Meeting
By: Commissioner Harley Winer
Seconded By: Commissioner Ben Markey

A RESOLUTION adopting the 2014 Budget of the Mid-City Security District. È

WHEREAS, The Mid-City Security District (“District”) was created by the Louisiana Legislature by La R.S. 339091.14 to
promote and encourage security within the parish of Orleans;

WHEREAS, the boundaries of the District are defined in La, R. S. 33:9091.14(B) to be the area Within and including the
following perimeter: Tulane Avenue (both sides), Interstate 10 (interior side), City Park Avenue (interior side), West Moss Street
(interior side), Orleans Avenue (both sides), and North Broad Street and South Broad Street (both sides);

WHEREAS, on November 4, 20|] 8, a majority of the voters of the District approved a special annual fee, referred to as the “Mid-
City Security District Fee” on each improved parcel of land in the District to support the Districts activities’,

WHEREAS, the fee approved by the voters is currently an amount not less than two hundred dollars ($200) and not to exceed
two hundred filly dollars ($2 50) for each improved residential parcel in the District and not less than three hundred dollars (S 300) and not ’oo exceed three hundred seventy- five dollars ($375) for each improved commercial parcel in the District’,

WHEREAS, the fee was authorized for a period of six (6) years, and will expire on December 31, 2014;

WHEREAS, the Board of Commissioners of the District desires that the City Council of New Orleans levy and collect such a
parcel fee of $20 0.00 for residential parcels and $3 00 for commercial parcels on each parcel within the District, and add such fee
to the property tax bills to be issued by the City of New Orleans to the owners of the property within the District and subject to
the fee for the tax year commencing 2014′,

WHEREAS, in connection with the City Couneil’s levy and collection of the aforesaid $20 0.00 or $3 00. 00 parcel fee, it be
necessary and proper that the Board of Commissioners adopt a budget of revenue and expenditures for 2014 which indicate how
the proceeds of the aforesaid $20000 or $30000 parcel fees will be expended for the purpose of promoting and encouraging
security within me District;

N OW, THEREFORE, BE IT RESOLVED THAT, by the Board of Commissioners of the Mid~City Security District, the
following budget of revenue and expenditures for 2014 which indicate how the proceeds for the aforesaid $200.00 or
$30000 parcel fee will be expended for the purpose of promoting and encouraging security within the District, is adopted.

Parcel Fees 990,000

Interest Income l 3, 00 U

Total revenues S 1,003, 00 0

Patrol and Security Programs 1,100,000
Police Cars S 30,000

Insurance 20,000
Operations(*) 15,000
Accounting Fees 15,000
City Collection Fees (1%) 10,000
Legal Fees S 25,000
Special Projects(**) S 25,000

Total expenditures 1,240,000

Excess expenditures over revenues (237,000)

FUND BALANCE, BEGINNING S 801,291

FUND BALANCE, ENDING 564,291

* Operations include Police Cell Phones, Website, Etc.
** Special Projects include Newsletters, Postage, Stay Safe-Stay Informed Community Awareness Program, Etc.

BE IT FURTHER RESOLVED THAT, the City Council of the City of New Orleans is hereby requested to collect and levy the
SZU 0.00 parcel fee for residential parcels and $30 0,00 parcel fee for commercial parcels approved by the voters of the District on November 4, 2008, and to include said fee in the property tax bills to be issued by the City of New Orleans to owners of the
parcels within the District and subject to the aforesaid parcel fee for the tax year commencing 2014.

YEAS: Commissioners Jim Olsen, Ben Misko, Jody Waltz, Hańey Winer, Ben Markey
NAYS: NONE
ABSENT: NONE

CERTIFICATE

As Secretary of the Mid City Security District, I hereby certify that the forgoing is a true and correct copy of a resolution duly
and legally adopted by the Board of Commissioners of the Mid-City Security District, añer due notice, and that said resolution
has not been rescinded, modified or recalled, and is in full force and effect.

JeffLoquist2014 Budget Resolution
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Budget 2013-01 Amended

Mid-City Security District
Special Taxation District

Resolution

No. 2014-01

New Orleans, LA

February 4, 2014

Adopted at the District’s January 16, 2014 Meeting

By: Commissioner Jody Waltz

Seconded By: Commissioner Ben Misko

A RESOLUTION amending the 2013 Budget of the Mid-City Security District.

WHEREAS, The Mid-City Security District (“District”) was created by the Louisiana Legislature by La. R.S. 33:9091.14 to promote and encourage security within the parish of Orleans;

WHEREAS, the boundaries of the District are defined in La. R.S. 33:9091.14(B) to be the area within and including the following perimeter: Tulane Avenue (both sides). Interstate 10 (interior side). City Park Avenue (interior side). West Moss Street (interior side), Orleans Avenue (both sides), and North Broad Street and South Broad Street (both sides);

WHEREAS, on November 4,2008, a majority of the voters of the District approved a special annual fee, referred to as the “Mid-City Security District Fee” on each improved parcel of land in the District to support the District’s activities;

WHEREAS, the fee approved by the voters is currently an amount not less than two hundred dollars ($200) and not to exceed two hundred fifty dollars ($250) for each improved residential parcel in the District and not less than three hundred dollars ($300) and not to exceed three hundred seventy-five dollars ($375) for each improved commercial parcel in the District;

WHEREAS, the fee was authorized for a period of six (6) years, and will expire on December 31, 2014;

WHEREAS, the Board of Commissioners of the District desires that the City Council of New Orleans levy and collect such a parcel fee of $200.00 for residential parcels and $300 for commercial parcels on each parcel within the District, and add such fee to the property tax bills to be issued by the City of New Orleans to the owners of the property within the District and subject to the fee for the tax year commencing 2014;

WHEREAS, in connection with the City Council’s levy and collection of the aforesaid $200.00 or $300.00 parcel fee, it be necessary and proper that the Board of Commissioners adopt a budget of revenue and expenditures for 2014 which indicate how the proceeds of the aforesaid $200.00 or $300.00 parcel fees will be expended for the purpose of promoting and encouraging security within the District;

NOW, THEREFORE , B E IT RESOLVED THAT, by the Board of Commissioners of the Mid-City Security District, the

following budget of revenue and expenditures for 2014 which indicate how the proceeds for the aforesaid $200.00 or

$300.00 parcel fee will be expended for the purpose of promoting and encouraging security within the District, is adopted.

I. 2013 BUDGET as amended

REVENUES:

Parcel Fees $ 990,000

Interest Income $ 3,000

Total revenues $ 993,000

EXPENDITURES:

Patrol and Security Programs $ 1,200,000

Police Cars $ 80,000

Insurance $ 18,000

Operations $ 25,000

Accounting Fees $ 10,000

Legal Fees $ 35,000

Special Projects $ 50,000

Total expenditures $ 1,418,000

Excess expenditures over revenues $ (425,000)

FUND BALANCE, BEGINNING $ 1,218,291

FUND BALANCE, ENDING $ 793,291

BE IT FURTHER RESOLVED THAT, the City Council of the City of New Orleans is hereby requested to collect and levy the $200.00 parcel fee for residential parcels and $300.00 parcel fee for commercial parcels approved by the voters of the District on November 4, 2008, and to include said fee in the property tax bills to be issued by the City of New Orleans to owners of the parcels within the District and subject to the aforesaid parcel fee for the tax year commencing 2014.

YEAS: Commissioners Olsen, Winer, Misko, and Waltz
NAYS: 0
ABSENT: Commissioner Markey

CERTIFICATE

As Secretary of the Mid City Security District, I hereby certify that the forgoing is a true and correct copy of a resolution duly and legally adopted by the Board of Commissioners of the Mid-City Security District, after due notice, and that said resolution has not been rescinded, modified or recalled, and is in full force and effect.

JeffLoquistBudget 2013-01 Amended
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