The New Orleans City Council has unanimously voted to increase property taxes by rolling forward certain millages directly tied to the general fund.
Chief Administrative Officer Joe Giarrusso expects this move to generate $23.2 million a year in revenue.
Since budget hearings began in September, city leaders have been working to bridge a $100 million budget deficit.
Rolling forward the millages will now reduce the city’s budget deficit to a $40 million gap, meaning city leaders will be able to take some cuts off the table.
“A roll forward today potentially restores funding to citywide sanitation services, cleanup after Mardi Gras parades and special events, the low-barrier shelter, public defenders, the DA’s office, juvenile court, health department programs for mothers and babies,” Council Vice President Matthew Willard said.
Some council members have gone back and forth over whether to support the proposal, but on Thursday they all agreed it was a tough but necessary decision.
“I see no other way to raise the money that we need to maintain essential city services,” Councilwoman Lesli Harris said.
“We’ve got to keep progress in motion, and the best way to not keep progress in motion is to gut the budget, to gut our city’s workforce,” Councilman Jason Hughes said. “And I’m just not prepared to do that.”
It came after continued pushback from city residents who say a tax increase is not something most New Orleanians can afford. Some also said that properties in the city are often overvalued.
How much a property owner will pay will depend on the value of their home.
You can use the city’s millage impact calculator to estimate the change in your property taxes here.
Next, city leaders will have to decide which cuts to make to balance the budget with the remaining $40 million deficit. The council will vote on a final budget proposal on November 19.
READ MORE:New Orleans City Council votes to increase property taxes to address budget deficit
