4/2005 UPDATE. Please refer to the 4/05 newsletter.
11/2004 UPDATE. The proposed Lakewood Crime Prevention and Improvement District passed, by the overwhelming majority of 572 voting in favor versus 150 against. To view the legislation, please click here. Note: Your 2005 property tax bill will include the 2005 District fee of $400 approved by the voters in this election.
9/04 UPDATE. Our legislation has been approved and signed by the Governor. To view the final copy of the legislation, please click here.
WHAT IS THIS ALL ABOUT? Your LPOA board has evaluated the feasibility of establishing a security and improvement district in Lakewood, similar to those created recently in the Garden District, Lakeview and other New Orleans areas. By doing so, we get 100% participation, required by law, compared to the 80% voluntary participation we currently have. Your board has voted unanimously to pursue this further.
WHAT DOES IT MEAN TO YOU? Our treasurer has concluded that, with 100% participation, we can reduce the dues initially from $450 back to their former $400 level. Also, assuming you itemize your deductions, and the $400 is tax deductible, it potentially reduces your after-tax cost to $280 (assuming a 30% marginal tax bracket). Consult your tax advisor for details.
The proposed legislation was discussed at the October, 2003 membership meeting (see meeting minutes). It will also be discussed again at the Spring and Fall meetings in 2004. The vote by Lakewood community residents will be in November, 2004. To see the steps in the election call process, click here.
WHAT IS BEING PROPOSED? To create a security and improvement district for the geographic area covered by the LPOA (referred to herein as the “Lakewood community”).
WHY? It requires all homeowners to pay their fair share of neighborhood costs for security.
WHEN DO WE VOTE ON THIS? At the presidential election on Tuesday, November 2, 2004.
WHAT IS REQUIRED TO PASS IT? A majority vote by the Lakewood community voting on this issue in the election.
WHAT IS THE INITIAL TERM? It starts on 1/1/05, and ends on 12/31/10.
WHAT IS THE ANNUAL COST? $400 initially, not to exceed $450 annually through 2010.
IS THIS COST BASED ON MY PROPERTY VALUE? No, it is a flat fee, just like current LPOA dues.
CAN THIS FEE BE INCREASED? After the initial six year term, the fee can be increased, but only by a majority of voters voting to renew the district.
WHO COLLECTS THE MONEY? The City of New Orleans, along with property taxes. Those who don’t pay have a tax lien filed against their property.
WHO RUNS THE NEW DISTRICT? A seven person Board of Commissioners, all of whom must live in the Lakewood community and be property owners here. The current Lakewood South commissioners are: Stuart Smolkin, Steve Benton, Jay Krieger and Judge Louis DiRosa. The current Lakewood North members are: Donnie Weil, Susan Revels and Andrea Smith.
DO WE PAY THE BOARD? No. Their services are voluntary (like the LPOA Board).
WHO DECIDES HOW THE MONEY IS SPENT? The Board of Commissioners.
ARE THERE PEOPLE LIVING IN APARTMENTS WHO CAN’T AFFORD THIS? No. The apartments east of Fleur De Lis are not included in Lakewood.
WHAT IF THE LEGISLATION DOESN’T PASS? We continue with LPOA as a voluntary organization, with higher dues for the 80% of those of us who voluntarily pay.
IS THE IMPROVEMENT DISTRICT ASSESSMENT TAX-DEDUCTIBLE FROM FEDERAL INCOME TAXES? We suggest consulting your tax advisor. We can not assure that it is tax deductible, but we have been told that most people deduct it and we do not know of anyone who has been challenged.
WHO CONTROLS THE SELECTION OF OUR SECURITY COMPANY? DO WE HAVE TO USE NOPD? Our improvement district board makes this decision. We intend to continue using our current security company (Metro Security).
HOW DOES THE CASH COLLECTED BY THE CITY FLOW TO US? As taxes are collected, the funds are disbursed to us on a monthly basis. The city keeps 1% as a collection fee (about $1,600 annually).
ARE WE SELLING OUR SOULS TO THE CITY? No, based on our interviews of other improvement districts which have been in operation for several years.
ARE THERE PROBLEMS GETTING OUR MONEY FROM THE CITY? None were mentioned by any of the improvement districts we interviewed.
HOW CAN WE TERMINATE THE SID? It ends in 2010 unless re-approved by the Lakewood voters. There is also a provision in our legislation for ending it sooner (see www.lakewoodns.org for a copy of the legislation).
WHAT WILL HAPPEN TO THE EXISTING LPOA SURPLUS IF THE IMPROVEMENT DISTRICT IS APPROVED? We anticipate that it will remain with LPOA, which will continue to be responsible for neighborhood improvement activities. LPOA will also receive funding from the improvement district for this purpose.