Economic Development Parcel Fee Proposition

Election Date: November 3rd

The Vermilion Economic Development Alliance (VEDA) is placing a parcel fee proposition on the ballot with the purpose of increasing economic development activity in the parish.

No other agency, governmental entity, or private group before or since has been dedicated to sustaining the parish’s economy. And, we’re doing it with agencies that represent the whole parish ensuring cooperation and collaboration.

If you still have questions after you’ve reviewed the information, feel free to reach out via the phone number listed on the website or via email.

Thank you for your interest!

Definition

A “parcel” is one or more lots, subdivided portions of ground, or individual tracts of taxable property identified by an individual assessment number on Vermilion’s tax rolls

Why use a Parcel Fee to fund economic development?

  • No property? No fee!
  • Doesn’t generate a tax bill if you aren’t currently receiving one
  • If individual tracts are grouped together and given the same assessment number, only one parcel fee will be levied
  • Unlike a property tax, the fee charged is not based on the value (or size) of the land owned
  • Doesn’t target businesses: fee not affected by business inventory, machinery or equipment
  • Doesn’t rely on public agencies who need funding for other priorities like roads, police and fire protection, and utility infrastructure

Downloadable Information

Parcel Fee Math

Fee would generate $236,438/year compared to the $136,000 current budget and recommended $273,712.50 budget.

*According to the International Economic Development Council standards based on parish population & Louisiana Community Competitiveness Initiative

Proposition Ballot Language

Shall the Vermilion Economic Development District, State of Louisiana (the “District”), be authorized to levy an annual parcel fee of $7.75 on all the property subject to taxation in Vermilion Parish, for a period of ten (10) years, beginning with the year 2021 and ending with the year 2030 (an estimated $236,438 reasonably expected at this time to be collected from the levy of the fee for an entire year), for the purpose of acquiring, constructing, improving, maintaining or operating industrial facilities or to conduct activities that stimulate the economy, leverage local resources, and/or provide workforce opportunities?

Budget Breakdown

Like many small businesses, small economic development offices spend the majority of their budgets on payroll and related expenses. Organizations like ours can maximize limited resources by employing experienced staff who can accomplish tasks in house and minimize costs through relationship-building.

With the implementation of a parcel fee, however, our office would have far more revenues to devote to programmatic costs. You can see from the chart below that with our current budget, about 73% of funds are used for staff and payroll taxes. By applying incremental administrative costs associated with increased funds, the Alliance still has an additional $92,000 to spend on things like business attraction, professional development for local businesses, shop local advertising and so much more! Programmatic spending could increase by more than 600%! 

Current Budget = $136,000

  • Payroll & Taxes
  • Administrative Costs
  • Programmatic

With Parcel Fee ($236,000)

  • Payroll & Taxes
  • Administrative Costs
  • Programmatic

Frequently Asked Questions

Is there a difference between VEDD and VEDA?

No, they are the same organization. Vermilion Economic Development District is our official governmental designation. Our district is the entire parish. Vermilion Economic Development Alliance is our d.b.a. Since we are an alliance of 11 local agency, we thought that it was a more accurate description of who we are.

How do you get your funding now?

The majority of our funding comes from other public entities: the Vermilion Parish Police Jury, School Board, towns and cities. The remaining comes from grants (usually a reimbursement for services we’ve provided) or from private investors. We are currently in a funding cycle, but you can see a list of our contributors here.

How are other economic development programs funded?

Many parishes in Louisiana have a millage (property tax) or sales tax. Others are funded by their parish government or compete with charitable organizations for private dollars. This would be the first economic development parcel fee in Louisiana, but similar to the Texas model. Texas collects money locally and rather than sending it to the state capitol, they retain it in a county fund that can be used for economic development financing. They use property taxes, but we think this fee is much smarter since it doesn’t change from year to year and it doesn’t negatively impact our businesses, large land owners, and farmers.

How are decisions made at VEDA?

We have a 15-member board that provides a vision and fiscal oversight. Our staff comes up with a strategy to realize that vision and makes decisions with the board on how to execute their plan. The board meetings are open to the public and appointing authorities can give their input on any issue through their designated appointee or directly to the Executive Director at any time. To see a full list of our board and staff, visit The Alliance page.

What is your mission and vision?

Our mission is “Develop Vermilion.” Develop Vermilion means we facilitate business growth, retention and expansion, and assist industry interested in relocating here while preserving our natural environment.

Our vision is a Vermilion that embraces its cultural and rural identities and creates opportunities where both are preserved and celebrated. That guides what we proactively do. We work with the community to build out the necessary elements – be it infrastructure, business, or programming – to make sure that our identity as a community can remain in tact.