Opinion
No. 08-110.
Filed: June 5, 2008. DO NOT PUBLISH
APPEAL FROM THE FIFTEENTH JUDICIAL DISTRICT COURT PARISH OF ACADIA, NO. 77084 HONORABLE EDWARD D. RUBIN, DISTRICT JUDGE.
AFFIRMED.
Daniel E. Broussard, Jr., Counsel for Plaintiff-Appellant: Professional Firefighter's Association.
Thomas K. Regan, Counsel for Defendant-Appellee: City of Crowley.
Court composed of JIMMIE C. PETERS, MICHAEL G. SULLIVAN, and J. DAVID PAINTER, Judges.
Peters, J., concurs in part and dissents in part and assigns written reasons.
Plaintiff, Local Number 1442, Professional Firefighter's Association (Local 1442), appeals the judgment of the trial court denying its petition for a judgment seeking a declaration that the City of Crowley (the City) must use 33? percent of the sales tax approved by the voters in 1981 for salary increases for all fire personnel. Finding that the trial court correctly held that "the funds generated from the 1981 tax initiative are being utilized in accordance with the intent of that initiative, as well as the law," we affirm the judgment of the trial court.
FACTS AND PROCEDURAL HISTORY
In late 1981, the voters of the City of Crowley approved a sales tax proposition authorizing the City to levy and collect a tax of one-half of one percent on "the sale at retail, the use, the lease or rental, the consumption for storage, or use, or consumption of tangible personal property and on sales of services in the City. . . ." The voters chose to have the tax used for the purpose of salary increases for City employees and chose to have the proceeds equally divided, with 33? percent to all City employees not otherwise covered here, 33? percent to all fire personnel, and 33? percent to all police personnel. It is undisputed that the sales tax proceeds have been used for the increased cost of wages above the base pay for each employee and for the associated expenses and costs related to the employee's salary increase, including contributions to the retirement fund, FICA taxes, workers' compensation insurance premiums, and unemployment insurance premiums.
In April 2001, Local 1442 filed a petition for declaratory judgment asserting that the taxes were not being used as required by the sales tax proposition. After a trial on the merits, the trial court found that the funds generated by the tax initiative were being used as intended. Local 1442 appeals.
DISCUSSION
On appeal, Local 1442 asserts that the trial court erred in failing to find that the City violated the terms of the sales tax proposition by using the sales tax proceeds to fund all pay increases of the Crowley Fire Department since 1981, promotional increases for fire personnel after 1981, future overtime pay for fire personnel, and base pay for all fire personnel promoted after 1981.
In ruling on the matter, the trial court stated that:
The Court has heard the testimony of Ms. Istre, Ms. Judy Istre, who is the City Clerk for a period of twenty-seven (27) years, and considering the memorandums and the exhibits that have been filed in these proceedings, the Court finds that the funds generated from the 1981 tax initiative are being utilized in accordance with the intent of that initiative, as well as the law.
Ms. Istre's testimony was quite impressive in that the base salary, based on her testimony, of all firefighters is paid out of the General Fund and not this tax initiative or revenue generated from the tax initiative, the subject of this lawsuit.
Ms. Istre testified that the sales tax proceeds are used only for salary increases. Base salary comes from the general fund. She further testified that since 1982, any increase in salary has come from the sales tax proceeds, including increases for promotion, rank and grade, longevity, and service. She affirmed that every increase above base salary has come out of the sales tax proceeds when those funds were sufficient to cover the increase. She stated that some years the sales tax collected was not sufficient to cover the scheduled raises, and, in those years, any shortfall comes from the general fund. Ms. Istre testified that before the sales tax was passed, all raises came from the general fund.
Local 1442's argument is essentially that the sales tax was meant to provide for salary increases over and above those already being provided for from the general fund at the time the tax initiative was passed. Local 1442 cites Fraternal Order of Police Crescent City Lodge No. 2 v. City of New Orleans, 01-52 (La.App. 4 Cir 2/19/03), 840 So.2d 36, writ denied, 03-1216 (La. 10/3/03), 862 So.2d 960, in support of its argument. We note that, even if we found that case to support Local 1442's argument, we would not be bound to follow its holding. However, we find that case to be inapposite. In that case, it was clear that the police officers were not only not receiving an increase but that their salaries had been reduced by the amount received from the tax millage. The testimony in this case shows that the firefighters are receiving their full base pay from the general fund as well as any raises that are not covered by the sales tax millage.
Having reviewed the evidence and testimony of record, we find no error in the trial court's conclusion that the proceeds of the sales tax are being used as contemplated by the sales tax initiative.
CONCLUSION
For these reasons, the judgment of the trial court is affirmed. Costs of this appeal are assessed to the Plaintiff-Appellant, Local 1442, Professional Firefighter's Association.