(The Center Square) – The Caddo Parish Commission voted to appropriate $10 million for a pickleball facility during Thursday’s meeting. While this is a vote in favor of appropriating the funds, the administration still plans to bring forward contracts, bond negotiation, plans and other information at a later time before the commission.
Caddo Parish taxpayers are concerned that the heavily debated $10 million pickleball facility coming to the area won’t generate enough money to pay back the revenue bonds being issued, resulting in the use of taxpayer funds to pay the debt.
Nine commissioners voted in favor, while three voted against the appropriation.
As the project moves forward, questions remain about the use of taxpayer funds in the wake of revenue not being generated to pay back the bonds. However, now that the funds are appropriated, the administration is seeking additional information.
“We understand that this effort is being funded by revenue bonds. Bonds that will have to be sold. We are anticipating that we will receive sufficient revenue to be able to address the payments on a month-to-month basis,” said Shreveport resident Jon Glover during this week’s work session. “But, if such isn’t then that means you’ll have to use taxpayers’ dollars regardless of what fund they come out of. They’re taxpayer dollars.”
Opinions vary on the complex. Some residents believe no one will benefit, while others think it could be a significant step forward for the parish. Despite the varying opinions, the most considerable debate surrounds the multi-million dollar price tag for the 19-court facility.
Commissioner John-Paul Young clarified that if the project does not generate enough money to pay back the debt, there is extra money in some accounts that can be used. He said this is often the route toll roads take.
It is unclear whether taxpayer funds could be used if enough revenue is not generated.
There are a few different kinds of municipal debt, such as revenue bonds and general obligation bonds, to name a few. Research shows that revenue bonds are generally less secure than a general obligation bond due to the difference in the payback method. However, both serve a purpose and are used for different projects.
General obligation bonds are paid back with any tax means necessary, including taxpayer funds. The general obligation bond relies on tax revenues, while the revenue bond relies on specifically generated revenue from the source it is tied to.
“Revenue bonds are payable from identified sources of revenue and do not permit the bondholders to compel taxation or legislative appropriation of funds not pledged for payment of debt services,” said the Municipal Securities Rulemaking Board housed in Washington, D.C.
Both the administration and commission clarified that these allocated funds, which would be issued from the bonds, are not available for other projects that involve roads or criminal justice.
