Shreveport mayor proposes 6% raises, cites data center revenue
Shreveport Mayor Tom Arceneaux has proposed a 6% pay increase for police and firefighters, stating that anticipated revenue from new economic development projects, including a planned West Shreveport data center by Stack Infrastructure and Amazon, will fund the raises. The city expects future property tax and electric franchise payments from the data center to provide recurring revenue for these increases. While the police union appreciates the base pay raise, it criticized the use of bonuses and retention incentives.
Shreveport Mayor Tom Arceneaux has put forth a proposal for a 6% pay hike for police officers and firefighters, framing it as a $6.9 million annual investment in public safety. Mayor Arceneaux informed the Shreveport City Council on Tuesday that the city plans to fund these increases, which aim to boost recruitment and retention, using future revenue generated from recent economic development projects without increasing taxes or fees.
The funding strategy relies significantly on anticipated future revenue from a forthcoming West Shreveport data center, which has yet to become operational. Stack Infrastructure and Amazon have announced their plans to proceed with a data center in this area. The city expects to collect substantial revenue from building permit fees, payments in lieu of sales taxes during construction, and increased sales tax collections, though some of these revenue streams are temporary. For sustainable, recurring funds to support the permanent pay raises, the city is banking on future property tax revenue from the data center and electric franchise payments once the facility is complete and operational.
While the Shreveport Police Officers Association welcomed the proposed 6% base pay raise, its President Michael E. Carter expressed criticism regarding the administration's reliance on bonuses and retention incentives. Carter argued that bonus systems for municipal employees have historically failed and can be eliminated during budget cuts without impacting base salaries. He also questioned the exclusion of sergeants and higher-ranking officers from the bonus structure, asserting that compensation changes should benefit the entire department's career path. Mayor Arceneaux maintained that the proposed increases are designed to address recruitment and retention effectively while ensuring a long-term, affordable compensation structure for the city.