By Stacey Tinsley, Bossier Press-Tribune
The Bossier City Council has taken a step toward preparing for future growth by approving the creation of a new fund that will capture a portion of sales tax revenue generated during construction of the Amazon data center.
Council members voted during their Tuesday meeting to establish an Infrastructure Capital Fund that will receive one-half percent of the city’s sales tax collections over the next five years, or until construction of the Amazon project is completed.
City leaders said the move is designed to ensure that some of the economic benefits associated with the major development are preserved for future community improvements rather than absorbed into day-to-day operations.
Although the majority of tax revenue connected to the project is expected to benefit Bossier Parish, city officials anticipate an increase in local sales tax collections as construction activity continues. The newly created fund will allow Bossier City to set aside a portion of that growth for long-term investments.
Bossier City Council President Chris Smith said the goal is to be proactive and maximize the impact of the additional revenue generated by the project.
“We don’t want to look back four or five years from now and say we squandered all the extra sales tax revenue that came in,” Smith said.
Based on current revenue projections, officials estimate the fund could receive approximately $285,000 annually, with that figure potentially increasing to around $350,000 per year as sales tax collections grow.
Over time, city leaders believe the fund could accumulate more than $2 million.
Officials said the money could be used to leverage grant opportunities, provide matching funds for state capital outlay projects or help pay for major infrastructure improvements without requiring the city to take on additional debt.
Potential projects could include road improvements, drainage work, park enhancements and other quality-of-life initiatives that benefit residents throughout the city.
The Infrastructure Capital Fund is scheduled to begin collecting revenue in January and is expected to serve as a financial tool to help Bossier City address future infrastructure needs while capitalizing on one of the largest economic development projects in the region’s history.