Submitted to the St. Bernard Parish Council:
Wayne Landry, Frank Auderer, Ray Lauga, George Cavignac, Kenny Henderson, Mike Ginart, Fred Everhardt on February 2, 2010

Released to the public February 2, 2010

2010 State of the Parish Report

The Saints are going to the Super Bowl, St. Bernard still has some of the best fishing in the world, Chalmette High School is again listed as a national best, Charlie's Diner bests the city restaurants in gumbo competition two years running, there are record numbers of children participating in recreational sports, St. Bernard still has the lowest crime rates in the metropolitan area, and we are still a community where God is invited to bless our work, our play, and our community. This is the real State of Our Parish. What follows is important information, but what continues to make St. Bernard- St. Bernard and what continues to have people fall in love with our community with even one short visit are the people. Our old friends and neighbors who returned have led us back to the "your mom and ‘dem" hospitality and deep rooted and genuine care about each other. While we modernize and rebuild to a better-than-ever state of being, it has been crucial that we have maintained our soul of a community. And we have. Different? Yes, in many ways. Tough decisions? Yes, every day. But in the midst of all that is going on and the multitude of challenges, we are St. Bernard and there is no other place that can be.

In just two short years, the pace and progress of the Recovery and Growth of St. Bernard Parish has made landmark impressions in the Gulf Coast region. Leading Recovery related activities in the region for two years in a row comes as a result of a vision and attitude that is based on partnering the resources of the local, state, and federal levels. It is now clear that as St. Bernard Parish Government enters its final leg of Recovery and remains in the midst of its Growth, the almost $1,000,000,000.00 of federal funding will be the foundation of a legacy for generations to come.

As our population growth continues to meander upward and now is estimated to be in the 42,000 range, awaiting the official census count in April of 2010, we have seen a great increase in the diversity within our community. While it is perceived that about 65% of the population is made up of St. Bernard residents who returned home, the other 35% of the population appears to be newly established residents. The ratio is likely to continue to shift over the next ten years as residents who were adolescents of Katrina find their opportunities to come home. The diversity shifts within St. Bernard Parish has drawn little attention although some policy issues and property management strategies have been painted as efforts to prohibit population diversity in our recovering community. The fact is that our housing market and the availability of affordable housing is that St. Bernard continues to have a full three years of available housing stock for owner occupied residential purchase, with many of those properties in the affordable homeowner range. Much attention has been placed on the availability of rental properties in St. Bernard Parish with the facts of available rental housing again being somewhat lost in unfounded data conclusions which paint a different reality to what actually exists. Vacant rental properties that are currently available as well as the planned rental units for senior housing and the tax credit sponsored units will continue to keep St. Bernard Parish as a community with an oversupply of housing, both single family owner occupied and rental properties.

Legislative interventions in partnership with the St. Bernard Parish Council are seeking to balance the clear concerns of the federal government's fair housing interests and the mission to avoid undercutting the entire economic recovery of St. Bernard Parish. The enacted rental legislation and blighted property legislation will remain a part of the discussions as negotiations and legal appeals remain priority activities in 2010. The housing market has stabilized in the sense that large scale investor buying has slowed significantly and the attention to the stabilizing the owner-occupied neighborhoods that are predominant in St. Bernard must include a new level of enforcement of housing codes across the board. The goal of this merged legislation will be to have no adverse effects of rental properties in owner-occupied neighborhoods. This will allow property owners who are committed to the real recovery and growth of our neighborhoods to actively participate and those who are absent to be penalized or removed. Additionally, the subsidized housing programs that are in place will include a marketing effort to convert eligible applicants to home ownership. Likewise, we will work to highlight the attraction of living in St. Bernard Parish as the Louisiana National Guard returns their troops to the Jackson Barracks. This anticipated influx can potentially be a very positive factor in assisting the wide variance in housing price fluctuations in the community.

Economically, St. Bernard Parish finished 2009 within a balanced budget with the assistance from a $5,000,000.00 community disaster loan. Despite a 2009 shortfall of nearly 20 percent in anticipated revenues, services and employment were maintained. The 2010 operational budget was passed as a balanced budget but done so at the cost of significant operational cuts across the board to departmental maintenance expenditures and sanitation costs. The $41,000,000.00 of operating revenues encompasses the basic level of services for the residents of St. Bernard Parish, including water and sewer operations. Over the last two years, we have made significant strides in keeping the bulk of our workforce at somewhat competitive levels. Positive wellness interventions and an exemplary limited usage of benefits by employees allowed St. Bernard to be an attractive medical coverage client. While we were successful in avoiding employment cuts for the start of the year, streamlining operations that may involve the elimination of after hour responses, bundling service calls, and putting management into the role of service delivery are likely parts of the plan to remain in budget. While our employee count is near 450 employees and payroll for 2010 is estimated at $16,400,000.00, we continue to strive to establish and maintain competitive salaries for our workers. Operational expenses are most clearly weighted in the area of personnel costs. Although parish government has not expanded its employee base, the service needs of the public has continued to remain steady. The economic growth of the community is essential to providing government office support as sought by the public. With the rejection of fire protection and sanitation fees by the public, it will become more and more of a necessity to reduce service lines to be consistent with operational revenues. The additions of several new business ventures within St. Bernard are being counted on to achieve a 5% increase in operational revenues for government services. Walmart, Lowes, and businesses at The Mall are all new economic engines for St. Bernard Parish as well as several new small businesses which have chosen to locate in St. Bernard. Every business counts and those that provide employment opportunities provide additional economic benefit to the community such as Allegiance Security, Associated Terminals, Chalmette Refining, Murphy Oil, Domino Sugar, and the Targa natural gas plant in Hopedale. Both small and large businesses also contribute through the property improvements that are realized in a business development. Working with the assessor to hold assessed values of business properties frozen for the first two years of operations is a goal to help incentivize business development. The large plant impact continues to be a significant component to the ad-valorem tax base, accounting for nearly 75% of ad-valorem revenues collected.

A concerted effort will continue into 2010 to have our residents and residents from neighboring areas spend their dollars in St. Bernard Parish. More must be done to link our businesses together as every dollar that is spent between businesses in St. Bernard can be turned over through payroll increases that are realized in the retail market. A new concept of economic development in St. Bernard will be released this year as well. For the first time in St. Bernard Parish, an educational and financial empowerment program will be offered to our residents and public employees. The concept is simple: if we can assist our public employees in learning how to have their current money make money for them, it becomes a win-win situation. As public employees are taught how to earn more, they win from an income level and if earning more money means spending more money in St. Bernard, the parish wins.

The local economy has largely enjoyed a buffer from many other parts of the country in terms of economic down-turns. This buffer has eroded during the last part of 2009 and as St. Bernard Parish releases some of its largest recovery projects in 2010, such as the Munster Wastewater Treatment Plant, road construction projects, and the hospital, it is hoped that there may be a renewal of the buffer factor again. Likewise, as the City of New Orleans makes significant headway in 2010 to increasing its recovery related work, it is hoped that St. Bernard contractors may bring some of those recovery dollars back to St. Bernard through employee payroll for our residents.

With a service area that is virtually no different than that of 2005, the reduced population and household count puts an incredible strain on the operational dollars needed to provide the basic services to keep St. Bernard growing. In a simple illustration; providing water service to a house on a street that once had 50 occupied homes on it may have cost $1,000.00. If that same house on a street that once had 50 occupied houses on it, now has 30 houses on it, that means that there are 20 fewer houses to share the cost of that service. So if 50 houses were sharing $1,000.00 cost it would mean that it cost $20.00 per house to bring service to the street. With only 30 houses, it cost $33.30 per house to bring service to the same street. What this means is it is costing more for parish operations to provide the same services when there is less revenue coming in. This calculation formula is true for almost every area of service provided by parish government. The absolute challenge for parish government is to continue to find other sources of revenue to support services, while at the same time finding ways to provide services in a more effective and efficient manner. In a basic equation, as services are funded, they are provided; as services are not funded, they are reduced or eliminated. The public's rejection of additional service related fees will mean newly streamlined service lines and the potential for fire protection service rotation.

Despite the millions of dollars that are allocated for recovery projects, none of those funds can be used for operational purposes. What this means for all of these new facilities, repairs, and improvements to our roads, playgrounds, buildings, fire stations, canals, and lift stations, is that FEMA does not cover costs or expenses related to the upkeep or maintenance of these projects. It is like receiving a new car as a gift because your car was wrecked, but not receiving any support to change the oil if you lose your income in the wreck. St. Bernard cant trade our recovery projects for operational expenses. Funds that come into St. Bernard Parish for the recovery projects are federal funds and are tracked very specifically. It is against the federal Stafford Act to use recovery project funds for parish government services. This obviously is the challenge that we face, albeit a welcomed one, to maintain these new facilities with fewer revenues anticipated over the next several years.

Also linked to our economic stability are the St. Bernard Port, the parish's recreation complexes, and our tourism market. While the St. Bernard Port is a separate political subdivision and parish government does not share revenues, the parish certainly benefits from ad valorem taxes from businesses located at the port and spin off business from employees and vendors related to port activity. The Hannan Recreation Complex and the Val Riess Sports Complex will add to potential revenue producing activities and serve as economic engines for St. Bernard Parish. These complexes will serve as a foundation to market the opportunity for a new hotel in St. Bernard Parish. In addition to revenues produced by an additional hotel, such a business opportunity further adds to the potential for visitors to stay in St. Bernard long enough to catch a glimpse of the rich history and culture of New Orleans' most historic neighbor.

As the residential population has grown and businesses have chosen St. Bernard as a viable site selection for start up or relocation, the issues of protection and sustainability continue to be raised. The work performed by the Army Corps of Engineers to this point has been significant and the fact that Katrina exposed the vulnerability that has been discussed for decades is now, unfortunately, undeniable. With repairs to the existing levee system and mandates to raise the levees to 100 year protection levels or above, a critical part of the protection system is finally underway. The Chalmette Loop is the Corps of Engineers name for the protection system that will protect St. Bernard Parish. The system basically is an elevated protection wall that will combine earthen levees with a concrete wall reinforced with metal sheet piles which will sit on top of the earthen levee. The height of the levee system will range from 28 to 32 feet and starts near the Paris Rd. bridge and follows the MRGO to Verrett, then the levee turns away from the MRGO toward the Mississippi River, crosses the Judge Perez extension highway and Bayou Rd. and then turns back up toward Caernarvon where it will cross the Caernarvon Canal near EBI, Inc. and Shallow Draft Boats, proceed into Plaquemines Parish through a portion of the Delacroix Corporation property, then cross St. Bernard Parkway before tying into the Mississippi River levee. Included in this Loop will be a newly built Bayou Dupre control structure and a newly built sector gate at Caernarvon. The Caernarvon gate will provide additional flood protection as well as a safe harbor environment for vessels. There will still be the challenge of removing silt that is brought in by storm surge activity, but the vessels will be safer in harbor. This federally funded project will run in the range of three billion dollars. There is a new approach being used that stretches the Corps' past practices in that private contractors have been brought in to review and adjust construction design. Having additional eyes on these most important projects are designed to challenge ideas and make modifications based on best engineering practices.

What is known and what has been shown is that levees alone will not provide the protection that is needed in any coastal community. Multiple lines of defense, including storm surge barriers, restoration of marsh, wetlands, and naturally occurring and enhanced cypress forests and other forestation, controlling saltwater intrusion, and the introduction of freshwater and sediment material through diversion projects and dredge and pump projects must be included in any discussion of immediate, intermediate, and long term plan discussions. Projects that are underway and on the drawing board include restoration of marsh through oyster reef development. While not a harvesting project, these reefs, placed appropriately can add significant acreage of marshland to our coastal communities, adding another layer of protection to the existing ecosystem. Bank stabilization projects are also in process to stop any additional land loss. Additional project efforts are underway to accelerate the reforestation of lost cypress forests through the wetlands assimilation program as part of the Central Wetlands focus. The Central Wetlands is an area that has garnered recent positive attention in Washington D.C. and special attention from the Chair of the Council on Environmental Equality, Nancy Sutley. This geographic region connects the area between the MRGO and the populated areas of St. Bernard and New Orleans to the Mississippi River. By connecting the discharge of nutrient rich effluent to the targeted areas primed for growth, another major layer of protection can be recreated. Funds through federal grants will allow this project to start and support of the Council on Environmental Quality can play an important role in finding additional funding to make the reforestation project a reality, thus creating a critical form of protection. Local efforts and partnerships with the state Department of Agriculture are also underway to do local planting of some 20,000 seedlings this year as part of the reforestation effort. Councilman Everhardt, in conjunction with the Parish's grants department have been successful in finding available funds to assist with this project and as the general public and visiting volunteers lend additional assistance, more trees will be planted.

Two major steps in the process to reverse what the MRGO created include the Bayou LaLoutre dam and the IHNC (Inner Harbor Navigational Canal) storm surge barrier. The dam structure has shown almost immediate results in reducing salinity in the channel on the upper side of the dam. While creating additional challenges for recreational and commercial fishing vessels, the dam is a necessary step in the restoration of our inland marshes and wetlands. There are ongoing discussions and reviews of options to alleviate some of the navigational challenges for boaters with the presence of the dam, but the historical fact cannot be denied that prior to the MRGO, navigational challenges naturally occurred as well. The Bayou LaLoutre dam is doing what is was intended to do: decrease saltwater intrusion and reduce land loss created by tidal and navigational activity.

Several miles up the channel, another piece of the protection puzzle is being constructed and has reached a significant milestone. Complimenting the levee work, the IHNC storm surge barrier, which will cost in the range of $1,200,000,000.00 - $1,800,000,000.00, provides a different level of protection as part of a larger system. It is clear that St. Bernard Parish serves as a coastal buffer to the City of New Orleans. The storm surge barrier is designed to slow the surge that occurs during storm activity that enters the channel from the gulf as well as through Lake Borgne. While the LaLoutre Dam will serve as a deterrent for normal tidal activity, it does not act to reduce storm surge above seven or eight feet. While we are continuing to gather information relative to the MRGO closure and the convenience that it played for commercial and recreational fishing in general, the move to bypass the channel with a cut in an adjacent canal still has some study to be done. We certainly do not want to reverse the benefits of the closure and other restoration activities. It must be remembered that prior to a storm reaching St. Bernard, there is generally tidal height elevations that stack water up against our levees and the Bayou LaLoutre Dam. What surge is pushed in during a storm rides on top of the water that is already stacked up against the dam or levees. The storm surge barrier is designed to control the water movement in the MRGO from the Gulf and Lake Borgne. The design is to mitigate the water surge into the IHNC. By itself, the storm surge barrier appears to cause concern for St. Bernard Parish. In the larger system and when coordinated with the Chalmette Loop levee system, the flood control structures at the Industrial Canal and Lake Pontchartrain actually assist in protecting upper St. Bernard from flooding from the New Orleans side of the MRGO and IHNC. As is clear, if the lower ninth ward receives water, it flows to Arabi and eventually Chalmette. The protective measures that the storm surge barrier will provide is beneficial as part of a larger system in conjunction with the levee protection project being in place. The coordination of the levee system and the IHNC storm surge barrier project is a constant source of discussion and assurances have been put in place to coordinate the timing of this construction.

The critical nature of the hurricane protection system and coastal restoration projects are not only tied to the assurances for residents and business in their investment in the rebuilding of St. Bernard Parish, but also to the $1,000,000,000.00 of facilities and building improvements. Currently, the recovery effort has seen improvements in every area of the parish's redevelopment. Some of the highlights of the recovery activity to date include two newly built state-of-the-art fire stations which compliment three repaired fire stations with the remaining five stations scheduled for completion by Summer 2010. Two newly built gymnasiums were completed at Cypress Gardens (Joe Davies School) and Gauthier (J.F. Gauthier School) and two repaired gymnasiums at Paul Noel (School Board Office) and Sammy Frichter (St. Claude Heights). These facilities compliment a renovated Kenilworth Park and its four baseball fields adding to the recreational resources available to the youth and adults of our parish. Paul Noel also serves as the home to Fuel, the parish government sponsored youth group and the Youth Advisory Council. A partnership with the Archdiocese of New Orleans has resulted in the completion of three new football fields which convert to house as many as seven soccer fields. The Hannan Complex is highlighted by a new concession and restroom facility and Karate training facility. Improvements have begun on the main stadium field, sand volleyball courts, and lights for 2010. The Val Riess Complex-Phase I became a reality and has set a new standard of excellence in recreational facilities in St. Bernard Parish. With the complimentary Phase II scheduled for completion and use for the summer of 2010, and the completion of a $10,000,000.00 multi-purpose/convention center building planned for 2011, the Val Riess Complex will serve as an economic engine for the parish and another reason for St. Bernard Parish to shine in the New Orleans metropolitan area and the Gulf Coast region. The anticipated completion of this project has stirred interest in two hotel franchises to locate within St. Bernard Parish, one of which has financing in place to complete a new hotel for St. Bernard Parish.

The Parish Government Complex building was completed and houses an updated and modernized operational scheme. An increased focus on Information Technology and computerized services continues to improve services both internally and externally. Improvements to the adjacent grounds of the complex started and several improvements at Torres Park were completed, including the newly laid jogging and walking path and restroom facility. The completion of 91 sewer lift stations sets in motion the opportunity to advance the parish wide sewer consolidation project that was let in 2009, the single largest construction project in St. Bernard's history, and will take approximately two years to complete taking us into 2011. Other utility related activities included the rehabilitation of the parish water towers throughout our community and the administration building for both the Water and Sewer Division and the Office of Public Works. Some $65,000,000.00 of road repair work was let, encompassing over 20 miles of interior parish owned streets as well as hundreds of thousands of related street drainage lines. These improvements allow the 18 parish operated drainage pump stations, also completed in 2009, to function at full capacity. The partnership with the Federal Highway Administration and State Department of Transportation and Development also prompted the letting of construction work to complete rehabilitating Patricia Street, Jean Lafitte Parkway, and large sections of Judge Perez Dr. and related drainage basins. The completion of the Los Islenos Food Court Pavillions offered a glimpse to the exciting revamped Islenos complex, including the Ducros Library and Museum, multi-purpose building and several other structures on the grounds. The 2010 Islenos Fiesta will be held within the confines of a beautiful new complex, with a hint of several additional improvements coming by the summer of 2010. The partnership with the school system will see a new public library building in the Chalmette High School expansion, creating modern, technologically advanced interaction service to the public. The St. Bernard Parish Historical Courthouse in Chalmette and the Old Beauregard Courthouse will both see renovations this year.

2010 will be a year to remember in terms of the completion of so many of the projects that have been part of the Recovery and Growth plan for St. Bernard Parish. We, however, must continue to remain focused on two main objectives through the course of this year: we must maintain a sense of urgency in getting to the work that remains to be done and we must look beyond our Recovery and develop our sense of Growth. Regionally, we stand as an important piece to the transition in the metropolitan leadership relations. With Jefferson, Orleans, and St. Tammany all electing new leadership in the near future, the regional approach that has helped keep St. Bernard at some of the tables of discussions must be maintained. Regional leadership in Recovery efforts and experience count for an enormous amount of credibility in dealings with FEMA, GOHSEP, and the bureaucracy at the state and federal levels. As we have done in the Gulf Coast region, St. Bernard understands that as our metropolitan neighbors succeed, so do we. As an administration with senior membership, we will lend our support to assist our neighbors in their Recovery activities.

There will be a continued close partnership with the active citizen base, business leadership, church groups, and civic organizations within St. Bernard Parish. These support organizations have been and remain critically important to the achievements within the Growth structure of our parish. Perhaps more than any other time in our history, the activity of our citizens has been at the forefront of almost every successful venture during the recovery. Our ability to continue to reach out to all residents and incorporate their commitment to St. Bernard Parish is vital in educating the public, receiving feedback and input, protecting our community values, standards, and rich cultural history. Equally important to the citizen involvement is the mentoring of our new neighbors so that our sense of a St. Bernard family is maintained during our Growth.

Areas of continued work include seeing the parish hospital project actually get off the ground. Land acquisition negotiations and access issues continue to be at the forefront of obstacles to seeing construction starting. The Hospital Service District has achieved design plans of the hospital but without nailing down a site selection, construction cannot begin. Financing of the project is largely in place, with $41,000,000.00 of Community Development Block Grant funds being shifted from parish government projects to the hospital project as well as over 80% of the parish's New Market Tax Credit allocations being reserved for the hospital project. We stand at a critical point in the movement of the hospital project. Short of the start of actual construction, public confidence and buy-in, which is as an integral part of this project, seems to be waning. It is feared that if it is much longer before we see actual construction on this project that we may begin to lose this vital piece of support to the project.

Administratively, an operational challenge to managing over 1,000 privately owned properties continues to be a costly venture for parish government. The implementation of a pro-active spray program will be used to better maintain the aggressive growth season of these properties. With less than 200 properties that were under construction but did not complete minimal construction activities and now falling into a demolition category, along with the slab removal project, the clean-up activity is finally into its final stretch. The commercial demolition project has also gotten back on track with less than 100 commercial properties remaining and coming down by the end of summer 2010.

The complimentary Lot Next Door program has reached a reality with notices to several thousand eligible residents and transfers set to begin in March. Despite several false starts and continued modifications to administrative procedures, the program is set. With an anticipated 1,500 to 2,000 transfers lining up for the Lot Next Door program, a substantial number of properties will be combined to existing lots. This will leave the next phase of these vacant Louisiana Land Trust properties in line for redevelopment. Redevelopment strategies are under review to appropriately add value to existing neighborhoods and businesses through the use of these properties over a long term redevelopment period. Pocket parks, public parking, business buffers, flood and drainage improvements are all part of the strategies being discussed.

Overall, 2009 was a successful year in many aspects both from recovery as well as operationally and 2010 holds equal promise. Some of the team making things happen are our employees, parish council, contractors, FEMA, GOHSEP, and state and federal delegates, and other bureaucratic agencies including the Army Corps of Engineers, Department of Natural Resources, HUD, Louisiana Recovery Authority, Louisiana Land Trust, and a host of our local partners such as the Planning Commission, the Board of Zoning Adjustments, the Hospital Service District, the Housing, Redevelopment, and Quality of Life Commission, the Coastal Zone Advisory Committee, the Library Board of Control, the Parks and Parkways Commission, and the Celebrate St. Bernard Committee. Other agencies are certainly important players and are not mentioned specifically due only to brevity.

The overall success of St. Bernard's Recovery and Growth cannot be seen without the recognition of our Partners in the St. Bernard Parish Public School System, The St. Bernard Parish Sheriff's Department, The 34th Judicial District, The St. Bernard Parish District Attorney's Office, Lake Borgne Basin Levee District and the Southeast Levee Protection District, and the Port of St. Bernard. These partner organizations and agencies have made enormous progress and significantly impact the positive movement in St. Bernard as a whole.

As always, questions, suggestions, ideas, and just getting involved is welcomed. Please feel free to contact the Office of the President at 278-4227.

Respectfully,

Craig P. Taffaro, Jr.
St. Bernard Parish President