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FOR IMMEDIATE NEWS RELEASE NEWS RELEASE #025 FROM: CLERK OF SUPREME COURT OF LOUISIANA

The Opinions handed down on the 5th day of May, 2009, are as follows:

BY KIMBALL, C.J.:

2008-C -1392

LOCAL NUMBER 1442, PROFESSIONAL FIREFIGHTER'S ASSOCIATION, ET AL. v. CITY OF CROWLEY (Parish of Acadia) For the reasons assigned, judgment is rendered in favor of plaintiffs and against the City on plaintiffs= petition for declaratory judgment. Accordingly, it is ordered, adjudged and decreed that there be judgment declaring that the City must use the 33 1/3 % of the sales tax proceeds at issue only for salary increases for fire personnel as interpreted herein and for no other purpose. The judgment of the court of appeal affirming the trial court=s judgment dismissing plaintiffs= petition for declaratory judgment is reversed. REVERSED. WEIMER, J., dissents and assigns reasons. GUIDRY, J., concurs in part, dissents reasons.

in

part,

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assigns

05/05/09

SUPREME COURT OF LOUISIANA

No. 2008-C-1392

LOCAL NUMBER 1442, PROFESSIONAL FIREFIGHTER'S ASSOCIATION, ET AL. v. CITY OF CROWLEY

ON WRIT OF CERTIORARI TO THE COURT OF APPEAL, THIRD CIRCUIT, PARISH OF ACADIA

KIMBALL, Chief Justice The voters of the City of Crowley ("the City") approved a sales tax proposition authorizing the City to levy and collect a sales tax of one-half of one percent whose proceeds are to be used for the purpose of City employees' salary increase with 33 1/3 % to all fire personnel. Once an election is held wherein citizens approve a tax dedicated to one purpose, the tax proceeds cannot be used for any other purpose. The voters directed that the proceeds of the sales tax are to be used for salary increases for fire personnel. However, the City is using some of the proceeds for increases in pay that are not true salary increases, and for costs that are related to salary increases, but are obligations of the City rather than true salary increases. We find, therefore, the City is improperly using the tax proceeds when it uses them for promotional increases,

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overtime pay, holiday pay, and costs related to the increases, such as the City's contribution to the retirement system, FICA taxes, and the City's cost of insurance for workers' compensation and unemployment compensation. Facts and Procedural History On November 28, 1981, a special tax election was held in the City of Crowley wherein the voters approved a sales tax proposition authorizing the City to levy and collect a tax of one-half of one percent "upon 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 also chose that the proceeds of the additional tax be dedicated and "used for the purpose of City employees [sic] salary increase to be equally divided with . . . 33 1/3 % per cent to all Fire personnel . . . ."1 These tax propositions were renewed by the voters of the City in 1991 and 2001. It is undisputed that the sales tax proceeds have been used to fund increases above the base pay for fire personnel, including an across-the-board raise, promotional increases, and longevity increases, and costs related to the increases, including the City's contributions to the Firefighters' Retirement System, the City's FICA taxes, workers' compensation insurance premiums, and payment of unemployment compensation taxes. Additionally, the City funds overtime and holiday pay from the sales tax proceeds. On April 2, 2001, plaintiffs, Local Number 1442 of the Professional

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Specifically, the "1/3 PETITION," as it was identified on the proposition, provided: Shall the said sales and use tax be used for the purpose of City employees [sic] salary increase to be equally divided with 33 1/3% per cent to all City employees not otherwise covered herein, 33 1/3 % per cent to all Fire personnel, and 33 1/3 % per cent to all police personnel, all being full[-] time employees of the City to be paid from the proceeds of annual receipts of the revenues generated from the said one-half (

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