NEW ORLEANS (WVUE) - A new report by our partners NOLA.com | The Times-Picayune says that a tax-funded agency is suing the city for improperly diverting nearly $400,000 to the state's pension fund.
The report claims that the Downtown Development District, an entity tasked with making improvements to downtown New Orleans, has filed a lawsuit to stop the city's tax allocation practices.
The group alleges that the city has been improperly using the agency's funds since 2014.
Judge Piper Griffin is expected to set a hearing on the injunction later this month or early next, according to court records, according to the report.
According to our partners, the district is asserting that the special tax revenues can only be used the district's activities, not for state pensions.
Spreadsheets attached to an affidavit filed by the district's finance and administration director -- and purportedly given by the city's finance department -- indicate a portion of special tax revenues have gone instead to state pensions for district attorneys, clerks, assessors, voter registrars and sheriff's offices, the article says.
In a response brief filed late last month, the city argues the district waited "a significant period of time" before seeking remedy last month, given the attorney general's opinion was handed down in 2007, according to the report.
The city said because of the lag time, the district's claims should be dismissed for the years of 2013, 2013, 2015 and 2016.
According to the report, the city also argues that Mayor LaToya Cantrell's administration should have a chance to reach a resolution with the district after her staff is up to speed on the tax allocation details.