Parish Approved For $4 Million
BOBBY ARDOIN
St. Landry Now.com
The Louisiana State Bond Commission approved on Thursday morning, a St. Landry Parish government request for borrowing $4 million in order to continue paying state mandated and operational expenses.
Parish president Jessie Bellard, who appeared behind the Bond Commission for a second straight month, said the parish has agreed to repay during the next 13 months the loan obtained from local banks, providing the parish is not faced with extensive state required expenses.
Commission members delayed an August request from Bellard to obtain $4.6 million.
The current agreement with the Commission, Bellard said, also includes parish financial oversight from the Office of The State Legislative Auditor’s Office.
On Wednesday the Parish Council approved an ordinance by a 7-5 vote that allowed Bellard to appear before the Commission and request to borrow up to $4.6 million.
“I’m very pleased with the outcome. The state auditor has people who can come in here on a monthly basis and help us look at our finances and guide us. The Bond Commission felt that we’ve met the criteria for our request and they are letting us make the calls. The people in the parish have nothing to be scared of and nothing to be afraid of,” Bellard said following the decision by the Commission.
Bellard pointed out that the parish has recently employed a certified public accountant.
The Council ordinance approved on Wednesday night indicates the loan is being used to pay current parish expenses during the term of the note in addition to paying the costs associated with the issuance of the note.
Additionally the principal of the note which will be issued in installments, the ordinance says, is subject for repayment including interest, at any time, either in whole or in part at the option of the parish.
Finance Chairman Harold Taylor, who spoke at the Bond Commission hearing last month and again on Thursday, suggested that the Commission approve a one-time $4.6 million loan spread over 10 years, in order to help with parish with finances.
During a Thursday afternoon interview, Taylor said he also recommended that state officials assign an auditor that will provide “independent oversight” and advise the parish on a repayment structure and financial solutions.
According to Taylor, he also requested that state auditors provide the parish with a financial plan that includes making any necessary budget cuts that ensure the parish operates with an annual balanced budget.
Taylor also proposed requiring the parish to adopt a fiscal model similar to 2020 when the Council hired certified public accountant Amanda Cain to oversee and balance the parish budget.
If the parish cannot operate without incurring a financial deficit, Taylor said, then the state should adopt a plan where a state appoints an auditor to run the parish.
Taylor questioned on Wednesday night whether a NextEra solar farm project, scheduled for the western portions of St. Landry, would provide sufficient revenues to assist with paying off the $4 million.
Potential revenues from an opioid settlement are already dedicated towards assisting the medical industry and are also what Taylor called an “unreliable” financial revenue source, Taylor added.
Bellard told the Council on Wednesday night that if needed, he has the authority to use video poker and racino revenues to offset operational expenses if the NextEra project fails to provide sufficient revenues .
It might also be necessary, Bellard told the Council, to temporarily curtail some parish-provided services that are not mandated by the state in order to continue operating.
Paying expenses associated with the parish jail, another state requirement Bellard said, could cost the parish as much as $1.8 million this year.
