Bond commission approves $4 million cash-flow loan for St. Landry Parish after added oversight

The State Bond Commission on Sept. 18 approved a request by St. Landry Parish for up to $4,000,000 in revenue anticipation notes to cover operating expenses, contingent on the commission’s receipt of a certified ordinance adopted by the parish council and a monthly report to the legislative auditor.

The loan request, reduced from an earlier $4,600,000 figure, was presented to the commission with revised cash-flow projections and audits staff said were reviewed by the parish’s CPA and bond commission staff. Commission staff recommended approval after the parish provided updated projections that they said showed a “substantially balanced general fund budget for fiscal year ’26 without the inclusion of the $3,300,000 next-era pilot payments.” The staff recommendation was conditioned on receipt of the certified ordinance adopted the night before the meeting.

Why it matters: Commission staff warned the parish’s operating reserves have been depleted and that, without borrowing, the parish “may be unable to continue operations and repay the prior year loan.” The loan would provide short-term cash flow while the parish implements revenue and expenditure changes it says will restore structural balance.

Commission and staff descriptions of the parish’s plan said the parish submitted an amended FY25 budget and a projected FY26 budget and added contingency measures should planned pilot payments fail to materialize. Those contingencies included reallocating racino revenues — which itself requires a separate parish ordinance — and additional layoffs that “could impact operations in public services.” Staff also noted some transfers from other funds and about $236,000 in reduced expenditures in the revised projections.

During public comment, Harold Taylor, who identified himself as “a lifelong member of St. Landry Parish, former mayor, businessman … and today I serve as a parish councilman and chairman of the parish finance committee,” criticized the parish president’s handling of finances and said council members lacked timely access to documents. Taylor said the administration had “floated unreliable solutions, such as opioid settlement payments … and solar panel project payments that have been repeatedly delayed,” and urged the commission to authorize a larger, one-time loan with independent oversight. “I propose St. Landau Pass government be authorized to borrow the full amount necessary estimated at 4,600,000.0 according to the ordinance to restore solvency,” he told commissioners.

Parish President Jesse Ballard told the commission he has agreed to work with the legislative auditor, saying the auditor “is gonna be involved in our closing of the books on the parish government” and that the auditor will receive monthly closing documents. Ballard said, “they're gonna get every document … review our cash flow on a monthly basis.” When asked whether the legislative auditor could require spending changes, Ballard said the parish would comply with recommendations: “So whatever they go recommend to make this work … we're gonna be working hand in hand with the legislative auditor's office on this issue.”

Commissioner Speaker de Villier moved approval of item 46 and stipulated — with parties’ agreement — that a monthly report be submitted to the legislative auditor as part of the motion. President Henry seconded the motion. There were no objections and the motion was approved.

The commission’s staff memorandum noted the loan’s maturity was reduced to 12 months and that the parish’s plan to regain positive cash flow had earlier been considered dependent on private development decisions; staff said the revised projections, CPA review and the certified ordinance supported a recommendation for approval. Staff also warned they could not “attest to the accuracy or ability of the parish to perform” if projected revenues do not materialize and that worst-case the full prior loan could be renewed.

The commission’s approval directs the treasurer and staff to complete the technical loan paperwork once the certified ordinance and required documentation are received.