The State Bond Commission on July 17 approved two short-term financings to help the City of Bogalusa address cash-flow and sewer system needs, voting to authorize (1) revenue anticipation notes not to exceed $1,500,000 and (2) taxable sales-tax bonds not to exceed $1,750,000, with staff conditions and concurrence from the Department of Environmental Quality (DEQ).

The approvals came after multiple residents and local leaders urged the commission to delay or scrutinize the requests because Bogalusa is under fiscal administration and has not completed audits since Dec. 31, 2021. Commissioners approved the revenue anticipation notes (item 9) on a motion by Representative Johnson, seconded by Senator Meisel, and later approved the sales-tax bond (item 13) as part of a group motion covering items 11–14.

Why it matters: The financings are designed to keep the city operating and to fund emergency sewer repairs. DEQ issued a compliance order related to the sewer system on Dec. 7, 2024, and staff told the commission the DEQ has provided concurrence that the city demonstrates the capacity to meet the proposed debt-service requirements for the sales-tax transaction. Staff also recommended approval of the revenue anticipation note contingent on adoption and verification of the city’s FY2025 budget.

Public comments and local officials. Lee Kelly, a Washington Parish resident and former Bogalusa resident, told the commission she has been tracking Bogalusa finances for about 30 years and submitted a June 25 report prepared by the city’s fiscal administrator. Kelly said the report lists roughly $262,000 in American Rescue Plan Act (ARPA) spending on pump-related items and other sewer work and questioned procurement choices and the size of the $1.75 million request. “The request for $1,700,000 is pretty steep because a lot of the work has already been done,” Kelly said.

Melvin Abram, representing the Washington Parish NAACP, said residents want clarity about the legal and electoral steps that have occurred in Bogalusa and suggested the matter be taken up with the area’s legislative representative. “We want to secure the position of Bogalusa fiscally,” Abram said, and urged further explanation of petitions and court involvement outside the bond commission’s scope.

John Sanders, speaking as a City of Bogalusa official, said there were large unpaid obligations when the current local administration took office and that some grant and reimbursement funds have been restricted pending fiscal-administrator oversight. “The $4,300,000 was there when we got in office. But when we got in office, they had ... a matching portion of 33% you had to match that grant for,” Sanders said, describing why the municipality could not draw certain grants immediately.

Staff and commission response. Staff reported the city was placed under fiscal administration and a fiscal administrator was appointed on March 14, 2025; audits are incomplete for fiscal years 2022–24. For the sales-tax bonds (item 13) staff noted the financing will include a DEQ partial-forgiveness component (up to $350,000), project sources totaling roughly $2,250,000 (including about $500,000 from Capital Outlay), and an estimated annual debt service savings relative to the city’s current costs. Staff said the city is leasing two pumps this year at an anticipated cost of roughly $344,000 and that replacing antiquated screw pumps (which public commenters described as costly and sometimes ordered as early as 2017) is part of the stated need.

Actions and conditions. Representative Johnson moved approval of item 9 with the contingency noted by Ms. Folsz (staff), and Senator Meisel seconded; the motion carried with no objection recorded. Representative Johnson later moved approval of items 11–14 (which included item 13 for Bogalusa); Senator Mizell seconded and the commission approved the group motion with no objection. Staff-obligated contingencies include verification of the FY2025 budget for the revenue anticipation borrowing and DEQ concurrence for the sales-tax bonds’ debt-service capacity.

What was not resolved. Residents repeatedly asked for fuller documentation, amortization schedules, and a clear accounting of prior grants and ARPA spending; several commenters said audits and complete financial statements are still outstanding. Commissioners and staff said those operational and historical matters lie largely outside the bond commission’s technical review, and they encouraged off-line meetings with local legislators, the fiscal administrator and the legislative auditor to resolve outstanding questions.

Where it goes from here. The financings approved July 17 will proceed under the conditions noted by staff. Commissioners and staff invited further meetings between Bogalusa residents, area legislators and the fiscal administrator to walk through records and grant-history details outside the bond commission’s public agenda.