Livingston Parish Council authorizes application to State Bond Commission for up to $91.3 million in sales-tax revenue bonds

The Livingston Parish Council on Aug. 28 authorized parish consultants to apply to the Louisiana State Bond Commission for approval to issue sales-tax revenue bonds with not-to-exceed parameters of $91,292,000, clearing the way for a later ordinance and final votes if the parish proceeds.

The resolution, unanimously approved, directs the parish’s financial team to make the formal application and to engage bond counsel, an independent registered municipal adviser and underwriter/placement agents. Consultant Jim Ryan told the council the resolution does not obligate the parish to borrow; it establishes the “parameters” the bond commission requires for application.

Why it matters: Parish leaders said the financing would fund road and infrastructure projects the parish has prioritized after a multi-month infrastructure review. Ryan told the council that the commission requires conservative “not to exceed” numbers — for example, interest and borrowing assumptions run at an artificially high 7 percent to ensure the parish will be within the authorized box even in a stressed market. Using current market assumptions, Ryan said the actual par amount the parish would sell would be substantially lower than the not-to-exceed amount.

Ryan walked the council through the documents and two alternative sets of numbers. “Not-to-exceed is a term that the bond commission has come up with that means you have to draw this box and you have to live within this box and you can't go over any of the numbers,” Ryan said. He added that the “not‑to‑exceed” package assumes maximum contingencies and maximum interest so the parish can be confident it will remain inside the approved parameters even if market conditions change while documents are being prepared.

Using market conditions at the time of his presentation, Ryan said the realistic par amount likely to be sold would be in the mid‑$70 millions, with bond premium making the net proceeds larger (his example showed a par amount of about $74.95 million and a premium near $6.8 million, producing roughly $81.75 million in net funds). He described how premiums change the effective yield: “On the total bond issue, on average, you're gonna get about $8 more than the $100 for every $100 you borrow,” Ryan said.

Ryan also explained legal safeguards and investor expectations. He said sales-tax revenue bonds must meet a state-mandated coverage ratio (1.25 in his presentation) and that the parish’s projected coverage under current revenue estimates would be well above that minimum. Ryan said the expected rating agencies (Standard & Poor’s was named) could rate the bonds at an investment-grade level (he cited an expected “AA” range), which would lower borrowing cost.

Council members emphasized the projects that would be funded if the parish sells the bonds: road resurfacing and targeted new connector roads identified by the parish infrastructure committee, including a Jubin Road extension and other long‑planned routes intended to improve traffic flow and access to industrial areas. Council members and the parish president said proceeds would be applied to a mix of high‑traffic collector/arterial roads and prioritized projects already identified by the administration.

The council moved the bond matter forward on a motion by Councilman Billy Shavers and a second by Councilman John Goff; the resolution authorizes staff and consultants to apply to the State Bond Commission and to pursue rating, insurance and placement processes. Council members and Ryan emphasized that a future ordinance and final sale would return to the council for approval before any borrowing could occur.

Next steps: Ryan told the council the timeline would include an application to the State Bond Commission in mid‑September, an ordinance introduction to the parish council on Sept. 25, and an adoption vote on Oct. 9 if the parish elects to proceed. The resolution adopted Aug. 28 authorized the application only; it did not commit parish funds or complete any borrowing.

Ending: Parish officials said they will publish the bond parameters as required and return to the council for ordinance readings and final approvals before any bond sale is executed.