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Council moves to begin DEQ loan process for sewer work; lawyer says $4.5M available with partial forgiveness

City of New Iberia City Council · December 17, 2025

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Summary

The council considered Resolution 25161 to start a DEQ sewer revenue bond loan process for up to $4.5 million, with about $500,000 potentially forgiven and a 22-year term at roughly 0.95% interest; the city attorney's firm will apply to the state bond commission on the city's behalf.

The council considered Resolution 25161, declaring the mayor and council’s intention to issue sewer revenue bonds through the Louisiana DEQ in an amount not to exceed $4.5 million.

Andrew Jower of Foley and Udell presented the financing parameters: a maximum loan amount of $4.5 million, roughly $500,000 of which would be forgiven (not required to be repaid), a 22-year amortization and an interest rate of approximately 0.95 percent. Jower said the resolution authorizes the firm to apply to the state bond commission and employs professionals to assist through the transaction.

Council members asked about timing. Jower said the city would adopt final documentation in March and that work would begin after the engineer submits the first request for payment. City officials stressed that the loan is intended to address aging sewer infrastructure and that it is an alternative to raising sewer user fees.

The council moved the resolution and proceeded to a vote. The transcript records the presentation and the motion but does not publish a detailed vote tally in the supplied record.

Why it matters: the loan would support needed sewer upgrades while limiting rate increases; using low-interest DEQ financing with partial forgiveness reduces long-term costs for ratepayers and the city.