Council approves up to $4.5 million DEQ sewer revenue bond; staff outlines loan forgiveness and low interest
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Summary
The New Iberia City Council approved an ordinance and a companion resolution allowing issuance of up to $4.5 million in taxable DEQ sewer revenue bonds. City staff said roughly $500,000 of the package is expected to be forgiven and the all-in interest rate is about 0.95%.
The New Iberia City Council voted to authorize issuance of taxable sewer revenue bonds not to exceed $4,500,000 and adopted a resolution finding that no petition was filed to require a reverse referendum.
Jason Acres, introduced by the mayor to explain the financing, said the package includes a forgiveness portion of "roughly 500,000" that would not have to be repaid or bear interest. He described the loan as a low-cost option, saying funds are advanced as needed, the all-in interest rate is about "0.95%" (a 0.45% base plus a 0.5% administrative fee), there is a roughly two-year interest-only period and a maximum term of 22 years with 20 years of amortization.
Mayor (chairing the meeting) and multiple council members asked technical questions about which sewer lines and neighborhoods the project would relieve. City staff said the work will reroute flow and add capacity to reduce pressure on older feeder lines that cross the bayou and serve Acadian Acres, Hilltop Circle, Peoria Street and Highland; the project is intended to alleviate chronic flooding and capacity constraints in those areas.
The council also approved Resolution 20 632, which staff described as the required memorialization that no certified petitions were presented objecting to issuance of the debt. Counsel and staff explained the statutory reverse-referendum process: the city must publish notice of intent, allow time for certified petitions to be filed and, if petitions are valid, submit the issuance to voters. Staff said the notice had been published and no petitions were presented at the meeting.
The council called for a vote by electronic machine; the ordinance and resolution were moved, seconded and approved (no roll-call tallies were published in the transcript).
What happens next: staff said they are seeking state bond commission approval, expected later in March, and will move to closing once bond commission approval and final plans and specifications are complete.