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Council gives preliminary approval to seek $1.5 million DEQ bonds for sewer projects, with up to $1M forgiveness
Summary
The St. Tammany Parish Council gave preliminary approval to seek up to $1.5 million in DEQ revenue bonds for sewer projects, with bond counsel saying roughly two-thirds of each draw is expected to be forgiven; council members said the funding would support a west-side dumping station and engineering work in neighborhoods with untreated sewage issues.
The St. Tammany Parish Council voted unanimously March 12, 2026, to give preliminary approval to Resolution C-7273, authorizing the parish to pursue issuance of up to $1.5 million in taxable revenue bonds through the state Department of Environmental Quality (DEQ) for sewer-related projects.
Bond counsel and parish staff told the council the preliminary approval simply authorizes application to DEQ and does not commit the parish to borrow; final loan documents and an ordinance will return for formal introduction and approval. Jason Acres, bond counsel, explained the forgiveness structure described in DEQ’s preliminary letter: "They do two letters. First is the preliminary letter that says it will be a principal forgiveness of up to this amount ... the loan agreement will be written so that two-thirds of every loan advance is forgiven." Acres said if the parish draws the full $1.5 million, the forgiveness could total approximately $1 million under that formula.
Council members said the project would fund two broad efforts: construction of a permitted dumping station on the west side of the parish to keep septic and vacuum-truck operators from hauling waste out of parish boundaries, and preliminary engineering/environmental work to evaluate central-sewer solutions in three neighborhoods that experience undertreated or untreated sewage. Councilman Corbin summarized the local benefits as creating local capacity and launching targeted projects where septic systems are failing.
Next steps: the preliminary resolution authorizes application to the state bond commission and DEQ. If the parish pursues the loan, an ordinance and final loan terms will return to the council for introduction and approval; staff indicated there are existing franchise-fee revenue sources planned to service any amount not forgiven.
Quotes from the meeting and context are based on council discussion and bond counsel commentary; the council’s unanimous preliminary vote does not itself create indebtedness — any borrowing will require later council action in ordinance form.
