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Abita Springs clears way for $3.75 million sewer loan to fix aging system
Summary
The Abita Springs Board of Aldermen adopted a resolution confirming a public hearing and authorizing officials to prepare documents for a sewer loan of up to $3.75 million from the state DEEQ revolving fund; officials said the loan carries roughly 0.95% combined interest and fees. No petitions were filed.
The Abita Springs Board of Aldermen on Feb. 24 adopted a resolution finding that a public hearing had been held and that no petition was filed objecting to the town’s proposed taxable sewer revenue bonds of up to $3,750,000. The action authorizes town officials to proceed with preparing the documents needed to secure the financing.
Council opened the hearing to allow objections or petitions and received public comment that the town should pursue the most advantageous financing. Officials explained the project would use the Louisiana Department of Environmental Quality (DEEQ) state revolving loan fund rather than a higher-rate municipal bond. Staff described the DEEQ financing as having about 0.45% interest plus roughly 0.50% administrative fees — a combined figure the meeting recorded at about 0.95% — and noted the loan must still be presented to the bond commission.
Speakers and members emphasized the town’s need to act, saying the sewer system is roughly 70 years old and showing signs of failure that warrant major repairs or replacement. A council member and several residents urged the town to pursue the low-cost state loan and to continue seeking capital-outlay grants to reduce any required local repayment.
After public comment, a member moved to close the hearing. The council moved the resolution forward, conducted a roll-call/voice vote and the measure was adopted with no recorded opposition in the transcript.
Next steps: staff are authorized to prepare bond documents and to continue pursuing whichever blend of DEEQ loans and capital-outlay grants minimizes local cost. A formal ordinance implementing the bond terms will follow the town’s required advertising and adoption process.
