Getting your Trinity Audio player ready...

According to a public notice, the City of Bogalusa plans to issue up to $1.75 million in water and sewer revenue bonds to fund improvements to its sewer infrastructure.

The City Council adopted a resolution on April 15 declaring its intention to issue the bonds. The bonds will finance additions, extensions, and improvements to the sewer portion of the city’s combined drinking water treatment and sewage system. The funds will also cover related equipment, fixtures, and issuance costs.

The bonds will be limited to special revenue bonds, repaid exclusively through revenues generated by the water and sewer systems after deducting reasonable operating and maintenance expenses. They will not constitute the city’s general obligation and will not be backed by its full faith and credit. Revenue from the water system will also remain pledged to the city’s existing Water Revenue Bonds, Series 2009A and 2009B, maturing in 2030.

Authorized under Louisiana Revised Statutes and related legal authority, the bonds may be issued in one or more series. They would mature in up to 22 years, carry an interest rate not exceeding 0.95 percent annually, and could be prepaid at any time without penalty. A portion of the proceeds will also cover issuance costs.

The bonds are expected to be sold privately to the Louisiana Department of Environmental Quality’s Clean Water State Revolving Fund, subject to approval by the State Bond Commission.

A public hearing on the proposed bond issuance is scheduled for 5:30 p.m. Tuesday, May 20, at Bogalusa City Hall. Suppose a petition opposing the issuance, signed by at least 5% of voters from the city’s last election, is filed and certified by the Washington Parish Registrar of Voters. In that case, the matter must be decided by a public vote.

Water System Grades

The bond proposal follows three consecutive years of B and C grades for the Bogalusa Water System, as evaluated by the Louisiana Department of Health:

• 2024: Grade B, score 80%. Points were deducted for state water quality (-5), financial sustainability (-5), and customer satisfaction (-10) due to verified complaints.

• 2023: Grade B, score 80%. Similar deductions occurred for financial sustainability (-10) and customer satisfaction (-10).

• 2022: Grade C, score 75%.Dedication included financial sustainability (-10), customer satisfaction (-10), and secondary contaminants (-5).