Bogalusa Council

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Proposal would extend quarter-cent tax, fund $5M in bonds for infrastructure improvements

ALEX MORASKI

THE DAILY NEWS 

The Bogalusa City Council has adopted Ordinance No. 3051, which proposes the renewal of a quarter-cent sales and use tax and authorizes the issuance of up to $5 million in bonds to fund critical infrastructure improvements.

The ordinance, passed unanimously during the council’s June 4 meeting, calls for a special election to be held Saturday, Nov. 5, 2025. Voters will be asked to renew the existing 0.25% sales tax for 20 years, beginning April 1, 2026, and to allow the city to issue bonds backed by the tax revenue to finance citywide street and infrastructure projects.

If approved, the measure would extend the current tax—first approved by voters in 2005—until March 31, 2046. According to the ordinance, the tax revenue would be dedicated solely to the costs associated with constructing, improving, maintaining, and repairing streets, roads, drainage, utilities, sidewalks, and other public infrastructure within the city limits.

The ordinance also authorizes the city to issue bonds in one or more series, not exceeding $5 million in total principal, with an interest rate not exceeding 6% per annum and a final maturity of no more than 20 years. The city plans to use proceeds from the renewed tax to repay the bonds.

The measure outlines the establishment of a Sales Tax Fund, which will receive all revenue generated by the renewed tax. The fund will be used first to pay bond debt service and related costs. Any remaining balance may be used for additional capital improvements or to retire the bond early.

The city has retained Foley & Judell LLP of New Orleans as bond counsel to advise on the issuance and compliance process. The bonds cannot be sold until the Louisiana State Bond Commission grants final approval.

If voters reject the proposition, the quarter-cent tax will expire on March 31, 2026, leaving the city without a dedicated funding source for future street and infrastructure projects.