Harlan Kirgan
For a second year the St. Landry Parish Council approved an ordinance allowing the government to borrow up to $1.5 million.
Parish President Bill Fontenot said he has learned much since taking the job six years ago.
The financing practice that had carried from over the police jury days included borrowing from one fund to another through the year.
“Government was borrowing money from itself,” he said, which created shortfall in funds.
“It is legal and passed audits,” he said The borrowing was legal as long as the money was repaid, he said.
“That’s an inefficient way of managing. It took me a couple of years to see that, but I didn’t actually bring this idea forward until this new council came on board,” he said.
The parish accounts are filled when taxes are received at the end of the year, he said.
The line of credit is like what farmers do to fund their operations until they sell their output, he said.
The parish receives about $4.9 million in property taxes, which are due by the end of year.
In 2013, rural St. Landry Parish voters approved a 2 percent, 15-year sales tax for road improvement. Tax collections began in 2014 and road work began in 2015.
The initial bond issue for the program was $66 million and by 2028, the end of the 15-year bond, about $75 million in work will be completed.
“It has been misinterpreted that we are borrowing because we are in a deficit. That is not so. We are, once our receivables come in, all our bills paid and we are still in the black,” he said.
After the Wednesday meeting, Amanda Cain, finance director, said parish government is continuing a plan to save $300,000 a year for five years to build a $1.5 million balance so the government won’t need the line of credit, which is financed through Washington State Bank.
Don Leger, of Oeplousas, who asked to Fontenot to clarify the $1.5 million credit line, added that, “I’ve seen property values double and triple in St. Landry Parish due primarily to road home.”
Leger was referring to the Smooth Ride Home Program that will pave about 300 miles of road by the end of this year.
The current project is paving 38 miles on 26 roads at a cost of $8.5 million, according to Fontenot.
But complaints about the roads that haven’t been paved continue to surface at Council meetings.
“There are still over 200 miles of gravel road that we have to deal with,” Fontenot said. “The Smooth Ride will pave those roads, but the Smooth Ride Home is a 15-year program. We have only been in it five. The citizens will have the opportunity to renew it in 10 years.”
Fontenot said he cannot provide a schedule of roads to be paved in the future.
Other Parish Council business included:
— Denying appeal from a business in the 100 block of Hackberry Street, Opelousas, on a notice it is violating the parish ‘s junk ordinance.
— Appointed Newton “Chip” Thibodeaux and Ronnie Clavier to the Hospital District 1 Board. And, approved advertising for another appointment.
— Approved an ethics training workshop on June 12.
— Denied a variance on two lots at the Cobblestone Subdivision in the Cankton area.
— Appointed Susan Fontenot to the South St. Landry Community Library District Board.
— Appointed Elmo Begnaud and Gregg Cormier to the Coule Crouche Fire Protection District 4 Board.
— Garrett Duplechain becoming legal counsel to the Parish Council.