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Kenneth Boudreaux

Robideaux’s second attempt at transferring library funds collides with calls for new northside branch

The gist: On Tuesday, the council will take up the mayor-president’s renewed push to move $18 million out of the library’s fund balance to infrastructure needs. A transfer that large would likely prevent the addition of a new library east of the Evangeline Thruway.

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Get caught up, quickly: Earlier this year, Robideaux introduced a proposal to transfer $18 million of the library’s $26 million unassigned fund balance to roads, bridges and drainage. The council ultimately passed an amended ballot initiative, reducing the total to $10 million — $8 million for drainage and $2 million for parks and recreation. In an April email to council members, Robideaux took aim at furniture purchases for the library’s newest branch opening in Scott this month. Reprising attacks on the library’s financial management, he has asked the council to revise the transfer back to $18 million.

The library board voted to support a northside library Monday. At a special meeting, board members decided to request budget approval from the council to build a new library on the northside. The board will also ask the council to roll forward the two millages — keep the higher millage rate in place after assessed property values increase, essentially — that support the system to offset the revenues lost by a millage renewal that failed last year. In recent weeks, Councilman Kenneth Boudreaux has ramped up calls for a library east of the Evangeline Thruway. Boudreaux has lobbied to use $8 million to put a new library in his district, arguing that his community has been left without ready access to library services and is cut off from the Downtown branch by the Evangeline Thruway. In the last week, he’s pounced on library Director Teresa Elberson, saying she’s ignored his requests for more services for several years. The Scott branch, for reference, cost $7.4 million to build.

“If they’re not willing to take the money and immediately dedicate it to a library purpose for an area that needs it and for a people and a community that deserves it, I cannot support them continuing to sit on this money to do pie in the sky projects,” Boudreaux said Sunday on his Community Hour radio show. “Build the damn library.”

As it stands, the library can afford to build a new library. The library currently has $26 million in unassigned fund balance. If the amended resolution stays the same and gets approved by the public, the library will still have $16 million remaining. The library also has about $18 million in bond authority that it could use with the council’s approval.

But it’s unclear if the library will be able to afford to operate the new library. Next year the library’s revenue is projected to be approximately $2 million less than this year’s budgeted expenses, and that’s without the added cost of operating a new library on the Northside. The library’s board developed four scenarios about the future of the library’s
finances, the best of which still projects the library’s fund balance going negative in seven years.

If Robideaux gets his way, there likely won’t be a northside library. If the $18 million he wants is moved, the library won’t have enough cash to pay for the proposed library. The library still has about $18 million in bond capacity left on $40 million authorized in 2002. Selling those bonds would increase the dedicated millage collected to pay back the debt. So even if technically the library has bonds to sell, it’s not clear if there’s enough political will on the council to approve their sale.

So how does this play out from here? Council members could be swayed by Robideaux’s call to change the rededication from $10 million to $18 million. They could also change that dollar amount to something else, or alter where that money will be moved to. Or they could stick with the existing plan and leave the proposition as is.

What to watch for: First, what happens Tuesday night. Second, what happens during the budget process as it relates to council support for funding of a northside library and allowing the library to roll forward its millages. Third, what happens if some version of Robideaux’s proposal makes it to voters this fall. And fourth, what happens during next year’s property assessment; any decline would have a major impact on the library’s revenue and financial health.

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Answers on Bruno loan will be slow coming

The gist: The City-Parish Council unanimously supported a resolution Tuesday by councilmen Jay Castille and Kenneth Boudreaux asking that the body be kept abreast of federal and state investigations into a suspect 2016 loan to one of the Mayor-President Joel Robideaux’s assistants. But it’s unlikely the council will be hearing anything any time soon.

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LUS rate reduction and refund shelved

The gist: The LPUA deferred indefinitely a pair of proposals to reduce utility rates and return money raised for a $240 million bond sale that never happened.

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Some background. Rates were raised 8 percent beginning in 2016 with a $240 million bond issuance in mind. That package included a controversial power plant, and after some pushback, the bond ask was reduced to $70 million in February 2018. At the last minute — literally the day of the bond commission meeting in April — Robideaux pulled the $70 million bond request, orphaning the rates. That was days before he signed a letter of intent with NextGEN Utility Systems to consider privatizing manage of LUS. Settling the issue was delayed during the ensuing controversy.

LUS says the money has been put to good use. In a bond scenario, the money raised would go to pay the interest on the bond. Since there’s no bond, LUS has essentially used the money on a pay-as-you-go basis, moving forward on projects included in the $70 million package. Some major projects include $48 million for electric system upgrades and $41 million in sewer treatment work. Interim LUS Director Jeff Stewart tells me about $15 million was diverted to those work orders.

“The last thing I want to do is scale back a rate and then come back to raise the rate to meet unexpected needs,” Councilman Bruce Conque says.

Word is bond. Councilman Kenneth Boudreaux, who authored the ordinances, argues that good use doesn’t matter. The money was raised for bonds, and the ratepayers should expect that the money be used for that purpose. “I personally believe we have misled the people, and we’re gaining from it,” he said at the council meeting Tuesday night.

LUS disconnects 1,900 customers each month for delinquent payment. Boudreaux brought that figure forward to warn that even a small rate increase can have dramatic effects on low-income families.

“We boast about how good our rates are, but we still have a large population that struggles to pay those rates each month,” Boudreaux tells me.

What to watch for: If and when a bond is ultimately issued. The administration intends to go forward with a $70 million bond sale, now that the NextGEN episode is over. With cash in hand, LUS can continue ongoing projects but can’t necessarily complete them without the added capital.

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In making no statement on Drag Queen Story Time, the council sent a mixed message

In drafting the non-binding resolution on Drag Queen Story Time, William Theriot and Jared Bellard’s apparent intent was nakedly cynical: trap councilmen on a wedge issue as fodder for future politicking.

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How can you trust a convoluted government?

Seventy percent of Americans continue to trust their local government, a level that has held relatively steady for over four decades and across party lines.

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