Thursday, July 18, 2024

Louisiana State Bond Commission Approves Funding for Statewide Projects

by BIZ Magazine

Baton Rouge, LA – On June 20, the Louisiana State Bond Commission greenlit funding for a range of critical projects across the state, as announced by Louisiana State Treasurer John Fleming, M.D. “This funding will address critical needs in parishes throughout our state,” stated Fleming.

The approved projects include:

  • Town of Duson, Acadia and Lafayette Parishes: $1.2 million in Sales Tax Revenue Bonds for the improvement and construction of sewerage and water treatment facilities.
  • City of Mansfield, DeSoto Parish: $2.75 million in Sales Tax Bonds for water system enhancements.
  • Savoy Medical Center, Evangeline Parish: $25.5 million in Hospital Revenue Bonds for essential upgrades.
  • Louisiana Tech University, Lincoln Parish: $10 million in Revenue Bonds for new parking facilities and related infrastructure.
  • Juban Crossing Community Development District, Livingston Parish: $22.82 million in Revenue and Special Assessment Revenue Bonds for water management, distribution systems, and roadwork.
  • City of Bastrop, Morehouse Parish: $5.58 million in Street Improvement Revenue Bonds for street and drainage improvements.
  • Village of Forest Hill, Rapides Parish: $1.9 million in Taxable Utilities Revenue Bonds for drinking water system enhancements.
  • St. Tammany Parish School Board: $5 million in Limited Tax Bonds for purchasing Chromebooks and equipment.
  • Louisiana Housing Corporation: $80 million in Single Family Mortgage Revenue Bonds for homebuyer mortgages and home improvement loans statewide.

The State Bond Commission oversees applications from various state entities seeking authorization to incur debt or levy taxes. Approval is mandatory before public entities can borrow money or issue bonds, ensuring compliance with legal and financial feasibility standards.

Treasurer Fleming highlighted the state’s financial achievements, including the highest rate of return on state investments in five years, with an estimated income of over $420 million. Additionally, Louisiana’s General Obligation Bond rating was upgraded from AA- to AA by S&P Global Ratings, reducing borrowing costs.

In 2024, the commission issued $293.82 million in General Obligation bonds for capital projects and $97.105 million in General Obligation Refunding Bonds, saving the state $3.12 million in net present value. Overall, the commission has approved 95 debt applications totaling $3.89 billion and sanctioned 144 local government elections.

Treasurer Fleming credited these successes to the “hard work of our talented team of dedicated professionals.”

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