School board authorizes pursuit of up to $30M LCDA hurricane‑recovery financing; some members urge spending plan

The St. John the Baptist Parish School Board on Thursday approved a resolution authorizing the district to proceed with financing of up to $30,000,000 through the Louisiana Local Government Environmental Facilities and Community Development Authority (LCDA) to fund Hurricane Ida repairs, remediation and related project costs.

The Board voted to authorize the request after staff presented financing parameters and recommended selection of a bid option. District presenter Tobi Cortez said the recommended bid carried a fixed 1.75% interest rate for five years; under the proposed structure the district would make semiannual interest payments starting July 1, 2022 and would not be required to make principal payments until a final maturity date of Jan. 1, 2027. The loan is callable on Jan. 1, 2023. Cortez described the mechanics: proceeds would be deposited with a trustee, the district would draw funds by requisition, and permitted payment sources include excess district revenues, FEMA reimbursements and insurance proceeds but not property tax revenues legally dedicated to general‑obligation debt service.

Board discussion: Board Member Burl raised concerns that the district lacked a clear financial plan for spending and tracking the loan proceeds and asked for stronger financial oversight. Cortez said three bids were received and recommended drawing down the full $30 million if the Board desired to pay outstanding hurricane‑related invoices quickly. Proponents said the mechanism would speed repairs and allow the district to address outstanding vendor claims; opponents urged safeguards and clear tracking by finance staff.

Legal/contract language: The draft bond resolution reviewed by the Board pledges “lawfully available funds” to secure the loan while explicitly stating the Board will not pledge the full faith and credit or levy taxes beyond legal limits. The resolution allows bonds up to $30 million, a maturity not to exceed 10 years and an interest cap of 5% per annum in the document language presented to the Board.

Next steps: The resolution instructs staff to advance documents and coordinate with bond counsel, the placement agent and the Authority to finalize terms and required documents. Board approval authorized staff to proceed with the financing process; the loan still requires closing documentation and operational procedures for requisitions and trustee handling of proceeds.

Board vote: The motion carried (roll call recorded as 10 yeas, 1 absent).