On June 24, 2025, Tallulah Mayor Charles Finlayson issued a statement addressing the city’s deteriorating financial condition, highlighting severe deficits in the Water and Sewer Funds. Blaming skyrocketing operational costs at the city’s water plant and widespread non-payment of sewer bills, Finlayson warned that without swift corrective action, Tallulah could face state intervention in the form of a fiscal administrator. The full statement is presented below.
FROM THE DESK OF THE MAYOR
As we head into the next fiscal year for the City of Tallulah, I would like to share information with the citizens regarding the financial status of our City, with an emphasis on the Water Fund and the Sewer Fund. I want to be very clear with our citizens that the City of Tallulah is facing a financial crisis due to a combination of factors including astronomical expenses at the Tallulah Water Plant over Fiscal Year (FY) 24/25 (July 1, 2024 to June 30, 2025) and non-payment of Sewer bills by a significant number of customers since April of 2025.
First, I would like to address the Water Fund. In FY 24/25, operational expenses far exceeded the budgeted amount. Astronomical costs at the Water Plant meant that the Water Fund ran at a deficit for most of the fiscal year. This affected General Fund as the Water Fund was unable to reimburse General Fund for payroll and payroll expenses. To explain, generally, all payroll and payroll expenses are paid from General Fund and then there is a transfer from Water Fund and Sewer Fund back to General Fund for that particular payroll pay period amount. Due to the overwhelming amount of expenses at the Water Plant, the transfers from the Water Fund to General Fund for payroll did not occur over the majority of FY24/25.
What this means is that General Fund has been subsidizing the Water Fund’s payroll expenses since October 2024, in the amount of $462,588. The City’s Sales Tax goes into an account at Delta Bank. In October 2024 the Sales Tax account had approximately $867,000, which we proudly kept as a rainy-day fund. That account now has approximately $248,000 in it. Withdrawals were made to (1) Continue City operations and (2) Offset sky- rocketing expenses at the Water Plant.
As fiscal year 24/25 closes, we find that we are $440,000 over budget. Although we did enter into the Receivership last June, we still faced paying all operational expenses up until March 2025 (when Magnolia Water began collecting water revenue) and payroll expenses through May 2025 (when water employees opted to terminate City employment and begin working for Magnolia). We appreciate the assistance from the State of Louisiana, which has invested over $1.5 million into the Tallulah Water Plant since late February 2025 and will continue to assist our City until we have clean water. However, the exorbitant expenses at the water plant from July of 2024 to February of 2025 caused us to experience a heavy financial blow.
With regard to Sewer, once water revenue began being collected by Magnolia in March 2025, the City saw a tremendous drop in Sewer and Trash billing collections. We worked with Magnolia to develop contracts that would allow Magnolia to assist with Sewer collections by turning off water services if customers did not pay their sewer bills. On June 12, 2025, the City Council opted to not sign those contracts.
Without those contracts in place, Magnolia will not assist in turning off water services when customers do not pay their Sewer Bills. I intend to bring those contracts back before the Council for re-consideration. Without the threat of having water services interrupted for non-payment of sewer billing, there are no consequences for individuals who do not pay their Sewer bills. With lower sewer collections, we now face operational revenue for the Sewer system as a whole.
As of today, there are 441 outstanding sewer bills that have not been paid. I’d like to remind everyone that along with sewer charges, the sewer bill also collects for garbage services. Garbage revenue is deducted and paid directly to the Madison Parish Police Jury. If sewer bills are not collected, then that means we are unable to pay the Jury for trash services. This poses the very real possibility of potential litigation.
I am urging each of you to pay your Sewer bills promptly. I am also urging the City Council to revisit the Magnolia contracts and approve them so that we have real consequences for individuals who chose not to pay their sewer bills. It is only fair -- if you have sewer services then you are responsible to pay your rightful bill.
I have an obligation to advise you all of our precarious financial position. Without some very quick action, we are facing the real possibility of a fiscal administrator being appointed to take over city operations. If that happens, all decisions will be made by the administrator with no input from the Mayor or the Council.
I am asking all citizens to attend Senator Katrina Jackson-Andrews and Representative Travis Johnson forum on Monday, June 30, 2025, at the Tallulah Madison Community Center. Our state delegation will host a post Legislative Session and Water Update. Both Senator Andrews and Representative Johnson are aware of our financial position. I am asking them both for their assistance as Tallulah faces our daunting challenges.
Charles Finlayson
Mayor of Tallulah
