State officials said the city of Tallulah must approve a limited fiscal administrator in order to access additional funding for its water system, as emergency funds used for ongoing repairs have been exhausted.
During a public meeting, State Senator Katrina Jackson said the state has used all available emergency funds to stabilize the system and must now move to another funding source that requires oversight.
Jackson said the state entered the project after engineers warned the system could fail within months.
She said the next phase depends on access to a water sector emergency subfund created under state law. That funding requires either receivership or a limited fiscal administrator for the municipality.
“If the city does not go through the process of fiscal administration, that $10 million is off the table,” Jackson said.
Under the plan outlined in the meeting, the city would regain control of the system with a state-appointed fiscal administrator overseeing water finances. The administrator would work with the city to bid out a full rehabilitation project.
State officials said the current work has focused on stabilizing the system, but a larger project will be required to address both the treatment plant and the distribution system.
Jackson said earlier bids for repairs did not include the distribution network, where problems have continued to affect water quality at the ends of the system.
Kyle Ardoin, the Deputy Chief of Staff to the Governor said the total cost of repairs could exceed available federal and state funds, requiring additional support.
The meeting also included discussion of federal funding through the U.S. Department of Agriculture. Local officials raised questions about whether those funds can be used under the proposed structure.
Ardoin said the city would be able to access federal funding once the project is put out for bid under the new framework.
The system is currently being operated by a contractor under the state’s emergency declaration. That work will continue during the transition, officials said.
Tallulah City Councilman Toriano Wells raised concerns about billing, communication and management of the system during the meeting. He also questioned the requirement for state oversight tied to the new funding.
Jackson said the requirement is set by state law tied to the funding source and not a discretionary decision.
“The fund we’re trying to tap into requires a limited fiscal administrator,” she said.
Officials said if the city does not approve the measure, the state does not have another identified funding source to continue the work.
The timeline for the emergency declaration remains unclear if additional funding is not secured, according to the discussion.
Jackson said the state is seeking to continue repairs and move toward a full system rebuild, with the goal of providing stable and safe water service.
