Louisiana commission approves bonds for Lake Charles recovery

The Louisiana State Bond Commission Thursday approved the city of Lake Charles' plan to sell $145 million in revenue bonds.

The bonds are to be used for a variety of projects aimed at recovering from multiple natural disasters that struck the city in 2020 and 2021, said Conner Berthelot, assistant director at the State Bond Commission.

The city plans to bring the bonds to the market in two or three tranches, said Emily McDaniel, the Lake Charles director of finance. The first of about $60 million will come in March or April and a second will come in late 2027, McDaniel told The Bond Buyer.

The city is considering using bond insurance but hasn't decided yet, McDaniel said.

The costliest projects are $28.8 million for quality of life and economic development, $26 million for Enterprise Boulevard extension and bike trail and $25 million for repairs and improvements to West Sallier Road and 12th Road.

The bonds are to mature in no more than 30 years. Raymond James & Associates will serve as the lead underwriter and Stifel Nicolaus will be the co-manager.

Jones Walker is the bond counsel. Government Consultants of Louisiana is the municipal advisor.

The city will use a 2% sales tax to be levied in perpetuity and an 1/2% sales tax that will expire in 25 years to pay off the bonds.

Also at Thursday's bond commission meeting, the commission approved 22 parishes, utility districts, school boards, ambulance service districts, fire protection districts and a city to hold referendums on proposed tax increases, bonds, or home rule charter amendments.