Writing off the debt

Published 6:00 am Thursday, December 28, 2017

After tabling the resolution for months, the Iberia Parish Council voted in favor of writing off more than $3 million in debt from the Acadiana Fairgrounds Commission at Wednesday night’s regular meeting. 

The resolution originally was billed as forgiving loans the AFC had made to the Iberia Parish Council during the creation of the former Cajun RVera. In total, the sums were $1.8 from the AFC budget, $1.7 million from the General Fund budget and $52,753 from the Royalty Fund budget accounted for in terms of loans. 

IPC Chair Natalie Broussard said several council members met with parish administrators about the resolution in order to get a better idea about what was being done after legal counsel Andy Shealy proposed resubmitting the resolution as a budget adjustment instead of loan forgiveness at the Dec. 13 meeting. 

“Some of us met with the administration and to get a grasp on what this actually involves, because the word ‘forgive’ made a lot of council members very uncomfortable,” Broussard said. “During that discussion it became very obvious to us that this, at this time, is an uncollectable debt, it’s very deceptive on our books and it makes it look like Iberia Parish has $2 million in assets that it doesn’t have.”

Continuing to have the loans as an asset could affect the bond rating, cause problems with getting grants and affecting the parish’s relationship with the Louisiana Legislative Auditor, Broussard said. 

Broussard emphasized the resolution would not forgive the loans from the AFC.

“The substitute motion says we’re not forgiving the debt,” Broussard said. “If we ever liquidate the asset we can collect it. It’s like with any business. If you have an uncollectible debt, basically you write it off.”

The resolution passed 9-1 with only one dissenting vote, Councilman Warren Gachassin. Gachassin said the Louisiana Legislative Auditor has yet to record the budget item as a problem in previous audits. 

However, Councilman Paul Landry said the auditor allows for a three-year time period before addressing these kinds of fiscal items.

“We’re just trying to do something before we get the black eye. We’re in the third year and it’s time to address it,” Landry said.  

IPC members Chad Maturin, Ricky Gonsoulin, Michael Landry and Joel Dugas were absent from the meeting.

In other business, the Iberia Parish Council unanimously voted to: 

• Request the administration to schedule and conduct energy audits on the main courthouse, Iberia Parish Jail, and new Public Works buildings will be voted on so the parish can participate in the Cleco Commercial and Industrial Solutions Program to offset energy costs in the future. 

• Amend the 2017 Public Buildings Maintenance Fund Budget in the amount of $27,000 for the purchase of a rodeo chute gate and cattle roping gate for use at the SugArena, all to be funded from the Fund Balance

•  Reappoint Jody Suire and Benny Menard to the Iberia Economic Development Authority is on the agenda, and reappoint Carol Bodin to the Iberia Veterans Memorial Board.