[StBernard] Council Has Tie Vote on Federal Disaster Loan Program

[Westley Annis]

In a tie vote, the St. Bernard Parish Council on Tuesday night voted twice
not to ask permission to borrow more money through a low-interest federal
loan program, although the chief administrative officer said it would be the
only way to start rebuilding public buildings destroyed by Hurricane
Katrina. 
 
The resolution to ask the state Bond Commission for permission to borrow up
to $10 million in case the Council wanted to borrow the money failed because
of a 3-3 vote. Officials said the issue may be taken up again. One Council
member whose vote could have broken the tie wasn't at the meeting.
 
Council Chairman Lynn Dean and Council members Mark Madary and Judy
Hoffmeister voted against asking the Bond Commission for authority to borrow
the money. Council members Kenny Henderson, Craig Taffaro Jr. and Ricky
Melerine voted in favor of seeking permission to borrow. Council
Vice-Chairman Joseph DiFatta Jr. was out of the parish and couldn't attend
the meeting.
 
Dean said it would be wrong to borrow $10 million through a federal
Community Disaster Loan program. "I don't spend what I don't have,'' Madary
said.
Acting Chief Administrative Officer Dave Peralta said that without a loan
the parish doesn't have money to pay for costly repairs to the government
complex and other damaged buildings. The Federal Emergency Management Agency
will reimburse the parish only after projects are completed, he said.
 
Henderson said, "I think we need the money to get started on a new
(government) building.''
 
William Beck, a bond attorney with Foley & Judell, said the vote's timing
was critical because Friday is the deadline to get the matter on August's
agenda of the State Bond Commission. Municipalities need the state agency's
approval to borrow money. Beck said the federal government has a history of
forgiving such loans and forgave those issued after the 9/11 terrorist
attacks.
 
Beck also aid the money wouldn't have to be repaid for five or 10 years.
 
Beck said dozens of other local agencies are already seeking loans and the
parish's best chance at securing one would be to join them on the agenda for
the next Bond Commission meeting. 
 
The council supported borrowing $8.9 million for operations from the federal
government in a Community Disaster Loan shortly after Katrina swamped the
parish last August. When the parish got the loan for $8.9 million last fall,
its request for more money was whittled down because so many communities and
agencies were asking for loans, Beck said. 
 
Taffaro asked the council to reconsider the measure after the first 3-3 vote
to let Beck and administrators explain that the vote would not obligate the
parish to borrow but would ask permission to borrow.
 
The resulting second vote was also 3-3 and the resolution didn't pass.