Morgan's three bonds, its reserve accounts and a 2013 loan between utility funds

Morgan City's fiscal 2025 audit lists three bonds. Series 2022 sales tax revenue bonds, issued for road improvements, had $3,328,000 outstanding at June 30, 2025 and mature Dec. 15, 2032. The note gives a 4% interest rate, while the repayment table under it is headed 1.50%. ^[1]

Series 2018 sewer revenue bonds had $2,068,000 outstanding at 1.5%, maturing Dec. 1, 2038. Series 2010 sewer revenue bonds had $453,000 outstanding at 5.61%, maturing June 1, 2036. ^[2][10]

The city retired $513,000 of bond principal during fiscal 2025, according to the management's discussion. ^[6]

Accounts the bond documents require

For the Series 2010 bonds, the audit says the bond documents require one month of operating expenses in a reserved expense account; that account held $46,888 at June 30, 2025. The bond account held $0. ^[3]

For the Series 2018 bonds, the audit describes the same reserved expense requirement and reports a $0 balance. The bond account also held $0. The reserve account held $164,835, the full required amount, and the emergency repair and replacement account held its full $82,417. ^[3]

The auditors' reports identify no material weakness and no reportable noncompliance under Government Auditing Standards. ^[7]

Fiscal 2026 sewer bond payments

The sewer fund's "Sewer Bond Expenses" line shows $592,784.52 in the budget report's fiscal 2026 year-to-date actual column, printed July 31, 2026. The original fiscal 2026 budget for the line was $165,000 and the amended budget $600,000. The fiscal 2027 budget lists $110,000. ^[4]

The audit's schedules show $163,010 due on the 2018 bonds and $55,544 on the 2010 bonds in fiscal 2026. ^[2][10]

The Water Fund's loan

According to the audit's notes, the Water Fund borrowed $1,081,971 from the Electric Fund on April 10, 2013, repayable monthly at 1.50%. $223,478 in principal remained at June 30, 2025, with the final payments scheduled in fiscal 2028. ^[8]

The proprietary fund statements record the amount as due to other funds in the Water Fund and due from other funds in the Electric Fund. The management's discussion describes it the other way, as a payable from the Electric Fund to the Water Fund. ^[9][11]