Legislative Auditor: 18 Louisiana towns may be on brink of financial collapse

Greg Hilburn
The News Star

Eighteen Louisiana cities, towns and villages may be on the brink of bankruptcy or an inability to continue to provide basic services to its residents, according to a report release Wednesday by Legislative Auditor Daryl Purpera.

The city's annual audit questions whether Grambling will remain "a going concern."

The municipalities listed in the report range from small villages like Epps in northeastern Louisiana to larger towns like Vidalia and Winnsboro in northeastern and central Louisiana.

Purpera compiled the list of what he describes as "fiscally distressed municipalities" that "may not be able to continue providing basic services – such as law enforcement or water and sewer – to their residents in the near future."

The list has been added to the to the Legislative Auditor's website at  https://www.lla.la.gov/reports-data/fiscally-distressed-municipalities/index.shtml

The municipalities listed as fiscally distressed and the reason or reasons include:

Melville (fiscal review monitoring; Rural Water infrastructure Committee concerns);

Clinton (fiscal review committee is monitoring);

Lecompte (auditor couldn't issue an opinion for the most recent year);

Ball (auditor couldn't issue an opinion for the most recent year;

Jonesboro (auditor couldn't issue an opinion for the most recent year);

Washington (auditor issued a concern regarding ongoing operations about whether it can continue as a going concern);

Grambling (auditor issued a concern regarding ongoing operations about whether it can continue as a going concern);

Epps (auditor issued a concern regarding ongoing operations about whether it can continue as a going concern);

Tallulah (auditor issued a concern regarding ongoing operations about whether it can continue as a going concern);

Basile (auditor issued a concern regarding ongoing operations about whether it can continue as a going concern);

Lake Providence (auditor issued a concern regarding ongoing operations about whether it can continue as a going concern);

Newellton (auditor issued a concern regarding ongoing operations about whether it can continue as a going concern);

Baldwin (auditor issued a concern regarding ongoing operations about whether it can continue as a going concern and Rural Water infrastructure Committee concerns);

Winnsboro (latest financial statements indicate a negative fund balance — deficit);

Waterproof (latest financial statements indicate a negative fund balance — deficit);

Vidalia (latest financial statements indicate a negative fund balance — deficit);

Tullos (Rural Water infrastructure Committee concerns); and

Powhatan (Rural Water infrastructure Committee concerns).

Purpera said the purpose of the list is to alert the public and state and local officials early so they can address the problems.

"Our goal is to work with each municipality's elected officials and to provide recommendations to place the municipality on a path to fiscal stability," Purpera said in a press release.

This new list is different from the Legislative Auditor's non-compliance list, which shows local governments that haven't met deadlines to submit a required financial report to the Legislative Auditor.

Greg Hilburn covers state politics for the USA TODAY Network of Louisiana. Follow him on Twitter @GregHilburn1.