(The Center Square) − The Louisiana Legislative Auditor’s Fiscal Review Committee has voted to place the city of Bogalusa under fiscal administration, citing severe financial distress.
The decision follows the arrest of Mayor Tyrin Truong, 25, on accusation of using drug money, soliciting prostitutes and involvement in a drug trafficking network.
Bogalusa has been grappling with a significant decline in cash reserves, raising concerns about its ability to meet financial obligations, according to Judith Dettwiller and Steven Kraemer of the Louisiana Legislative Auditor’s office.
According to the LLA, the city’s cash balance dropped from $6.7 million at the start of 2024 to approximately $3.42 million by year’s end—a nearly 50% reduction.
“It’s clearly that we need assistance. We need to help in getting all issues resolved for our city and for our citizens, more importantly,” Bogalusa city councilmember Gloria Kates said.
Additionally, the city faces roughly $10 million in outstanding payables, with only $500,000 in unrestricted funds available to cover debts. Among these obligations, the city owes the IRS approximately $1.2 million in unpaid payroll taxes and an additional $273,000 to the Louisiana Department of Revenue.
Vendor payments totaling around $600,000 are also past due.
Kraemer further noted that Bogalusa’s water bond accounts are not adequately funded. The city transferred $62,000 from its depreciation contingency account into the general fund in September, failing to replenish it, which may put the bond in jeopardy.
Meanwhile, the city has projected a $3.1 million general fund deficit for the fiscal year and planned to shift $1.7 million from the utility fund to cover shortfalls — despite existing compliance issues with the Department of Environmental Quality .
Payroll tax payments to the IRS and the state stopped around October 2023 and remained unpaid through November 2024. Though city officials are attempting to negotiate a payment plan with the IRS, no agreement has been finalized, and penalties and interest continue to accrue.
Additionally, between January and October 2023, payroll tax payments were made but not properly filed, further complicating the situation.
Bogalusa’s risk management fund is also under strain, with a balance of just $263,000. Questions were raised about whether the Louisiana Municipal Association risk management group could terminate the city’s insurance, particularly workers’ compensation.
The Louisiana Firefighters Retirement System is also owed about $116,000 — equivalent to one to two months of payments.
Adding to the city’s woes, property tax bills, which were supposed to be mailed around November 1, were delayed until December 9, potentially postponing the collection of $3 million to $4 million in much-needed revenue.
Meanwhile, the city’s financial reporting is in serious arrears. The 2022 audit, due in September 2023, remains incomplete, delaying subsequent audits for 2023 and 2024.
A private firm was hired to clean up the city’s accounting records at a cost of several hundred thousand dollars, but the work remains unfinished. If the 2022 audit is not completed by June 30, Bogalusa will be three years behind —an automatic trigger for state-imposed fiscal administration.
After his arrest, Truong posted a $150,000 bond and returned to work at city hall early this month.
Truong took to social media to defend himself, stating: “When you’re cutting contracts, shutting down favors and exerting influence — shaking up things and exposing truths — you become a target.”
He denied the allegations and insisted he would let his attorney handle the matter.
The Louisiana State Police-led investigation links Truong to a drug trafficking network accused of using social media to distribute narcotics and launder drug money through firearm purchases tied to violent crimes. Several individuals have been arrested in connection with the case, and further legal proceedings are expected.
Cates confirmed that the council unanimously voted on Dec. 6 to request a fiscal administrator from the Louisiana Legislative Auditor’s office. “It’s clearly that we need assistance. We need to help in getting all issues resolved for our city and for our citizens, more importantly,” she stated.
However, the resolution was not signed by the mayor.
“At the time, the mayor, no, did not sign,” Cates noted, adding that she was uncertain whether the mayor now supports the measure.
One of the most pressing issues facing the city is its failing sewer infrastructure.
“Citizens posted about 14 videos to social media reporting the sewer issues and showed sewage bubbling out,” Councilmember Mark Irvine said. “We tried to write work orders on it as fast as we could. As a council, we don’t like to make comments on it, because we are not repair people.
“But we did report this into our work order system as quickly as we did. There were some we didn’t even know about.”
According to Irvine, some of the sewage spills have led to road collapses. “There’s even one in a creek that literally was marked completed in fall 2023, and as of last month, it was still bubbling inside that creek and pouring raw sewage through an eight-inch line,” he said.
Cates highlighted ongoing struggles in accessing financial records, particularly those related to invoices for sewer system repairs.
“I had requested our financials, specifically the invoices on the pumps and sewage, which I did not ever gain access to,” Cates said.
She noted that a former public works director had informed her that he was prevented from providing certain records. Despite the council’s efforts to obtain financial transparency through committee meetings, many requests remain unfulfilled.
“Funds have been gone,” Cates said, adding that while ARPA funds were allocated for water and sewage projects with unanimous council approval, additional funds were also designated for parks, streets, and retail strategies.
The Louisiana Department of Environmental Quality has since become involved.
“We have a health and welfare issue, but the DEQ is aware of that. They are aware of this issue,” Irvin stated. However, he expressed frustration at the city’s misaligned priorities. “It’s nice to have luxury items like dog parks and all that for bigger cities, but when you have sewage bubbling up in the middle of the street, you need to take care of that.”
With the city now under fiscal administration, state-appointed administrator Robert Neilson will oversee Bogalusa’s finances, including budgetary decisions and debt repayment strategies. Nielson is a certified public accountant, and has worked for the city of Bogalusa as an auditor.