The Natchitoches City Council discussed industrial utility rates, approved special counsel for oil and gas matters, approved a change order for the Second Street and Two Line Street concrete pavement replacement project and reviewed June 2026 sales tax collections during its Aug. 10 meeting.
During a discussion of utility rates, city officials explained how rates for industrial customers are calculated.
The variable Power Cost Adjustment (PCA) charge is based on the cost of electricity purchased from Louisiana Power and Light. Officials said the PCA charge is applied to industrial customers and residential customers. The city’s base rate is separate from the PCA charge and is the portion of the rate that remains with the city to help operate the utility department.
Industrial customers have separate contracts and their usage is removed from the calculation before the remaining costs are divided among residential customers. They said the large contracts therefore help residential customers because the industrial usage is not included in the amount divided among residential customers.
A Council member questioned the difference between the industrial demand charges and residential rates. Officials explained that customers who peak above 5 megawatts during the year are charged a rate of $2.36, while customers that remain below that level are charged $2.50. The city has consistently been among the lowest-cost utilities in Louisiana based on information discussed at monthly Louisiana Power and Light meetings.
The council approved Resolution No. 54 of 2026, authorizing the hiring of William L. Townsend III as special counsel for issues related to oil, gas and minerals. The resolution authorized Mayor Ronnie Williams Jr. to execute an engagement letter with Townsend. The city had been approached regarding a seismic permit for city-owned property and anticipated potential oil and gas issues in the future, including an oil and gas lease.
The council also approved Resolution No. 56 of 2026, designating Friday, Sept. 4, as an official holiday for city employees.
The council amended its agenda to add Resolution No. 57 of 2026 concerning a change order for the Second Street and Touline Street concrete pavement replacement project. The resolution authorized the mayor to execute Change Order No. 2 to the contract with Skyjacks Trucking LLC for the project. The original contract amount was $2,315,156. Change Order No. 1 increased the contract amount to $2,327,084. An additional $280,000 in state funding was appropriated for the project.
City Engineer Nick Verrett said unstable soil was discovered during the first phase of the project on Second Street between Church Street and Trudeau Street. Crews initially attempted to dry and stabilize the soil, but some areas ultimately had to be undercut by approximately 3 feet, while other areas were undercut by 1 to 1 1/2 feet. New select fill was brought in to establish a stable subgrade for the new concrete pavement.
Another portion of the change order involved work at the Church Street intersection, where additional pavement had to be removed and replaced to install a new manhole. The total amount of Change Order No. 2 was $73,919. The state Office of Facility Planning and Control was reviewing the change order and was expected to provide 75% of the cost, or $55,439.25.
The project had encountered some delays because of the soil issues. The city had anticipated reopening the northbound lane of the closed portion of Second Street the previous week, but testing showed insufficient structural concrete compressive strength. Another test was scheduled for the following day.
Reopening the northbound lane would allow traffic from Trudeau Street to travel north on Second Street, but the southbound lane would remain closed because construction was continuing on the next section between Trudeau Street and Touline Street. The soil conditions in the portion of the next section where pavement had already been removed appeared to be more stable.
The project was originally scheduled for approximately nine months, or 210 days. It’s slightly behind schedule because of the issues encountered during the first section. The city was targeting completion of the Second Street portion before the first weekend of October because of the upcoming car show. The remaining work will include Touline Street from Second Street to Fourth Street, along with isolated patching in other sections of Touline Street.
The council also discussed traffic around the project following the start of school. The closure was likely affecting traffic but not as much as might normally be expected because other routes remain available. City officials had also discussed the possibility of paying for off-duty police officers to assist with traffic control, particularly in the mornings.
The council also discussed a sign placed in front of City Hall concerning a demolition project funded by the U.S. Department of Housing and Urban Development.
During the financial report, the city’s June 2026 sales tax information was presented. The city had collected approximately $7.3 million in sales taxes as of June 2026. Compared with the same period last year, collections were down slightly by less than 1%, or approximately $27,000.
For June alone, the city collected approximately $1.2 million in sales taxes, down 1.2%, or approximately $14,000, from the same month last year. The city’s 2% TIF tax was up approximately 13%. Collections increased from $29,134 last year to $33,015 this year. Hotel occupancy tax collections were slightly down.
Another TIF district was up 11%, with $150,662 collected compared with $135,680 during the same period last year. Economic Development District A was down approximately 8%, with collections of $29,583 compared with $31,896 last year. Economic Development District C was up 1%, with $258,000 collected compared with $256,000 last year. Economic Development District D was up 26%, while District E was down 2% and District F was up 33%.
The different districts showed a mix of increases and decreases but that collections remained close to the previous year.
The DMV sales report was up 4.2%. Sales increased from approximately $1.6 million last year to approximately $1.7 million this year.
The council was also presented with a proclamation declaring Sept. 4 and 5, 2026, as the Cane River Zydeco Festival in the City of Natchitoches.
The council introduced an ordinance authorizing the mayor to award the bid for hangar door replacement at Natchitoches Regional Airport.
Another ordinance was introduced to revoke the dedication of a portion of Third Street located south of Church Street.
The council also considered a resolution authorizing the mayor to enter into a maintenance agreement with the Louisiana Department of Transportation and Development for mowing and litter pickup from July 1, 2026, through June 30, 2027.
The next scheduled Natchitoches City Council meeting is Aug. 24, 2026.