STERLINGTON, La. – The Sterlington Town Council earlier this week approved a handful of policies guarding how Sterlington spends money as part of an effort to satisfy the state’s criteria for releasing the town from financial oversight.
Sterlington is currently under the management of Fiscal Administrator I.M. “Junior” Shelton. The State Fiscal Review Committee appointed Shelton to the position in 2019 after Sterlington failed to make a debt service payment for December 2018. At the time, Sterlington struggled to generate revenues and had accumulated some $20 million in debt under the tenure of former Mayor Vern Breland. Breland now faces criminal charges stemming from his time as mayor.
For many months, Sterlington officials have often discussed how soon the town might escape financial oversight and resume normal operations where Mayor Caesar Velasquez and the Town Council make all financial decisions—without asking Shelton for permission.
“My understanding is the town is basically solvent,” said Velasquez, during the Town Council’s regular meeting on Tuesday. “We’re not behind on any of our payables.”
Sterlington currently has a positive fund balance of some $600,000, according to Monroe attorney Devin Jones, who serves as the town’s legal counsel.
“There’s no timeline, but we’ve hit most of the markers set by the state,” Jones said. “We’re paying our debts. All the hard work has been put in, now we just have to maintain it.”
Concerning Shelton’s time as fiscal administrator, Town Council member Ron Hill said, “I don’t think he’ll continue indefinitely. He’ll be here for the next few months, at least.”
The resolutions adopted by the Town Council instituted policies pertaining to purchase orders, check-writing, distribution of funds, and re-establishing the town’s Financial Oversight Committee to make recommendations to town officials.
Initially, Hill challenged some of the proposed policies as redundant with state ethics laws. For example, Hill objected to including policies outlining appropriate related party transactions because the state Ethics Board already required elected officials to review such policies.
“This came from the LLA,” said Velasquez, referring to the Louisiana Legislative Auditor.
Later, Velasquez and Jones confirmed Shelton—who was absent Tuesday—and the Legislative Auditor’s office had asked the Town Council to amend the town’s financial oversight policies.
Hill expressed surprise at news the Legislative Auditor had requested the changes, though he noted the town had similar policies in place in the past.
“In the past, it wasn’t followed,” said Town Council member Matt Talbert.
“Well, it was until it wasn’t,” Hill said.
Some of the policies require that any purchase by the town must be made through a purchase order signed by two people: Velasquez and either Talbert or Hill, instead of the mayor and town clerk.
“The fiscal administrator asked us to amend it from town clerk to alderman,” Jones said. “Velasquez originally put the policy in place, so we’re just changing that language.”
At this time, the Town Council declined to amend the town policy allowing a purchase to be made—for any amount—without a purchase order signed by two people.
On another front, the Town Council declared a restroom trailer as surplus property and plans to advertise the movable for bids.
“We’ve had quite a bit of interest in it,” Velasquez said. “Today I actually showed it to some guys from Caldwell Parish. I explained to them what the process was. We’d declare it surplus property and set a minimum price.”
The minimum bid is $30,000.
Sterlington originally bought the restroom trailer for $40,000 three years ago, under former Mayor Vern Breland. At the time, there were no working restrooms at the Sterlington Sports Complex.
“That thing’s going to go quickly,” Jones said. “People will probably be here fighting over it.”
