TALLULAH, La. (KTVE/KARD) — The City of Tallulah is continuing discussions about the future management of its water system as state officials and local leaders weigh the potential appointment of a fiscal administrator, a move city leaders say could provide access to millions of dollars for needed water system improvements.
According to Mayor Yvonne Lewis, the city’s water service has seen significant improvements since Magnolia Water System was appointed operator of the Tallulah water system in February 2025. Lewis said residents have expressed satisfaction with the upgrades, and the Tallulah school district has not missed any school days due to water-related issues since Magnolia assumed operational responsibilities.
The issue of long-term management of the water system gained momentum in April 2026, when the previous Tallulah City Council voted to pursue the appointment of a fiscal administrator to oversee the water system. Under the proposal, the fiscal administrator would manage only the water system, similar to Magnolia’s role as operator.
Following the council’s vote, a fiscal review committee consisting of representatives from the Louisiana Attorney General’s Office, State Treasurer’s Office, and Legislative Auditor’s Office was formed to review the proposal. On May 21, 2026, the committee unanimously voted to support moving forward with the fiscal administrator process after reviewing information and decisions made by the previous city council.
Because Louisiana law requires a judge to appoint a fiscal administrator, Attorney General Liz Murrill’s office filed a petition in court seeking approval of the appointment.
On June 18, 2026, the City of Tallulah was served with court documents requiring its appearance in Baton Rouge for the fiscal administrator case. The city was also served in a separate lawsuit filed by two former city council members who opposed the move.
Both cases were heard on June 23 before Judge Wilson Fields. After an extensive hearing that included questions about the proposed fiscal administrator’s qualifications and operations, Fields denied the request to appoint a fiscal administrator for the city’s water system.
However, on July 10, 2026, the Attorney General’s Office filed a new case seeking once again to appoint a fiscal administrator for the Tallulah water system. A hearing on that request is scheduled for Aug. 14 in Baton Rouge.
Meanwhile, another development emerged on July 15 when the City of Tallulah received a termination letter from Magnolia Water System. According to city officials, Magnolia stated that it no longer believed it was fiscally responsible to continue operating the system under its current arrangement with the city.
The letter detailed what Magnolia considers to be more than two years of assistance provided to Tallulah’s water system and included an invoice totaling approximately $4 million. Mayor Lewis emphasized that the amount cited is not a debt owed by the City of Tallulah, but rather what Magnolia contends is a financial obligation that should be addressed by the state.
Magnolia’s letter also encouraged the city to support the Attorney General’s latest effort to secure the appointment of a fiscal administrator, arguing that doing so could strengthen the case and potentially create a pathway for repayment of funds the company believes it is owed.
Lewis said she is reviewing Magnolia’s claims and noted that some of the billed expenses include attorney fees and other costs she does not believe should be the city’s responsibility. However, she acknowledged that much of the spending appears to have been directed toward improvements to the Tallulah water system. The mayor also noted that the state has already paid Magnolia several million dollars for work associated with the system.
Lewis stated that one of the key reasons they support the fiscal administrator proposal is access to the state’s Water Sector Emergency Sub-Fund, a $10 million program designed to assist struggling water systems. Lewis said Tallulah learned about the funding opportunity in early 2025 from state officials
Under the proposed arrangement, the city could access approximately $10 million in emergency funding. City leaders say those funds could be used to cover roughly $1.4 million for a temporary filtration unit installed by Magnolia that has helped improve water quality, address outstanding financial obligations, and fund additional infrastructure improvements to the water system.
Lewis said that, to her knowledge, no other community has applied for assistance from the fund at this time.
Residents are invited to attend a community meeting on Thursday, July 23, at 5:30 p.m. at the Tallulah Community Center to discuss the future of the city’s water system. Representatives from the City Council, Governor’s Office, and Louisiana Attorney General’s Office are expected to be on hand to answer questions and address community concerns.
“I am in favor of the fiscal administrator,” Lewis said. “I know there are pros and cons to that, but I believe the pros outweigh the cons. Any way we can continue to work with the state and help move this process forward in a positive manner is what we need to do.”
Lewis provided the latest update on the issue and encouraged residents to attend the meeting and share their questions and concerns as Tallulah continues to explore options for the future of its water system. The mayor’s comments were made in a video released on the City of Tallulah’s social media pages earlier today. The video can be viewed here: Tallulah Water System Update .