New Orleans City Council approves $90M bond for debt payments and judgments

A pivotal resolution to issue up to $90 million in limited tax revenue bonds for the city of New Orleans has passed unanimously, marking a significant step towards addressing longstanding financial judgments against the city. The resolution, which emerged from the budget committee on July 1, aims to alleviate the burden of historical liabilities that have lingered for decades.

Council member Corey Burnside raised concerns during the meeting, questioning the implications of diverting property tax revenues before they reach the general fund. He highlighted that while the bonds would help pay off judgments, they could also diminish future inflows into the city’s finances for an extended period. Burnside emphasized the fairness of the situation, noting that half of the parish does not pay property taxes, which means the financial burden falls disproportionately on property owners.

Council member Green responded by underscoring the importance of fairness for those owed money by the city, stating that many have waited years for compensation. He expressed gratitude for the collaborative efforts of the administration and the council in bringing this resolution forward, emphasizing that it is a long-overdue step towards rectifying financial injustices.

The council also discussed plans for a future election on November 15, 2025, where voters will be asked to approve the issuance of general obligation bonds. This initiative is designed to ensure that the city can manage its financial obligations without increasing property taxes, as the millages have been rolled back over the past eight years.

As the council moves forward, the focus remains on transparency and fairness in addressing the city’s financial responsibilities, with leaders encouraging public engagement and understanding of the measures being taken. The anticipated outcomes of these resolutions could reshape the financial landscape of New Orleans, providing relief to those owed money and setting a precedent for future fiscal management.