New Orleans City Council approves up to $125 million in emergency revenue notes to cover payroll and bills
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Summary
Facing a shortfall tied largely to unbudgeted overtime and other deficits, the council unanimously approved a resolution to issue up to $125 million in revenue notes and seek bond-commission approval to keep city operations and payroll funded.
The New Orleans City Council unanimously approved a resolution authorizing up to $125 million in revenue notes as a short-term measure to cover immediate payroll and vendor obligations, then planned to seek the state bond commission's approval to complete the borrowing.
Council members said the action was reluctantly necessary after the administration disclosed unbudgeted spending, particularly large overtime expenditures, that widened a year-end gap. Council President Morrell and other members described the borrowing as an emergency step to ensure city employees and vendors are paid while the city pursues longer-term fixes.
The measure, introduced as resolution R-25-5-58, was moved, had the rules suspended for immediate consideration, and then was added to the agenda. The council then approved the resolution by voice vote.
Several members and speakers urged structural changes to prevent recurrence. Morrell and others said much of the deficit stemmed from overtime paid across multiple departments and that the budgeting process must be tightened so future administrations cannot deficit-spend without council review. Council members also said they will pursue revenue-collection efforts and reexamine use of ARPA funds to reduce pressure on the operating budget.
Public speakers at the meeting criticized city debt and urged financial transparency. Robert "Tiger" Hammond, president of Greater New Orleans AFL-CIO, called for rapid action so city employees are not left unpaid; another commenter, Michael Burnside, urged more public disclosure of debt schedules.
Vice President Moreno described next steps: once the council passed the resolution, staff would transmit the matter immediately to the legislative auditor and the state bond commission and request an emergency meeting. Council members said they are also pressing the federal delegation for an extension to make certain federal infrastructure dollars available through 2028.
Council members voted to authorize the note issuance and to send documentation to the bond commission; the resolution passed by voice vote with seven yeas and no nays.
