Council creates Employee Emergency Payroll Fund, approves strict oversight tied to planned $125 million bridge financing

The New Orleans City Council on Nov. 6 adopted an ordinance to create a narrowly restricted Employee Emergency Payroll Fund and approved amendments that add reporting and Legislative Auditor oversight as conditions for any withdrawal. Councilmembers said the measure is a necessary step to secure short‑term bridge financing while they work on longer-term budget fixes.

Under the ordinance, the fund may be used only for specified purposes when the council authorizes disbursements by resolution. Permitted uses include active city employees’ wages and fringe benefits earned, approved overtime together with customary fringe where a council-approved overtime spending plan exists, certain emergency costs in bona fide force‑majeure events, and transaction and borrowing costs related to issuance of revenue notes. The ordinance requires the Chief Administrative Officer to obtain concurrence from the Legislative Auditor before any withdrawal, and grants the Legislative Auditor view-only access to the city’s financial management system for audit and oversight purposes. Language limits the use of the fund to the life of the revenue note, which the administration and council expect to retire once property-tax receipts and cash flow normalize.

Council leaders said they negotiated the added reporting and guardrails with state officials while seeking approval from the Bond Commission for a short-term revenue anticipation note (discussed publicly as $125 million). Council President Morrell emphasized that the ordinance and amendment are part of a larger effort to “rebuild public trust” through greater transparency and more robust budget processes; Councilmember Helena Moreno said the added oversight reduced the state’s initial proposal to install a fiscal administrator.

Public commenters and several council members raised questions about the city’s broader budget process and the need for future structural changes to budgeting and transparency. Michael Burnside and other speakers urged clearer public accounting of how revenues and transfers interact and asked for dashboards or reporting showing debt-service, interest and principal breakdowns on short-term borrowing.

The council adopted the ordinance as amended by voice vote; members recorded unanimous support in the meeting record. The administration and the legislative auditor will publish or otherwise make available the reporting and concurrence documents required by the ordinance as funds are considered for release.