Clerk of Council, New Orleans City Council 1300 Perdito Street, New Orleans, Louisiana, 7011 2, dear Madam Clerk.

Pursuant to my authority in Section 3-1075 of the Home Rule Charter of the City of New Orleans.

There will be a city, a special City Council meeting on Tuesday, December 23rd, 2025 at 9 a.m.

The meeting will be limited to the discussion and consideration of matters relative to the current financial condition of the city, included without limitation, the status of the general fund, and any changes to expected revenue of funding and ordinance number 30,522, and any other matters that may properly come before the council.

Please make the necessary arrangements to have these special meetings, cable cast live on the government access television channel and tape for recasting in the future.

Sincerely, JP Morrell, President, New Orleans City Council.

Roll call, Councilmember Morrell, Councilmember Moreno, Councilmember Caruso, Councilmember Harris, Councilmember King.

Councilmember Green.

Here.

Councilmember Thomas.

Here.

We have seven members.

We have a core.

All right, Madam Clerk.

Um we have to receive the legislative auditors report, so I will move to spend the rules to add that to the agenda.

Seconded by President Morell.

Seven Ya's and A's.

I need to suspend the rules one more time.

Excuse me.

Uh yeah.

And let me add it to the agenda and then yes, sir.

One more.

Seven years and A's.

All right, Mr.

Burnside.

Michael's 2215 Felicity.

So this is not a matter of substance, it's a matter of process.

I went online and looked at the City Council website the other day looking for stuff.

And it seems to me that uh the legislative auditors report's not posted on the city council website.

So I'm unaware if it's posted on some state website.

I did try to Google search and failed to find it.

So I would suggest at some point that this material be made available to the public electronically.

Thank you very much.

Thank you.

Okay.

Um and I guess like Anita afterwards, can we just add this to the agenda online?

Yeah, the clerk's office should be um adding that one.

Great.

All right, sounds great.

All right, Mr.

Wagsback and the team.

And as always, thank you to you and the city for getting this done, particularly given the holidays.

Okay, good morning.

Mike Waggis back, Louisiana Legislative Auditor.

Uh today, December 23rd, 2025.

We are presenting our review of the uh drawdown from the RAND.

So in accordance with the State Bond Commission terms and conditions of approval for the City of New Orleans 125 million dollar revenue notes.

Uh we have established a dedicated fund in which we are going to draw down based on today's numbers.

Our preliminary review indicates that the city's request totaling 11,688,941 dollars.

This includes the $6,410, $382 that would be transferred to the Chase payroll card account and $5,278,559 to reimburse the city's general fund account.

That was outlined below.

First bullet we have $6,410,382 payable to the payroll uh card funding account for the purposes of funding the employee compensation in related employee and employer taxes for the payroll period ending 1220 2025 as noted in exhibit A.

Second bullet, we have $2,438,228 payable to the city's general fund to reimburse the general fund for French benefits, including but not limited to health insurance, pension contributions, and garnishments for the for the prior pay period ending 1213 2025 as noted in exhibit B.

Last bullet we have 2,840,331 dollars payable to the city's general fund account to reimburse the general fund for the monthly payments to municipal employees municipal police employees retirement system and the Louisiana State Employees Retirement System knows lasers on 1215 2025.

That is noted in exhibit B.

Additionally, we have exhibits C D and E.

We can kind of briefly go through C, of course, is the gross earnings to date and the overtime pay to date, which we've been tracking.

Um let's see totals.

I'm sorry, that's for the uh for the pay period 1220 on Zazibi C and the overtime was 200 roughly 260,842, and that's under the projected amount.

Exhibit D, we have our year-to-date schedules, and uh uh detail and gross earnings of 402 million seven hundred and thirteen seven ninety-three thousand of which included that is 49,446,622 of overtime.

Zibic E is basically the checking activity of the revenue anticipation note, the special fund.

And after these transfers are made upon your approval today, uh we'll have a balance in that account of 57 million one hundred and sixty-five thousand five hundred and thirty-four dollars.

I'll entertain any questions at this time.

Uh councilmember Thomas.

As always, thank you.

Uh uh want to continue uh the question I asked you earlier.

Have you gotten in touch uh scheduled that meeting with pharmacy AOC?

We do have a meeting schedule.

Yep, good.

Sure do.

In fact, we'll be meeting later today.

Oh, good, good.

So that'll be before this term uh is over.

It was recently learned that the uh uh SP, uh all three rating agencies have downgraded uh the city to A minus.

If you could use your professional uh position to explain that to the public and what it means, and also, especially going through this process uh in terms of accountability, how it could possibly help us, especially once there must there's more fiscal stability, get that rating back up to where it needs to be.

I think the downgrade is uh is uh the they're starting to watch it closely.

I think there's some concerns.

Fitch did an A minus, not completely bad, but uh you know they're starting to monitor things a little closer, and I think probably in six months, they'll probably you know issue an additional rating based on what they see.

Um the only challenge is I think you're gonna go to market maybe in March or sometime for your next uh uh infrastructure bond.

It's it's quite possible there may be an interest rate change that uh is could be more than the last one may, but to be seen, you know.

But for the rating agencies that are watching this process and you the working relationship, you giving the city the grades it needs not only to be transparent to be a be accountable, um, hopefully that'll help us too when they take a look at regrading or any.

I think the transparency and oversight will help.

Yes.

Thank you.

Councilmember Moreno.

Thank you.

Good morning.

Give us an update on uh JIIR.

Uh I know you've been having communications with the administration.

Pause, not pause.

If we don't get the extension, what would be the cost that we would incur if we can't pause until the 12th?

What does that look like?

Yeah, I I'm encouraged.

The uh the the governor has put me in touch with uh some higher ups in FEMA.

Uh it it appears that uh we're in a process right now of going through the project list.

I think the uh I think the uh uh FEMA wants to take some of the projects off the list, primarily those of which have not really been touched or started.

Uh obviously after 25 years, if it hasn't started, they're trying to figure out whether there's a true need or not.

So we've been in intense discussions with GOSEP, Governor's Office, uh as well as uh uh City, City New Orleans and FEMA to try to sort through the project list, and we're trying to put together a really good list so that they can bless the extension, and uh obviously won't we won't include anything that's in progress with the JIRR.

Now, I'll tell you the only disappointing news, but I think we can work on this, is it appears that this extension is only gonna be six months.

So we're gonna have to work through that, and the governor's committed to working through that process with with the folks in DC.

So you know, obviously, I think all the money is in the possession of the uh of GOSEP, the state of Louisiana as we sit here today, but we're gonna have to think strategically as to maybe what we know we can complete in six months, and just in the event we're not in this situation, uh, you know, in June 30th, where we have an open road somewhere in the French quarter, and there's a concern we may have to uh stand down.

So I mean, I guess you know, with the news that that you've received, and and um I know you've not.

Yeah, exactly.

Um, you know, obviously, you know, I I think Council President Morel put it to me this way.

It's like you live to fight another day with getting this extension beyond, should we get that beyond this year, but but six months is is so limited for long-term planning.

Um, so that's that's my concern around that.

But but if it's a situation and we'll obviously this is this is all something that we'll we'll see what happens.

Um if if it's just seeing how the new administration is gonna come in and how we're gonna operate and and work and and work through these projects, and then based on that, do another extension.

But you know, hopefully, if we get a six-month extension, maybe beyond that point we can get an extension longer than that taking us into 2028.

I I think as soon as the six months extension comes in, we really need to start asking for the next extension because I know there's a couple projects, one of which is gonna require a lot of coordination with EPA, and I think that project will not finish out estimate until December 1 of 2028.

So I think maybe you know, there needs to be maybe a separate extension for certain projects that we can immediately go to work on after you know, after the first of the year.

Yeah, and and to your point, you know, nothing official, and and uh you know, we'll we'll see what actually uh comes out, but at least if we can get an extension beyond uh the first of the year and into the first few months, at least we can keep projects you know going, and we don't have to like do a hard stop um should we not get this extension.

Right.

Okay, thank you.

All right, thank you all very much.

Thank you.

Appreciate it.

Merry Christmas to everybody.

Thank you all very much for your hard work to the city too.

All right, so um items two and three will be deferred to 1230, item four will be deferred to one eight, and then that brings us to items five and six, where there are substitute resolutions.

Council members, we need to withdraw resolution R25672.

The order.

We have substitute resolution or 25672.

Uh Councilmember Jerusalem by request approving and ratifying the release of six million four hundred and ten thousand three hundred and eighty-two dollars and forty-five cents from the City of New Orleans employee emergency payroll fund to cover the cost of payroll related expenses for city employees, other than police and fire departments for the payroll period beginning December 7, 2025 and ending December 20th, 2025.

The foregone authorizations shall be subject to concurrence by the Louisiana legislative auditor in occurrence with city code 70-415.347D.

We need to suspend the rules to receive this resolution.

Some move, second by council member morale.

Seven yes and nays, Mr.

Burnside.

I uh looked yesterday, and the substitute resolutions are not part of the electronic record, only the resolutions are, which means they're X's instead of numbers available to those who choose to look at the electronic record.

It would be nice if the substitute motions were included in the electronic record.

Thank you.

With regards to the rest of it.

The city has seemed to use the same number in its estimates.

So the 11 number 11,361,025 and two cents has apparently been the same in resolutions number R25, 611, R25, 612, and R25672, all of which are substitute resolutions.

Whereas the amount of money given by the legislative auditors seems to have changed somewhat, for example, on resolution 25, 612, the legislative auditors saw a fit to okay six million five hundred and thirty-nine thousand ninety-seven dollars and ninety-one cents.

For example, on resolution 25612, the legislative orders saw a fit to okay $6,539,000 $97.91.

Whereas in subsequent resolution 25672, he's only okaying six million four hundred and ten thousand three hundred and eighty-two and twenty-five cents.

So the question stands: why is the city giving us the same numbers?

What how are the city generating these numbers?

Why are they constant even though payroll is changing?

I know people, for instance, who have resigned from the law department and left for uh greener pastures.

So surely the payroll is actually changing.

And for us to be given the same numbers all the time seems somewhat uh lazy at best.

So the other thing I want to mention briefly, I'm about five seconds left.

Exhibit C does not include police department.

Thank you.

I moved seconded by Councilmember Morrell.

Seven years no nays.

We have resolution R25673 is withdrawn.

It's ordered.

We have substitute resolution R25673 by Councilmember Jerusal by request, approving and ratifying the release of 5,278,558 from the City of New Orleans employee emergency payroll fund to cover the payment of the French benefits and other payroll related expenses for the payroll period beginning November 30, 2025 and ending November 13, 2025.

The foregoing authorization shall be subject to concurrence by the Louisiana legislative auditor in accordance with City Code 70-415 point 347.

We need to suspend the rules to receive this resolution.

So move seconded by Councilmember Morrell.

Mr.

Burnside.

So in regards to substitute motion 673 vice 613.

So we have again the same number, right?

19,604,36917 given to us by the city.

It's the same for both pay periods, even though things have changed.

Certainly the legislative auditor has given us different amounts of money, but the point of the matter is he's given us significantly less money.

If you look at resolution 25673 in conjunction with resolution 25613, those two numbers add up to 10,533,000, something or another, something or another.

And we come back to the discussion of the status of the general fund, whether it's shrinking, whether it's rising, or whether it's just stable.

And I think that I'm really tired.

Oh, yeah, estimating up to a lady came over and discussed with me uh a week ago about this concept called estimating up to, which is the letters of the English language in front of the numbers.

According to her presentation to me, estimating up to basically means that you can be off by half a million dollars, or you can be off by a million point one.

It doesn't seem to really matter to her how far off she is.

I would suggest in brief, I sent a long email, that uh you would include some sort of error bar or some sort of bracket of range where these numbers have validity.

Because quite frankly, if you're giving us a number down to the pity penny, you are implying a certain precision that's factually untrue and can lead people astray in their sets of assumptions.

Thank you very much.

Thank you, Mr.

Burnside.

All right, I'll move to approve the substitute resolution, seconded by councilmember Morrell.

One more.

Um happy holidays, happy festivists, happy Christmas.

Motion to adjourn.

Right where we have first reads.

Do we have first reads?

No, first reads, you guys are two angles.

All right.

Motion to adjourn.

Second.

Second by council member green, all in favor.

Aye, we are adjourned.

Thank you.

Merry Christmas, happy Hanukkah, and happy quantum.

Hanukkah's over.

It sure is.

That's right.

So Merry Christmas.

Merry Christmas and happy quantum.