New Orleans City Council Special Meeting on January 28, 2026: Payroll Reports and Data Center Moratorium
New Orleans City Council Special Meeting – January 28, 2026
The New Orleans City Council held a special meeting on January 28, 2026, from 9:00 a.m. to 10:38 a.m. to receive reports from the Louisiana Legislative Auditor on payroll and retention payments, adopt a substitute resolution releasing emergency payroll funds, and take initial steps to regulate data centers through comprehensive zoning amendments and an immediate citywide moratorium. Councilmembers present were Green, Harris, Hughes, King, and Willard (Vice President); Councilmembers McCarron and Morrell were absent at the start. Morrell later arrived for the vote on Motion M-26-62.
Reports from the Louisiana Legislative Auditor
- Item 1: The Legislative Auditor, Michael Waguespack, presented a report on the city’s $125 million Revenue Notes (RAN) in accordance with State Bond Commission terms. As of January 28, a preliminary review indicated that the city’s request of $5,546,487.10 for the payroll period ending January 24, 2026, was in order. The amount covers employee compensation and related taxes for police, fire, and certain weekly-paid employees. The auditor noted that overtime pay in this period was $375,000 less than projected, and that after this processing the RAN balance would be roughly $13 million, sufficient to cover payroll through February 18, 2026. The council voted unanimously (5–0) to suspend the rules to receive the report and add it to the agenda.
- Item 2: A second report reviewed proposed retention payments totaling $9,516,213.56 for police and some EMS personnel under previous motions (23-305, 23-42, 22-326). The auditor identified six individuals who did not qualify, reducing the total by $57,318.30, resulting in a gross payroll of $9,458,895.26. The council also voted unanimously (5–0) to suspend the rules to receive and add this report.
Resolution for Emergency Payroll Fund (Substitute R-26-64)
- The original resolution (R-26-64) was withdrawn, and a substitute was introduced by Councilmember Harris. It approved and ratified the release of $5,546,487.10 from the City of New Orleans Employee Emergency Payroll Fund for the pay period January 11–24, 2026, covering police, fire, and certain weekly-paid employees, subject to concurrence by the Louisiana Legislative Auditor. The council voted unanimously (5–0) to suspend the rules, add, and adopt the substitute resolution.
Discussion on Data Centers – Motions M-26-62 and M-26-63
- Councilmember Hughes and Council President Morrell introduced two related motions to address the absence of a definition for “data center” in the Comprehensive Zoning Ordinance (CZO) and to prevent a proposed data center in New Orleans East. City Planning Commission Director Bob Rivers testified that currently data centers are not defined and therefore not permitted anywhere in the city, but ambiguity exists. Chief Zoning Official Dan McNamara described a case where a developer applied for an “office space with computers,” which raised concerns about loopholes.
- Motion M-26-62: Directs the City Planning Commission to hold a public hearing to define data centers and related uses, consider where they should be permitted or conditional, and develop use and design standards (including density, soundproofing, and safety). The motion passed 6–0 (with Morrell present).
- Motion M-26-63: Establishes an Interim Zoning District (IZD) called the Data Center Interim Zoning District, effective immediately for one year, prohibiting the issuance of occupational licenses or permits for data centers citywide. The council can extend the IZD for up to two additional six-month periods. The motion passed 5–0 (Morrell absent).
Public Comments on Data Centers
- Multiple residents of New Orleans East spoke in opposition to data centers, citing concerns about energy and water consumption, infrastructure strain, noise, and environmental impacts. Speakers including Xavier Wilson, Olsa Adun, Dawn Abear, and others urged the council to block data centers outright. Frank Scarlock and John Brown called for more information and careful consideration, with Scarlock suggesting that technology investment could benefit the city. Representatives from the Sierra Club expressed concern that the IZD’s appeals process could create a “backdoor” for data centers, a claim vigorously rebutted by Council President Morrell, who explained that the appeals process is required by charter and would involve public hearings. The council acknowledged the public’s input and committed to further community engagement.
Ordinances on First Reading
- Calendar Number 35,331 (by Councilmember McCarron by request) was introduced and laid over as required by law. It would amend the 2026 operating budget to move funds from the City Council to the Department of Public Works for street light replacement and maintenance.
Key Outcomes
- Payroll Reports: Received and accepted unanimously (5–0).
- Substitute Resolution R-26-64: Adopted unanimously (5–0) to release $5,546,487.10 from the Emergency Payroll Fund.
- Motion M-26-62: Adopted (6–0) to direct the City Planning Commission to hold a public hearing on defining and regulating data centers.
- Motion M-26-63: Adopted (5–0) to establish a one-year Interim Zoning District (IZD) prohibiting data center operations citywide, with potential extensions.
- Ordinance on First Reading: Introduced and laid over for future consideration.
- The meeting adjourned at 10:38 a.m. after a brief procedural motion to reconsider the adjournment vote to allow the introduction of the ordinance.
Meeting Transcript
Madam Clerk. I received a letter November 14, 2025. Dear Madam Clerk, pursuant to my authority in section three dash one hundred seven five of the home rule charter of the city of New Orleans. These meetings will be limited to the discussion and consideration of matters relative to the current financial condition of the city, including without limitation the status of the general fund and any changes to be expected revenue of funding and ordinance number thirty thousand five twenty-two and any other matters that may properly come before the city council. As usual, we will have the legislative auditor come up and report to us on payroll. We need to suspend the rules to receive the first report from the legislative auditor. I'll move to suspend. Seconded by Council Vice President Willard. One more vote. Five years. And we need to suspend the rules to add it to the agenda. I'll move Councilmember King seconds. All in favor? Five years. We need to suspend the rules to add a second communication from the legislative order. I'll move. Council Vice President Willard seconds. All in favor. All right. And we need to suspend the rules to A. I'll move. Uh Councilmember Green seconds. All in favor. Aye. You could just legislative auditor have the floor. Good morning. Good morning. Good morning. Mike Waggisback, Louisiana Legislative Auditor. Today, January 28th, we're here in accordance with the state bond commission terms and conditions for the approval of the City New Orleans 125 million dollar revenue note. And as of today, uh our preliminary review indicates that the city's request totaling five million five hundred and forty-six thousand four hundred and eighty-seven dollars and ten cents is outlined below for the transfer to the JP Morgan account. Um this amount, the five million five forty-six four eighty-seven and ten cents is payable to the Chase payroll card funding account is for the purposes of funding employee compensation and related employee and employer taxes. So if you go to summary A, you'll see the breakdown by police and fire, as well as some weekly payroll of the amount just mentioned. Then we have the breakdown by uh gross earnings on exhibit B showing the overtime pay. I'll note that this overtime pay in this particular pay period is three hundred and seventy-five thousand dollars less than what they projected to spend, which is a good thing. And on exhibit C, we have the year-to-day payroll through uh January 24th, 2026. Uh gross earnings of roughly 29 million and overtime pay just over three million, which is about 10% of the gross. And after this payroll processing, it'll be we'll have a balance of roughly 13 million, but 12 million nine hundred and twenty-nine thousand three hundred and ten dollars. We'll note we had a question in the in the on an account service fee that we uh push back to city finance to check with the bank so that 8,322 and 35 cents was a little unusual for this type of account. So having having researched that, I think the uh the bank is in the process of reversing that that particular error on this count. Uh so we'll get we'll have that money and that'll increase the count by a slight amount. Um I can touch on the if it's appropriate now. Police retention payments. Yeah, hold on for one second. Are there any questions about this? Okay, if you will continue on the police uh retention payments. Yeah, so we spent uh a good part of last week and the weekend reviewing uh all the criteria and those who were eligible for this payment. It's roughly I think 800 folks that qualified, and out of the uh uh we we identified there's a total presented to us of nine million five hundred and sixteen thousand. We identified about six individuals that did not qualify, so we adjusted that down fifty-seven thousand three hundred and eighteen dollars and thirty cents. We sent those to the finance department HR, they concurred.
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