Budget/Audit/Board of Review Committee Meeting - February 25, 2026
Budget/Audit/Board of Review Committee Meeting - February 25, 2026
The Budget/Audit/Board of Review Committee of the New Orleans City Council met on Wednesday, February 25, 2026, at 1:00 PM. The meeting covered a dire budget update, including a $126 million spending deficit for 2025, cash flow challenges, and the repayment of a $125 million Revenue Anticipatory Note (RAN). The committee also considered two capital budget reallocations, received a presentation on NOPD Crime Lab staffing, and discussed the financial outlook for sanitation services and the SPCA.
Consent Calendar
- Approval of Minutes (January 22, 2026): Moved by Councilmember Freddie King, seconded by Aimee McCarron. Approved 3-0 (Councilmembers Matthew Willard and JP Morrell absent).
Discussion Items
- Budget Presentation (CAO Joe ): The CAO reported that the city's cash on hand as of February 21 was approximately $27.5 million, down from $29 million the prior week. He highlighted that property tax collections stood at only 29% of the budgeted amount and sales tax at 10%, partly due to timing of Mardi Gras and delayed property bills. The 2025 general fund deficit reached $126 million (budgeted $90 million), with personnel costs exceeding projections by $72 million. The city faces a requirement to repay a $125 million Revenue Anticipatory Note (RAN) plus interest by March 2, 2026, with another RAN expected later in the year. Efforts to control spending include a hiring freeze, furloughs achieving $4.2 million (target $6.7 million), elimination/consolidation savings of $7.2 million, and avoiding layoffs. New revenue initiatives include centralizing grants (estimated $20 million in reimbursements within 60 days), improving parking collections (over 1,300 boots deployed yielding nearly $500,000), and raising fines/fees not updated since 2011–2014.
- 2025 Year-End Financial Report (Director of Finance Alyssa Rambeau): Preliminary unaudited results show general fund revenues at 98% of budget, but total expenses exceeded budget by $21.6 million. The consolidated fund balance fell from $205.6 million to $60.5 million, a deficit of $145 million. The vacancy rate was 7% (345 unfilled positions). Rambeau proposed streamlining budget reports and eliminating the detailed FTE report.
- NOPD Crime Lab Staffing (Dr. Shamika Kelly, Director; Deputy Chief Nicholas Vernon): Dr. Kelly explained that outsourcing approximately 400 DNA cases per year costs about $1.5 million (at $1,150–$4,000 per case depending on type), plus trial testimony costs of $10,000–$15,000 per case. An in-house lab would process cases for about $2,400 each, yielding potential annual savings and revenue generation of up to $483,000. The positions needed (e.g., DNA Technical Leader, Latent Print Supervisor) are unfunded and require council approval. The committee deferred action to the next budget meeting.
- SPCA Funding and Operations (Councilmember JP Morrell): Councilmember Morrell raised concerns about the city’s Cooperative Endeavor Agreement (CEA) with the SPCA via an LLC (NOHLR), including depreciation charges on vehicles the city purchased, a $444,189 management fee, and a $627,000 overhead fee. He noted that the city has repeatedly tried to work with the SPCA to raise the rabies fee but received delayed responses. The SPCA’s unrestricted fund balance of $4 million was contrasted with city budget cuts. The CAO confirmed the city has been proactive and that the SPCA is currently out of compliance with its CEA requirement to be open five days a week.
- Sanitation Budget Deficit: The CAO acknowledged that sanitation expenditures exceed fee revenue by tens of millions of dollars annually—estimated at $20–25 million per year—due to contract increases and expanded services since 2012. A one-page explainer for the public was requested by several councilmembers.
- Parking Contract RFI: The CAO noted a 45-day RFI was issued on Lundi Gras (February 16) to replace the current dysfunctional parking payment system. Councilmember Morrell emphasized the need for user-friendly technology over lowest-cost bids.
- Other Updates: The city is hiring a controller for NOPD; interviews took place on February 24. Overtime spending is under budget so far; February 2026 overtime is $2.1 million compared to $7.5 million in February 2024. Healthcare costs jumped $19 million in 2025. The city recovered $500 unused WebEx subscriptions saving $7,000/month.
Key Outcomes
- Cal. No. 35,336 (DPW Bond Reallocation): Ordinance to de-appropriate and re-appropriate $6,250,000 within the Department of Public Works, moving bonds from completed or paused projects to the DPW Infrastructure Team and Equipment project. Moved by JP Morrell, seconded by Lesli Harris. Approved 4-0 (Councilmember Freddie King absent).
- Cal. No. 35,337 (Parks and Parkways Bond Transfer): Ordinance to de-appropriate $750,000 from Property Management and Sanitation and appropriate it to the Department of Parks and Parkways for the Louis Armstrong Park Master Plan. Moved by JP Morrell, seconded by Aimee McCarron. Approved 4-0 (Councilmember Freddie King absent).
- Civil Service Pay Plan and Rule Amendments: All items (M-25-182 through M-26-84) were deferred to the regular council meeting on March 12, 2026.
- NOPD Crime Lab Positions: Held for further discussion at the next Budget Committee meeting.
- Meeting Adjournment: Moved by Aimee McCarron, seconded by JP Morrell. Adjourned 4-0.
Meeting Transcript
Councilmember McCarran. Here. Councilmember King, we have a quorum. Let's go ahead and uh start with the approval of the minutes from the January 22nd budget committee meeting. Councilmember King moves. Council McKaren seconds. All in favor? Three A's. The minutes are approved. SAO Jerusalem, we're gonna take uh Dr. Kelly out of order because she has another uh event to attend. So Dr. Kelly, if you want to come on up and we can talk about item number seven, Ashley, if you could read item number seven, that would be great. Sure. Item number seven encompasses a bunch of civil service pay plan and rule amendments that have been approved by the Civil Service Commission. I believe Dr. Kelly is here to talk specifically about the civil service motions that affect the police, the NLPD Crime Lab, and that's motion 7E, G, H, J, and possibly K. Thank you. If you all would introduce yourselves, Dr. Kelly and uh Commander Gernon. Hi everyone, I'm Dr. Shamika Kelly. I'm the director of the NOPD Crime Lab, and with me is Deputy Chief Nicholas Vernon. Sorry, I called you Commander. That's okay. Um Dr. Kelly, I I called you here because I want to talk about our DNA lab and specifically the positions that have been pending on the civil service side for approval to get the DNA lab up and running. Can you talk about the history of what we've done in the past to outsource our sexual assault kits and then go from there and talk about why you need these positions and how they could potentially make money for the city? Okay, yeah. So historically, we have outsourced approximately 400 or so cases annually. So what happens now because we don't have a functioning DNA lab, the laboratory will uh send any or the NOPD will send any cases that need DNA testing to Louisiana State Police Crime Lab, who then will outsource those to a private contracting laboratory. And so what we've done in-house is try to build uh a DNA lab in-house so that we can remove that dependency. Um and in doing so, what we're looking at is matching or decreasing the amount of money that it would take to do that. So one of the things that was asked of me was to kind of compare the cost. So looking at how much outsourcing costs versus how much it would cost to build your own program. And what I've calculated based on estimations that I've received from the Louisiana State Police Crime Lab in the past is that approximately 400 cases will cost about 1.5 million dollars. That is for again 400 or so cases. The cost per case depends on what crime type it is, but if it's a property crime, it's 1,150 dollars. If it's sexual assault, it'll be 3,000 and then 4,000 for a homicide. I'm sorry I had that flipped. It's 4,000 for the sexual assault and 3,000 for the homicide cases. In-house, um, I'm sorry, that would total 1.5 million, but on top of that, what you would also have to consider is paying for adjudication. So each case that goes to trial costs approximately 10 to 15,000 additional dollars to have someone flown in to testify. And so considering that you're looking at about three million per year for outsourcing costs totally. Now, comparing that to in-house cases, calculating all of the wages, benefits, overhead, maintenance, equipment, reagents included in per case, comparing apples to apples, it's about $2,400 to process a case in-house here in New Orleans whenever we build our DNA lab. Now that equates to, if we're looking at 400 cases in totality, that equates to less than a million annually for you to process the same amount of cases. Now, what we've been able to do in-house is build a very high throughput system internally, and so we will have the capacity to test more than 400 cases. So that leaves room for potentially testing more case types in-house because keep in mind not everything goes to LSP, the Louisiana State Police Crime Lab. Because of that, we can test more in-house, or we have the option to um take cases from different jurisdictions. So if we were to do something like that, um I've calculated that the total revenue could generate approximately 360 to about 483 dollars.
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