OPENPUBLICA · PUBLIC MEETING RECORD
Record of Proceedings

Joint Budget and Governmental Affairs Committee Meeting - August 5, 2026

City Council — Wednesday, August 5, 2026
BodyNew Orleans, Louisiana
SessionCity Council
DateWednesday, August 5, 2026
StatusNEW · FILED
Video Record
0:00 / 2:51:09
Transcript — Verbatim
27:43

Good morning.

27:49

Councilmember Harris.

27:51

Here, Councilmember McCarron.

27:53

Here, Councilmember Willard.

27:54

Councilman Hughes.

36:12

Everybody here is saying the same.

36:15

Councilmember, if you want to move to come out of executive session, second.

36:19

Seconded by Councilmember He's all in favor?

36:22

Uh folks are gonna take uh this a bit out of order.

36:25

We're gonna go to item number seven, which is the CAO budget presentation and financial update.

37:10

Council members, good morning.

37:12

Thank you for having us today.

37:14

Um I know you all specifically requested this information, so I appreciate you working with us and providing a forum to explain things um that are important for the city of New Orleans and where we all think we're headed together.

37:29

Um as you know, uh we're gonna talk about where we've been, where we are, and where we're going.

37:36

So in terms of strategy solutions and um solvency, I did think it was important to start with a chronology, because unfortunately I think people have a tendency to forget the past or rewrite history, and so since I and you have lived this, I think it's important to do that and and to do it in some detail.

37:58

Some of these slides, as usual, you know, I spend more or less time on.

38:01

This is what I'm going to spend more time on.

38:05

Council will remember that in November of twenty twenty-five, Councilmember Morrell, then Councilmember Moreno and I went to Baton Rouge to seek a revenue anticipation note in order to make payroll through the end of twenty twenty-five.

38:23

Now, that is important not only because of the fact that the revenue anticipation note was sought, but also because at that time we said the auditor said, and even the state said that they expected the city to be back because we would run out of cash at some point in twenty twenty-six, whether that was in the summer or whether that was in the fall.

38:49

So this has been a known thing that the city would likely run out of money, and it was and it was not something that crept off either on the administration or on the council.

39:02

This has been eyes wide open and a matter of vigilance with everybody.

39:06

I just want to be clear.

39:19

We highlighted that yeah.

39:22

I think um I think the mayor actually uh put that clip on social media.

39:26

You're exactly right.

39:28

So then um after coming off the revenue anticipation note, the council worked extraordinarily hard because the last administration submitted a budget to the council that had 30% across the board cuts.

39:41

And the last council said, we're not comfortable with doing that.

39:45

What can we do in order to try and fix this problem?

39:48

And really in the span of three weeks, um uh mayor elect Moreno sort of demanded that the transition team find additional funds.

40:00

And we were able to find about $75 million in primarily one-time funding.

40:04

Now why do I say primarily?

40:06

Because some of the funding is parking expenses, which are one time, but some of which are recurring.

40:14

But the rest of the money using ARPA is one time, having recurring Sujin Waterboard reimbursable, that $29.5 million was one time.

40:26

And the amount of WISNER money we got, roughly about $11 million was one time.

40:32

But there is recurring revenue from WISNE that will be a little bit less than that going for.

40:43

We, the administration, came and presented about our cash management model in March of 2026.

40:51

And what I think the council will remember and the public should remember is that the cash management model did two things.

40:58

Number one, it showed where the administration planned to get $100 million and where we planned on infusing $100 million between April and July.

41:11

And if my memory serves, and Alyssa correct me if I'm wrong, what the report showed was that as we got money in, we would infuse roughly $20 million into the budget in April, $30 million into the budget in May, $20 million into the budget in June, $30 million in July, getting to $100 million.

41:32

As that starts to resolve itself, in the spring, we are able to do a few things.

41:41

We're able to actually significantly increase the cash management fund, which I'll discuss in more detail.

41:48

The mayor initiates with New Orleans Building Corporation, Caesar's renegotiation, and the ability to receive $100 million, which now has drastically increased the unassigned fund balance and largely puts us over what bonds, sorry, what the rating agencies are looking for to make sure we have enough cash on hand.

42:12

And also what our long-term borrowing plan looks like.

42:17

And again, I'll discuss that in more detail, but I think I think we all know that means borrowing against the general alimony millage.

42:24

Now I'm going to take a pause right here.

42:28

For those of us who serve together, one indelible message I learned from the last administration is that you can never just have an A plan.

42:37

You need an A, B, and C plan.

42:40

And so at least by this point, the mayor and I are discussing what happens if things go awry with State Bond Commission for whatever reason, obviously not being able to forecast what happened in this situation, but having a backup plan.

42:56

And from information gained both during getting the initial $75 million and continued follow-up with agencies, how if we needed to get to this point, we would do it.

43:21

But also that we all sat down and within three weeks found $100 million.

43:26

I've seen that narrative in both social and mainstream media, and it's distressing because this did not happen overnight and involved a lot of hard work from both the council and the administration.

43:52

And then obviously we're here at the beginning of August to talk about those strategies.

44:10

One time revenue was anticipated to be $75 million.

44:14

We've brought in $125 million.

44:17

The cash management fund was built to be $100 million.

44:21

We're at over $130 million at this point.

44:25

And of course, I've mentioned the Caesars deal already.

44:49

Making sure everything is being accomplished, making sure that city services are being delivered in the manner in which they need to be.

45:00

And so below, Abby has laid out the cash management funds for not the $100 million, but roughly the $131 million that the administration cobbled together, and particular thanks to the council for the work both with the assessor and with municipal and traffic board.

45:18

But you'll see Suge and Waterboard reimbursements.

Discussion Breakdown — Share of Meeting
Fiscal Sustainability█████████████████████████████████████████41%
Public Engagement███████████████15%
Public Safety████████████12%
Procedural██████████10%
Budget Equity Analysis██████████10%
Technology and Innovation██████6%
Short Term Rentals██2%
Code Enforcement██2%
Water And Wastewater Management█1%
Summary of Proceedings

Joint Budget and Governmental Affairs Committee Meeting - August 5, 2026

The Joint Budget and Governmental Affairs Committee met on August 5, 2026, starting at 9:30 AM. The meeting featured a detailed budget presentation from the Chief Administrative Officer (CAO) outlining the city's financial crisis, proposed solutions, and a $125 million projected budget gap for 2027. The committee also considered an ordinance requiring monthly and quarterly drone reporting by the New Orleans Police Department (NOPD), approved an extension of a contract for armed security services at municipal facilities, and voted on several board and commission appointments. An executive session was held regarding pending litigation in Stanton Square, LLC v. City of New Orleans.

Consent Calendar

  • Approval of Minutes: The committee approved the Budget Committee meeting minutes of July 15, 2026, and the Governmental Affairs Committee meeting minutes of July 22, 2026.

Executive Session

  • The committee entered executive session to discuss Stanton Square, LLC v. City of New Orleans, Case No. 23‑5733, pending in the U.S. District Court for the Eastern District of Louisiana. No further details were disclosed publicly.

Public Comments & Testimony

  • Edith Romero (IO Surveillance) expressed strong support for the drone reporting ordinance but urged the council to include penalties for non‑compliance, demographic data collection, and a complaint mechanism. She noted that NOPD had previously failed to report drone flights and changed their policy to put weapons on drones without public knowledge.
  • Dr. Sunny Moon expressed alarm over the potential use of drones for psychiatric emergencies and called for clear protocols. She also highlighted past NOPD misconduct, including domestic violence and overtime fraud, and stated that 70% of NOPD drone flight documentation for 2025 was missing.
  • Alexandra Jaoosh thanked Councilmember Willard for the ordinance but stated it was the bare minimum given NOPD's history of non‑compliance and the secret weaponization clause.
  • Morgan Clevinger (Police Community Advisory Board) supported the ordinance but noted the premature lifting of the consent decree and the erosion of trust. She called for stronger accountability measures.
  • Sarah Whittington (ACLU of Louisiana) stated the organization was appalled by June/July policy changes that removed reporting requirements. She noted that NOPD had not been complying with prior rules and changed the policy to avoid accountability. She supported the ordinance but stressed it barely meets state law (Act 450) and called for full data disclosure.
  • Russell Craig (citizen/former auditor) asked whether the city would cut the expensive Civics staff augmentation contract (approximately $21.5 million) given the budget crisis. Brandy (staff) responded that the contract is in litigation and they would review scope of work.

Discussion Items

CAO Budget Presentation

CAO Joe Jerusalem and Finance Director Alyssa presented a comprehensive financial update. Key points included:

  • Background: The city faced a cash crisis as predicted in November 2025, leading to a $75 million one‑time revenue infusion from the last council and administration. The current administration has since brought in $125 million in one‑time revenues (exceeding the $75 million target).
  • Cash Management: The cash management fund reached over $130 million (target was $100 million). As of July 31, 2026, the city had $38.7 million in cash, partly due to paying back the Revenue Anticipation Note (RAN) and unexpected expenses.
  • Inherited Obstacles: Issues included unreconciled grants (e.g., National Disaster Resiliency Grant not reconciled since 2019), short‑term rental fund showing $10 million but only $3 million available, improper accounting for health insurance and debt service, and terminal leave exposure of $91 million if all eligible employees retired immediately.
  • Proposed Solutions for 2026:
    • Bond eligible expenditures of $35 million (reimbursing the general fund for past capital expenditures paid from operating funds).
    • ARPA reclassification of up to $5.5 million.
    • Requesting $20 million (reduced from $34 million owed) from the Sewerage & Water Board (S&WB); $15 million of that is from federal reimbursements. A payment of $4.4 million was received just before the meeting, reducing the request to $16 million.
    • Federal grant reimbursements averaging $3–5 million per month (up to $25 million total).
    • Use of up to $25 million from the Rainy Day Fund as a last resort, with immediate repayment from property taxes.
    • Additional savings from a 25% cut in overtime ($4 million), bonding out GO Zone funds ($16.4 million potential), and reviewing fee structures.
  • 2027 Outlook: Assuming recurring revenue of $725 million and estimated costs of $850 million, a budget gap of $125 million is projected. Cuts are definite; revenue measures (fee increases, amnesty programs, enforcement) can reduce the gap. Furloughs generate only about $4 million.
  • Bond Rating: The city maintained its bond rating; one agency did not downgrade after reforms. The CAO noted the recent bond sale produced a $7 million premium.
  • Other Topics: Discussion on parking enforcement, short‑term rental fee increases, micro‑purchases, civilizing positions, and reducing outside contracts.

Ordinance on Drone Reporting (Ord. Cal. No. 35,523)

Councilmember Willard introduced an ordinance to amend City Code sections 2‑61 and 2‑62 to require periodic reporting by NOPD on drone usage. The committee first suspended rules to add an amendment requiring monthly reporting on agencies requesting drone deployment and identification of supervising officers. The amendment was adopted unanimously. The ordinance itself was then discussed; it mandates monthly reports to the city council and quarterly reports to the Criminal Justice Committee, along with disclosure of changes to the drone program and safety concerns. Councilmember Willard stated the goal is transparency and thanked NOPD for collaboration.

Contract Amendment for Armed Security (AlliedUniversal)

The committee considered Amendment No. 8 to the contract with Universal Protection Service, LLC (dba AlliedUniversal) for armed security services at municipal facilities. The amendment extends the contract through December 31, 2026, with a maximum compensation of $3,000,000. It was approved without discussion.

Boards and Commissions Appointments

  • New Orleans Redevelopment Authority (NORA): Arkebia Matthews was appointed. She stated her focus on transparency, equity, and community stability.
  • Alcoholic Beverage Control Board: The appointments of LaTanja Silvester and Earl Williams were deferred to the next meeting.
  • New Orleans Public Library Board: Cressida L. Rhodes‑Polk was appointed. She emphasized her background in education and strategic governance.

Key Outcomes

  • Drone Reporting Ordinance (Ord. Cal. No. 35,523): Passed unanimously with the amendment. The ordinance requires monthly and quarterly reports from NOPD on drone usage, including requests from other agencies and supervising officers.
  • AlliedUniversal Contract Amendment: Approved unanimously, extending security services through December 31, 2026, at $3 million.
  • Board Appointments: Arkebia Matthews (NORA) and Cressida L. Rhodes‑Polk (Library Board) were approved. LaTanja Silvester and Earl Williams (ABC Board) were deferred.
  • Budget Direction: No formal vote was taken, but the committee acknowledged the CAO’s plan and committed to working on cuts and revenue measures to close the 2027 budget gap. The council will continue discussions on fee increases, amnesty programs, and enforcement improvements.

Meeting Transcript

Good morning. Councilmember Harris. Here, Councilmember McCarron. Here, Councilmember Willard. Councilman Hughes. Everybody here is saying the same. Councilmember, if you want to move to come out of executive session, second. Seconded by Councilmember He's all in favor? Uh folks are gonna take uh this a bit out of order. We're gonna go to item number seven, which is the CAO budget presentation and financial update. Council members, good morning. Thank you for having us today. Um I know you all specifically requested this information, so I appreciate you working with us and providing a forum to explain things um that are important for the city of New Orleans and where we all think we're headed together. Um as you know, uh we're gonna talk about where we've been, where we are, and where we're going. So in terms of strategy solutions and um solvency, I did think it was important to start with a chronology, because unfortunately I think people have a tendency to forget the past or rewrite history, and so since I and you have lived this, I think it's important to do that and and to do it in some detail. Some of these slides, as usual, you know, I spend more or less time on. This is what I'm going to spend more time on. Council will remember that in November of twenty twenty-five, Councilmember Morrell, then Councilmember Moreno and I went to Baton Rouge to seek a revenue anticipation note in order to make payroll through the end of twenty twenty-five. Now, that is important not only because of the fact that the revenue anticipation note was sought, but also because at that time we said the auditor said, and even the state said that they expected the city to be back because we would run out of cash at some point in twenty twenty-six, whether that was in the summer or whether that was in the fall. So this has been a known thing that the city would likely run out of money, and it was and it was not something that crept off either on the administration or on the council. This has been eyes wide open and a matter of vigilance with everybody. I just want to be clear. We highlighted that yeah. I think um I think the mayor actually uh put that clip on social media. You're exactly right. So then um after coming off the revenue anticipation note, the council worked extraordinarily hard because the last administration submitted a budget to the council that had 30% across the board cuts. And the last council said, we're not comfortable with doing that. What can we do in order to try and fix this problem? And really in the span of three weeks, um uh mayor elect Moreno sort of demanded that the transition team find additional funds. And we were able to find about $75 million in primarily one-time funding. Now why do I say primarily? Because some of the funding is parking expenses, which are one time, but some of which are recurring. But the rest of the money using ARPA is one time, having recurring Sujin Waterboard reimbursable, that $29.5 million was one time. And the amount of WISNER money we got, roughly about $11 million was one time. But there is recurring revenue from WISNE that will be a little bit less than that going for. We, the administration, came and presented about our cash management model in March of 2026. And what I think the council will remember and the public should remember is that the cash management model did two things. Number one, it showed where the administration planned to get $100 million and where we planned on infusing $100 million between April and July. And if my memory serves, and Alyssa correct me if I'm wrong, what the report showed was that as we got money in, we would infuse roughly $20 million into the budget in April, $30 million into the budget in May, $20 million into the budget in June, $30 million in July, getting to $100 million. As that starts to resolve itself, in the spring, we are able to do a few things. We're able to actually significantly increase the cash management fund, which I'll discuss in more detail. The mayor initiates with New Orleans Building Corporation, Caesar's renegotiation, and the ability to receive $100 million, which now has drastically increased the unassigned fund balance and largely puts us over what bonds, sorry, what the rating agencies are looking for to make sure we have enough cash on hand. And also what our long-term borrowing plan looks like. And again, I'll discuss that in more detail, but I think I think we all know that means borrowing against the general alimony millage. Now I'm going to take a pause right here. For those of us who serve together, one indelible message I learned from the last administration is that you can never just have an A plan. You need an A, B, and C plan. And so at least by this point, the mayor and I are discussing what happens if things go awry with State Bond Commission for whatever reason, obviously not being able to forecast what happened in this situation, but having a backup plan. And from information gained both during getting the initial $75 million and continued follow-up with agencies, how if we needed to get to this point, we would do it. But also that we all sat down and within three weeks found $100 million.

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