OPENPUBLICA · PUBLIC MEETING RECORD
Record of Proceedings

Joint Budget and Public Works Committee Meeting: August 27, 2026

City Council — Thursday, August 27, 2026
BodyNew Orleans, Louisiana
SessionCity Council
DateThursday, August 27, 2026
StatusNEW · FILED
Video Record
0:00 / 1:58:16

Transcript — Verbatim
0:55

All right, uh it is one in one, and I believe we have quorum of both committees.

1:03

Councilmember Harris.

1:05

Presence.

1:06

Councilmember McKaren.

1:07

Here.

1:07

Council President Morel.

1:09

Councilmember Hughes.

1:10

We do indeed have a quorum.

1:12

The first item of business is the CAO finance presentation on the June 2026 budget reports.

1:18

Great.

1:19

CAU's office, Alyssa, come on down.

1:27

And I apologize, Councilmember Green.

1:43

Yeah.

1:59

Sorry, AD DNA.

2:11

All right.

2:11

Y'all ready to get started?

2:13

Thank you.

2:14

Good afternoon.

2:16

Switch to that next.

2:18

We are presenting here today year to date through June 30th, 30th.

2:24

And of course, this is uh unaudited numbers.

2:28

Um, as you can see here, three June, the city has collected approximately four hundred and fifty-eight million in revenue compared to four hundred and nineteen of the budgeted year to date.

2:41

That puts revenue collections approximately thirty-eight point seven million above the year-to-date budget number.

2:49

We're also approximately fourteen million above the same period this time last year.

2:54

So at this point in the fiscal year, revenue collections are running ahead of the adopted budget.

3:01

Continuing down the report also shows that through June, actual revenues exceed actual expenditures by approximately a hundred and three million dollars.

3:13

The budget director Brandy will provide the detailed discussion on expenditures, but I want to point out what happens when we look at the city's overall fund balance.

3:22

After other financing activities, including transfers, the reported net change in fund balance is approximately 48 million dollars for the year to date.

3:44

Looking at the individual revenue categories, the largest revenue sources are property taxes and sales taxes, followed by service charges, license and permits, and then of course we have our other revenue section.

3:58

Property taxes are approximately three point three million above budget.

4:03

Other taxes are approximately six point three million above budget.

4:09

Licenses and permits are approximately seven million above, and the largest variance is in other revenue, which is approximately twenty-three point five million above.

4:36

Also would like to point out that sales tax is currently above budget, but the report notes that it's slightly below the prior year.

4:44

We expected that, but I just wanted to make sure that you did realize or see that we are below prior year.

4:52

So while we're currently meeting our budget assumptions for sales tax, this is an area we'll continue to monitor as we look to the trends for the rest of the year.

5:03

Sorry.

5:07

Personnel and other operating spending through June 30th, year-to-day personnel and other operating expenditures totaled approximately $354 million, and that represents about 44.3 of the city's operating budget.

5:23

Personnel expenditures, 215.1 million, while other operating totaled 139.3.

5:33

Both categories remain below the year-to-date budget benchmark that shows some of our continued success with expenditures expenditure controls that we continue to have in place with departments, vacant vacancy savings as realized by a hiring freeze, and the timing of departmental operating expenditures.

5:54

As we've stated before, expenditures are not going to happen evenly throughout the year.

5:59

We have different situations where programs or systems may have one-time expenditures.

6:04

Um excuse me, the expenditures are incurred at one time.

6:07

Overtime spending.

6:09

June overtime expenditures totaled approximately 2.1 million, which is approximately 1.3 million below the monthly projection.

6:19

And that's also below June 2025 actual spending.

6:23

And what we've seen here is when there's a better eye on overtime or attention to overtime, better enforcement, better controls in place, we're not going to see as much of an increase in that area.

6:34

For staffing, as of June 30th, the city had roughly 4,500 positions out of 4,700 budgeted positions, which is 214 vacancies.

6:45

And those are not all in general fund.

6:48

Airport is normally a big uh place where we have a lot of those as well.

6:54

And um finally uh looking at fund balance, the report shows a 2025 audited general fund consolidated balance of approximately 67.3 million.

7:08

Then we've got our 211 million dollar unaudited 2026 balance as of June 30th, reported uh resulting in a excuse me, that was reported at 211 million, resulting in a 278 million dollar general fund consolidated balance.

7:28

I just want to put some context around that number again for all those in the audience or listening, is that the 278 million should not be interpreted as unrestricted resources available for the city to spend.

7:41

This is a consolidated balance that incorporates activity across multiple funds and multiple different types of resources.

7:48

It is also unaudited, so I would not use that number by itself to project where we will finish the year.

7:55

The report itself cautions against projecting the year and balance based simply on partial year activity.

8:01

So from the revenue and fund balance productive, there are three things I want y'all to take away.

8:07

First, the collections are currently 38.7 million above the adopted budget.

8:13

Second, the report reflects 278 million dollar general fund consolidated balance, but that number needs to be in understood in the context of multiple funds, transfers, restrictions, and one-time activity.

8:27

It should not be viewed as $278 million of unrestricted resources available for ongoing spending.

8:35

And third, this is June 30th, unaudited point-in-time position, and we will continue monitoring both the composition and sustainability of revenues and the fund balance as we move through the remainder of the year.

Discussion Breakdown — Share of Meeting
Sanitation and Waste Management█████████████████████████████████████████████55%
Personnel Matters█████████11%
Public Engagement█████████11%
Budget Equity Analysis██████7%
Public Safety██████7%
Illegal Dumping███4%
Procedural██2%
Fiscal Sustainability█1%
Recycling█1%
Summary of Proceedings

Joint Budget and Public Works Committee Meeting – August 27, 2026

The Joint Budget and Public Works Committee met on August 27, 2026, at 1:00 PM to review the June 2026 budget reports, consider multiple Civil Service pay plan and rule amendments, and hear a presentation on proposed sanitation fee reforms. The meeting included a presentation from the Chief Administrative Office on the city's financial status, followed by approval of several personnel-related motions and a lengthy discussion on the proposed ordinance to increase sanitation fees. The sanitation ordinance was deferred to the September 3, 2026 City Council meeting.

Consent Calendar

No separate consent calendar was used; however, many civil service items were approved unanimously.

Public Comments & Testimony

  • Chris Lang (resident at 2500 Dauphin Street) expressed unequivocal opposition to the sanitation fee increase. He argued that the city is not addressing inefficiencies in waste contracts, such as overpaying for recycling collection based on all 164,000 households even though many are not opting in, and failing to provide recycling carts to all households. He estimated $12 million in contract inefficiencies.
  • Morgan Clevenger (resident) opposed the October 1 implementation date, citing insufficient community engagement. She questioned contractor profits, the reduction in services since 2011 despite no fee increase, and unresolved data issues. She urged the council to delay the fee increase.

Discussion Items

  1. CAO/Finance Budget Presentation (June 2026)

    • The city collected approximately $458 million in revenue year-to-date, $38.7 million above budget and $14 million above the prior year. Actual revenues exceeded expenditures by about $103 million. The general fund consolidated balance was reported at $278 million, but CAO Joseph Giarrusso cautioned that this is unaudited and includes multiple funds and restrictions, not to be interpreted as unrestricted available cash.
    • Personnel and other operating expenditures totaled $354 million (44.3% of budget). Overtime spending in June was $2.1 million, below projection. The city had 214 vacancies out of 4,700 budgeted positions.

  2. Civil Service Pay Plan and Rule Amendments

    • M-26-40 (Health/EMS – Revised Special Rates of Pay for EMS): Approved 6-0. Added advanced practice paramedic to credential stipend list ($1,500/year) and expanded rescue division eligibility to EMTs and advanced EMTs. Budget neutral.
    • M-26-198 (Health/EMS – Emergency Medical Services Series): Approved 6-0. Provided base pay increases: 2.5% for EMTs/advanced EMTs, 7.5% for paramedics, 5% for coordinator positions. Funded by capturing revenue from reducing reliance on Acadian Ambulance (currently losing $9 million/year).
    • M-26-355 (Chief Administrative Office – Amendment to Civil Service Rules, Annual Merit-based Payments): Approved 6-0. Proposed expanding evaluation ratings from three (exceeds, meets, doesn't meet) to five to allow more nuance. Claude Schlesinger (Fraternal Order of Police) spoke in support, noting historical abuses where merit pay was withheld despite budget surpluses, but also expressed concern about furlough eligibility clauses. CAO Giarrusso added that the change aims to address widespread misuse where departments gave excessive "exceeds expectations" ratings.
    • M-26-44 (Chief Administrative Office – Centralized Adjudication Bureau Administrator): Approved 6-0. Created a position to manage the Central Adjudication Bureau, expected to generate its own revenue and improve consistency in hearings. Councilmember McCarron stressed the need for measurable results.
    • Several other civil service motions (items a-m, o-r, t) were deferred to the October 22, 2026 meeting without discussion or vote.

  3. Sanitation Fee Reform (Amendment to Ordinance No. 35,384)

    • Presented by CAO Giarrusso, Director Matt Torri, Chief Innovation Officer Jonathan Wisbey, and LLA Data Analytics Manager Chris Magee.
    • The sanitation fee has not been increased since 2011, while costs have risen significantly due to new contracts (2022-2024) that include living wages, modern equipment, and enhanced services. The city has been losing about $70 million between 2023 and 2026 due to the fee not covering costs.
    • Proposed increase: residential from $24 to $32.25/month ($8.25 increase), non-residential from $48 to $64.50/month ($16.50 increase). Also includes a new "sanitation strike team" (6 laborers/equipment operators, annual cost $575,000) to address illegal dumping within 24-48 hours.
    • The ordinance also addresses database reconciliation: 12,915 addresses sent to contractors for validation, with a goal to create a unified database by March 2027. The LLA identified approximately 20,000 discrepancies between service locations and billing.
    • Councilmembers raised concerns about: impact on low-income residents and seniors, timing (October 1 implementation), lack of community engagement, need for enforcement against illegal dumping, and the possibility of two-day-a-week trash pickup (not feasible until 2028). Council President Morrell highlighted the lack of transparency in the prior system and emphasized that the fee should directly reflect service costs.
    • The ordinance was deferred to the September 3, 2026 City Council meeting for a vote.

Key Outcomes

  • Votes:
    • M-26-40 (EMS special pay): Approved 6-0 (King absent).
    • M-26-198 (EMS series pay increase): Approved 6-0.
    • M-26-355 (Merit-based payments): Approved 6-0.
    • M-26-44 (CAB administrator): Approved 6-0.
  • Deferrals: Civil service motions a-m, o-r, and t deferred to October 22, 2026. Sanitation fee ordinance deferred to September 3, 2026 council meeting.
  • Directives: Administration to begin communications on free second cart in September; continue working on address validation; explore options for vacant lot fees and short-term rental fee classification. Councilmembers to hold town halls before the vote.
  • Next steps: The sanitation fee vote will occur at the regular council meeting on September 3, 2026.

Meeting Transcript

All right, uh it is one in one, and I believe we have quorum of both committees. Councilmember Harris. Presence. Councilmember McKaren. Here. Council President Morel. Councilmember Hughes. We do indeed have a quorum. The first item of business is the CAO finance presentation on the June 2026 budget reports. Great. CAU's office, Alyssa, come on down. And I apologize, Councilmember Green. Yeah. Sorry, AD DNA. All right. Y'all ready to get started? Thank you. Good afternoon. Switch to that next. We are presenting here today year to date through June 30th, 30th. And of course, this is uh unaudited numbers. Um, as you can see here, three June, the city has collected approximately four hundred and fifty-eight million in revenue compared to four hundred and nineteen of the budgeted year to date. That puts revenue collections approximately thirty-eight point seven million above the year-to-date budget number. We're also approximately fourteen million above the same period this time last year. So at this point in the fiscal year, revenue collections are running ahead of the adopted budget. Continuing down the report also shows that through June, actual revenues exceed actual expenditures by approximately a hundred and three million dollars. The budget director Brandy will provide the detailed discussion on expenditures, but I want to point out what happens when we look at the city's overall fund balance. After other financing activities, including transfers, the reported net change in fund balance is approximately 48 million dollars for the year to date. Looking at the individual revenue categories, the largest revenue sources are property taxes and sales taxes, followed by service charges, license and permits, and then of course we have our other revenue section. Property taxes are approximately three point three million above budget. Other taxes are approximately six point three million above budget. Licenses and permits are approximately seven million above, and the largest variance is in other revenue, which is approximately twenty-three point five million above. Also would like to point out that sales tax is currently above budget, but the report notes that it's slightly below the prior year. We expected that, but I just wanted to make sure that you did realize or see that we are below prior year. So while we're currently meeting our budget assumptions for sales tax, this is an area we'll continue to monitor as we look to the trends for the rest of the year. Sorry. Personnel and other operating spending through June 30th, year-to-day personnel and other operating expenditures totaled approximately $354 million, and that represents about 44.3 of the city's operating budget. Personnel expenditures, 215.1 million, while other operating totaled 139.3. Both categories remain below the year-to-date budget benchmark that shows some of our continued success with expenditures expenditure controls that we continue to have in place with departments, vacant vacancy savings as realized by a hiring freeze, and the timing of departmental operating expenditures. As we've stated before, expenditures are not going to happen evenly throughout the year. We have different situations where programs or systems may have one-time expenditures. Um excuse me, the expenditures are incurred at one time. Overtime spending. June overtime expenditures totaled approximately 2.1 million, which is approximately 1.3 million below the monthly projection. And that's also below June 2025 actual spending. And what we've seen here is when there's a better eye on overtime or attention to overtime, better enforcement, better controls in place, we're not going to see as much of an increase in that area. For staffing, as of June 30th, the city had roughly 4,500 positions out of 4,700 budgeted positions, which is 214 vacancies. And those are not all in general fund. Airport is normally a big uh place where we have a lot of those as well. And um finally uh looking at fund balance, the report shows a 2025 audited general fund consolidated balance of approximately 67.3 million.

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