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OPENPUBLICA · PUBLIC MEETING RECORD

Record of Proceedings

New Orleans City Council Special Meeting – 2027 Executive Budget Address – September 22, 2026

City Council — Tuesday, September 22, 2026

BodyNew Orleans, Louisiana

SessionCity Council

DateTuesday, September 22, 2026

StatusFILED

Video Record

0:00 / 2:21:27

Transcript — VerbatimClick a timed line to jump · ⧉ to share it

1:54

Before we get started, there was an error on the council website.

1:58

The budget meeting will go first, and the meeting that deals with utilities will be after the conclusion of the budget meeting.

2:05

Thank you.

2:05

Madam Clerk, you start when you're ready.

2:07

I received a letter, August 17, 2026.

2:11

Dear Madam Clerk, pursuant to my authority in section three days 1075 of the Home Rule Charter of the City of New Orleans.

2:18

I'm calling a special city council meeting on Tuesday, September 22nd at 10 a.m.

2:24

The purpose of this meeting will be to receive the 2027 executive budget address, as well as any other matter that the council may lawfully consider.

2:32

Please make necessary arrangements.

2:40

And in the future, sincerely, JP Morrell, New Orleans City Council President, Rojal.

2:46

President Moreau.

2:47

Yes.

2:48

Vice President Willard.

2:49

Here.

2:50

Councilmember McCarran.

2:53

Councilmember King.

2:56

Councilmember Green.

2:58

Councilmember Hill.

2:59

We have six members, we have a quorum.

3:03

Thank you very much.

3:12

Thank you, Mr.

3:13

President, and good morning to the City Council and members of the public.

4:02

They want to be working and delivering for the people of the city.

4:05

So before as I mentioned, the CAO goes through all the budget numbers.

4:14

And let me start by saying that we have heard you.

5:00

Families are already having to make difficult choices about what they can afford.

5:05

So as we build the 2027 budget, we have to balance two realities.

5:10

The people of New Orleans deserve better city services, but we also have to respect how difficult it is for people to pay more.

5:19

That balance has guided this 2027 budget.

5:23

And importantly, I do want to say that we are not waiting until 2027 to act on some of the issues that residents have discussed with us.

5:32

Not every improvement requires additional general fund dollars.

5:36

Sometimes it requires better management, sometimes it requires departments to stop operating in silos, sometimes there are capital dollars, grants, federal resources, and other dedicated funds that can do the job instead.

5:50

We approve that despite financial constraints we have faced this year, we have been able to enhance city services in important areas.

5:58

That matters because financial challenges cannot become an excuse for government not to work, but these challenges also can't be ignored.

6:07

And that brings us to the budget before you today.

6:09

This is a tough budget.

6:12

There are significant reductions in it.

6:14

There are choices none of us would make if resources were unlimited, but there is also something very important to relay.

6:22

As difficult as this budget is, our city is in a much stronger financial position today than we were one year ago.

6:32

Last year we were confronting an immediate financial crisis.

6:35

Our cash position was strained, our reserves were under pressure, and the city was relying heavily on one-time money to support recurring expenses.

6:45

We had to act quickly, and we did.

6:47

City government became smaller, overtime was reduced, travel was cut by 90%, offices and positions were consolidated, spending controls were tightened, eligible infrastructure costs were shifted from the general fund to the bond fund.

7:03

Those were difficult decisions, but they helped stabilize our finances and restore our reserves.

7:08

So the challenge that we face today is actually different than what we faced last year.

7:13

Last year we had to make difficult decisions to get out of a financial crisis.

7:18

This year we have to make difficult decisions to make sure that we do not fall back into one.

7:24

That is progress, even if the work ahead still remains hard.

7:28

For 2027, the city has approximately 748 million dollars in recurring revenue compared with projected 2026 expenditures and also the department's 2027 requests.

7:41

That leaves us facing a gap of roughly 100 million dollars.

7:46

Closing a gap of that size cannot be accomplished through just small efficiencies around the edges.

7:51

The proposal before you includes 77.7 million in significant direct reductions, along with approximately 21.5 million dollars in available one-time funding and general fund offsets to prevent even deeper reductions.

8:07

And because we listened to our residents, we made choices about what we would protect.

8:12

So there will be no furloughs in 2027, no cuts to Nord Sea or the Council on Aging.

8:19

We have directed our public safety agencies to protect frontline personnel as much as possible, and we have prioritized the basic services residents told us that matter to them.

8:29

Sanitation, streets and sidewalks, street lights, public safety, and the everyday functions people expect their city government to deliver.

8:38

But there's another side of this conversation.

8:40

We are also presenting options for new recurring revenue that could mitigate some of these reductions.

8:46

And as we consider those options together, we have to keep coming back to the same question.

8:51

What is the right balance for the people of New Orleans?

Discussion Breakdown — Share of Meeting

Budget Equity Analysis█████████████████████████████████████████████51%

Public Engagement███████8%

Public Safety█████6%

Parks and Recreation█████6%

Pension Management████4%

Procedural███3%

Personnel Matters███3%

Fiscal Sustainability███3%

Property Acquisition███3%

Summary of Proceedings

New Orleans City Council Special Meeting – 2027 Executive Budget Address – September 22, 2026

The New Orleans City Council held a special meeting on Tuesday, September 22, 2026, at 10:00 AM to receive the Honorable Helena Moreno's 2027 Executive Budget Address as required by the Home Rule Charter. Mayor Moreno presented a $748 million recurring revenue base facing a roughly $100 million gap, proposing $77.7 million in direct reductions, $21.5 million in one-time offsets, and options for new recurring revenue including a millage roll forward. Council members questioned the CAO about specific cuts, reserves, personnel reductions, and service impacts. Public comment addressed contract transparency, affordable housing, pension obligations, and adjudicated properties. The meeting adjourned at 12:21 PM.

Budget Address Overview

Mayor Helena Moreno emphasized balancing improved city services with residents' ability to pay, noting the city is in a stronger financial position than one year ago due to earlier austerity measures (e.g., 50% overtime reduction, 90% travel cuts, consolidation of offices). She highlighted that the 2027 budget includes no furloughs, no cuts to NORD or the Council on Aging, and protects frontline public safety, sanitation, streets, and streetlights. She presented the budget as the beginning of a collaborative process with the council and public.
CAO Joe DeRusso detailed the budget: recurring revenue of ~$748 million vs. 2026 expenditures and 2027 requests leaves a ~$100 million gap. Proposed reductions total $77.7 million, with $21.5 million in one-time funds (grant reimbursements, CDBG repurposing, neighborhood housing fund). Reserves were rebuilt to ~$138 million (18% of general fund). Personnel reductions include 152 FTEs, but no furloughs for city employees, and the mayor and CAO will continue a 10% pay cut. The budget structurally balances but relies on potential millage roll forward and other revenue measures.

Council Discussion & Questions

Council President JP Morrell noted government grew by over 400 positions from 2016 to 2024 without corresponding service improvements, and criticized past failure to budget for known obligations like retention pay and terminal leave. He stressed that even with proposed new revenues, significant cuts (over $50 million) remain unavoidable.
Councilmember Jason Hughes raised concerns about poor performance of Parks and Parkways (grass cutting, tree maintenance), questioning how the city can ask residents to pay more when current services are inadequate. He requested a list of proposed FTE eliminations and pledged to fight cuts to Fort Pike. He emphasized the median income in New Orleans (~$56,631) and asked for clear math on millage impact on a $100,000 home (east bank: ~$29.55 annually).
Councilmember Lesli Harris queried about pending furloughs, hiring freeze exceptions, health department cuts (especially the low barrier shelter for unhoused people, which could leave 200 people on the streets), and the $7.3 million health department reduction. She also questioned the Mardi Gras cleanup cut and asked for simplified millage impact calculations.
Councilmember Aimee McCarron requested a breakdown of DPW's operating and bond-funded personnel to understand a large cut, and announced two town halls in District A.
Council Vice President Matthew Willard expressed least support for the millage roll forward, asking about a parcel fee as alternative (no preliminary numbers yet). He noted a roll forward would increase taxes even for those with homestead freeze. He also asked about CAO and code enforcement budgets, and confirmed that interest from Caesars and rainy day funds remains in those accounts.
Councilmember Eugene Green asked why the millage was not rolled forward in 2024 (council heard concerns about COVID economic stress and had flush ARPA cash; also learned later that promised fund balances were illusory). He pressed on the clerk of criminal district court funding (state mandates eliminated city obligation) and the $58 million sheriff's budget (largely due to consent decree and state prisoners; he urged working with the state to reduce obligations). He clarified that the CAO was not advocating widespread release of inmates.
Councilmember Freddie King III (arrived later) noted that cuts to the public defender's office could increase jail population and costs. He asked about a total $1.78 million in reductions to youth and juvenile programs, and stressed that the council must consider millage roll forward to avoid severe cuts to basic services.

Public Comments & Testimony

Russell Kelly (Open Window New Orleans) questioned the status of a $21.5 million CIVIX contract (claimed it was not in litigation despite CAO statement) and why a CAO chief management officer position was posted despite a hiring freeze.
Nellie Katzen (Committee for a Better New Orleans) praised transparency but expressed concern that cuts disproportionately affect affordable housing, youth services, and mental health—priorities voiced by the public. She noted that crime reduction has come from root-cause investments, which this budget would undermine.
Morgan Clavinger argued the city has become unaffordable for many, citing massive property tax reassessments in 2019, the COVID recession, and Hurricane Ida. She urged finding other revenue sources (e.g., brake tag office) and keeping residents' struggles front and center.
Bridget Neal highlighted that pension obligations (firefighters' lifetime salaries, unchecked overtime and retention bonuses inflating pension bases) consume a large share of the budget before other services are funded. She warned that a dollar reserve crisis could make these mandatory obligations unsustainable.
Ariana Newman (1735 NOLA) recommended using Section 150-77 of municipal code to sell adjudicated properties to Hurricane Katrina victims, potentially generating revenue and returning blighted property to tax rolls.

Key Outcomes

No votes were taken on the budget itself. The meeting was solely to receive the budget address and begin the deliberative process.
Motions M-26-406 through M-26-413 (recommending capital projects, approving operating budgets for the Aviation Board, Delgado-Albania Plantation Commission, French Market Corporation, Municipal Yacht Harbor, Orleans Parish Communication District, New Orleans Building Corporation, and authorizing technical adjustments to the 2027 budget) were all introduced and continued to the November 19, 2026 meeting.
Ordinances on first reading (Calendar Nos. 35,579 through 35,588) were introduced and laid over as required by law, including matters related to the 2027 millage levy, grant scoring, and conditional use permits. A motion to suspend rules to introduce these passed 6-0 (with one absent).
The meeting adjourned at 12:21 PM by motion of President Morrell, seconded by Councilmember Harris, carried 5-0-2 (Willard and McCarron absent).

Meeting Transcript

Before we get started, there was an error on the council website. The budget meeting will go first, and the meeting that deals with utilities will be after the conclusion of the budget meeting. Thank you. Madam Clerk, you start when you're ready. I received a letter, August 17, 2026. Dear Madam Clerk, pursuant to my authority in section three days 1075 of the Home Rule Charter of the City of New Orleans. I'm calling a special city council meeting on Tuesday, September 22nd at 10 a.m. The purpose of this meeting will be to receive the 2027 executive budget address, as well as any other matter that the council may lawfully consider. Please make necessary arrangements. And in the future, sincerely, JP Morrell, New Orleans City Council President, Rojal. President Moreau. Yes. Vice President Willard. Here. Councilmember McCarran. Councilmember King. Councilmember Green. Councilmember Hill. We have six members, we have a quorum. Thank you very much. Thank you, Mr. President, and good morning to the City Council and members of the public. They want to be working and delivering for the people of the city. So before as I mentioned, the CAO goes through all the budget numbers. And let me start by saying that we have heard you. Families are already having to make difficult choices about what they can afford. So as we build the 2027 budget, we have to balance two realities. The people of New Orleans deserve better city services, but we also have to respect how difficult it is for people to pay more. That balance has guided this 2027 budget. And importantly, I do want to say that we are not waiting until 2027 to act on some of the issues that residents have discussed with us. Not every improvement requires additional general fund dollars. Sometimes it requires better management, sometimes it requires departments to stop operating in silos, sometimes there are capital dollars, grants, federal resources, and other dedicated funds that can do the job instead. We approve that despite financial constraints we have faced this year, we have been able to enhance city services in important areas. That matters because financial challenges cannot become an excuse for government not to work, but these challenges also can't be ignored. And that brings us to the budget before you today. This is a tough budget. There are significant reductions in it. There are choices none of us would make if resources were unlimited, but there is also something very important to relay. As difficult as this budget is, our city is in a much stronger financial position today than we were one year ago. Last year we were confronting an immediate financial crisis. Our cash position was strained, our reserves were under pressure, and the city was relying heavily on one-time money to support recurring expenses. We had to act quickly, and we did. City government became smaller, overtime was reduced, travel was cut by 90%, offices and positions were consolidated, spending controls were tightened, eligible infrastructure costs were shifted from the general fund to the bond fund. Those were difficult decisions, but they helped stabilize our finances and restore our reserves. So the challenge that we face today is actually different than what we faced last year. Last year we had to make difficult decisions to get out of a financial crisis. This year we have to make difficult decisions to make sure that we do not fall back into one. That is progress, even if the work ahead still remains hard. For 2027, the city has approximately 748 million dollars in recurring revenue compared with projected 2026 expenditures and also the department's 2027 requests. That leaves us facing a gap of roughly 100 million dollars.

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