New Orleans City Council 2027 Proposed Budget Hearings, Day 3: Capital Budget, CIP, and Public Works (October 5, 2026)

The New Orleans City Council held Day 3 of its 2027 Proposed Budget Hearings on Monday, October 5, 2026. The agenda listed a 9:00 a.m. start; the chair opened the hearing at approximately 9:31 a.m., noting the Saints–Falcons game meant an early close. Presentations covered the Five-Year Capital Improvement Plan (2027–2031), the 2027 Capital Budget, the Office of Capital Projects Administration (CPA), the Department of Property Management (DPM), and the Department of Public Works (DPW). No votes were taken; the hearing consisted of staff presentations, extended council questioning, and one public comment.

Public Comments & Testimony

• Al Censary, a 68-year New Orleans resident and owner of PJ Oyster Company (150 years in business), said he came to the council because no one had returned his calls or met with him since March. He cited a municipal code ordinance requiring transient and foreign businesses operating in Orleans Parish to obtain an operational/occupational license and file monthly sales and use tax forms. He asked whether the city is collecting these licenses, from how many businesses, and how much revenue was collected this year. The chair replied that someone would follow up with him.

Discussion Items

Five-Year Capital Improvement Plan (2027–2031) — City Planning Commission (Laura Bryan)

• Staff described the charter-required CIP process: submissions were due May 1; public hearings for departments ran May 18–27; the Questica software platform was used. Project categories include planning, renovation/continuing maintenance, equipment, technology, new construction, and land acquisition; the majority of requests are for repair and continuing maintenance of existing facilities. Intergovernmental requests total $3.5 million, plus USDOT and EPA grant requests.
• Staff found a mismatch between department priorities (immediate operational needs and deferred maintenance) and the 19-criteria CIP scoring matrix (asset longevity, resilience, multi-benefit infrastructure). Staff said they are examining possible changes to the matrix. Councilmember Willard commented that neglected deferred maintenance ends up costing more, noting it was a recurring theme in the legislature.
• CPC staff conducted site visits to the NOLA Crime Lab, the public safety warehouse, and Mirabu Water Gardens (spelled variously in the transcript). The Crime Lab request includes redesigning the fourth floor to meet federal requirements for FBI database access and in-house nationwide DNA searches; the warehouse request would expand capacity for NOFD, EMS, and NOPD.
• No new bond proposition is proposed this year: the $510 million approved by voters in fall 2025 (infrastructure; stormwater/green infrastructure; affordable housing) is already allocated, leaving zero dollars of new bond funds for 2027. The administration confirmed two further bond sales, in 2028 and 2030, evenly splitting the $510 million across three sales; officials hope premiums and an improved credit rating will generate more than the remaining $312 million.
• Staff made two recommendations: (1) the administration should prioritize continuing maintenance and renovation projects for remaining bond allocations, and (2) the council should consider amending the voter-approved infrastructure list to restore removed projects and add new requests from this year's CIP, such as the approximately $9 million Crime Lab retrofit and the approximately $24 million low-barrier shelter request (submitted for the first time this year). Councilmember McCarron raised the JJC HVAC repair, noting one of two units remains unfixed; CPC said previously removed JJC requests should be restored to the list.

2027 Capital Budget — Capital Budget Office (Kyle)

• The city has 389 active capital projects totaling $1.7 billion, with $1.4 billion (about 83%) encumbered and $982 million already spent, leaving about $765 million to be paid out. Funding is dominated by federal grants (principally FEMA public assistance/JIR), followed by bonds, then miscellaneous capital, property insurance, Sewerage & Water Board, and state funds. A June 2026 bond sale generated more than $154 million for infrastructure and stormwater/drainage improvements (excluding affordable housing).
• Highlights: FEMA extensions for Katrina damage repairs at the Municipal Auditorium (contracts under way; the Yacht Harbor restrooms extension is still pending); opening of Goldring Wollenberg Riverfront Park and the new NOFD headquarters; two new splash pads; library roof/HVAC repairs; and the Children's Resource Center ribbon cutting. Upcoming work includes Ida repairs, Criminal District Court jury deliberation room renovations, NOMA HVAC repairs, multiple Parks and Parkways facility improvements, Pecan Grove Recreation Center renovations, and a generator/microgrid at Joe W. Brown Park.
• DPW capital highlights: nearly 50 new internal paving employees (50 next week), heavy equipment purchases, and two major bond contracts (citywide asphalt and citywide concrete). Upcoming: citywide sidewalk and specialty sidewalk (brick, slate, and other non-concrete) bids; a pavement condition assessment; district street packages; Morrison Road; Carrollton Avenue design RFQ; a roadway lighting safety supplement; and a streetlight master plan.
• JIR program: FEMA extension through June 2, 2028; 173 blocks completed, 135 in construction, and 338 remaining; $365 million total investment, $78 million invoiced, $287 million remaining. All contractors are committed to the deadline. Upcoming bridge work includes Orleans and South Broad (Q4 2026 bids), Fillmore, Mayo at Morrison, Holiday Drive at General DeGaulle, and Tullis.
• Office of Sustainability/stormwater: Lincoln Beach Phase One design split into three packages so the first package (parking lot) can advance to construction by the end of 2026; four Gentilly Resilience District construction contracts were executed under the National Disaster Resilience Grant; Mirabu Water Gardens Phase One, the Broadmoor drainage improvements, and Willie Hall are advancing; the Upper Ninth Ward drainage study identified 11 potential stormwater management projects.
• Council Q&A: The $535.9 million of general obligation bonds in the current budget reflects 2026 and prior-year bonds, not the future 2028/2030 sales. DPW salary costs are supported for a decade with about $7 million per year in bond funds; the 11 FEMA-funded JIR positions will be supported through a two-year consultant engagement, with transition slots at DPW. Coordination with the Sewerage & Water Board on lead service line replacement is a precondition for paving (no mill/overlay unless it is certain there are no lead lines underneath). An ordinance passed the prior Thursday transfers $2 million in capital funding for drainage point repairs (described as to DPW and, later, to SWBNO); the city also seeks SWBNO confirmation that subsurface lines are sound before paving. The Saratoga lot is still awaiting FEMA's green light. Councilmember Green praised visible Ninth Ward progress; staff cited jurisdiction, funding, and blighted-property challenges for stormwater projects, and agreed to address railings and warning tape on the Almonaster and France Road bridges. Councilmember Morrell asked for more community outreach on Gentilly Resilience District construction, questioned the cost/benefit of investing a third of a billion to a billion dollars in a new City Hall, and pressed for a funded low-barrier shelter retrofit, noting no money is currently identified in the capital budget for it.

Office of Capital Projects Administration — Steve Nelson (Deputy CAO for Infrastructure, sitting in for Jerry Harris)

• The 2027 proposal reduces general fund personnel by $188,000 and other operating by $67,000, for a net reduction of $255,000 (from $377,000 adopted in 2026 to $121,000 proposed), by shifting salaries to bond/grant funds and cutting non-essential spending (cell phones, office supplies, copy machines, water, coffee). Non-general fund other operating drops from $8,581,838 to $5.1 million — a total reduction of $3,273,943 — including $5 million in state capital outlay for the SWBNO power complex project and a $100,000 state pass-through for the Desired Community Housing Corporation (the presenter corrected a $100 million typo).
• Goals include expanding the Procore project-management/construction-management tool (currently paid through FEMA indirect admin fees; future funding will need to be identified after the JIR program ends), securing FAA drone certifications for roof/HVAC inspections and pre/post-storm documentation, and deploying 360-degree cameras. Councilmember Green asked that drone use be limited to certified operators focused on construction-related missions; training is expected in 2027.

Department of Property Management — Austin Wilte (Director)

• Wilte (two weeks in the role) presented a tight general fund budget; personnel is largely intact, with the increase attributed to correcting the accounting of fringe benefits. Non-general fund decreases about $600,000 from reallocating positions to appropriate special funds (cemetery fund, Gallier Hall fund, and others); the OCD lease space is now paid through a grant (about $365,000 increase in non-general other operating).
• Revenue initiatives: cemetery tours at Lafayette Cemetery No. 1 with the Preservation Resource Center — four tours a day, 16 people per tour, $30 per person, roughly $2,000/day, with the city receiving 20% (just under $400/day) at the lowest revenue tier; the intent is to fund a cemetery superintendent from tour revenue. Parking at the City Hall Garage generated about $6,000 in July/August, with expansion planned to the VA garage. Lease management with Corporate Realty has produced lower pricing. Other efficiencies include cross-training employees, consolidating storage of records/evidence, and reducing the VA hospital's $350,000 annual electric bill.
• Q&A: The low-barrier shelter has had low or no water pressure on four of the last five weekends; fixes involved SWBNO response, repair of vandalism, and a contractor's same-day temporary fix. Councilmember McCarron called the building "throwing good money after bad" (elevator broken, bathroom issues) and supported funding a new or retrofitted shelter; Wilte agreed residents need a better location. The $1 million in Fund 4511 is for the chilled water service contract at the OVA, not shelter AC. The Second District police station RFP is being re-evaluated; the evidence-processing lease renewal (potential $100,000 rent increase) is under review, with alternative locations being explored. Some police station AC compressors are on backorder (notably the Sixth District). The Gallier Hall fund has generated roughly $800,000 year-to-date ($540,000), with an ending balance of about $1.15 million; an ordinance has passed to allow personnel costs to be paid from the fund, and the council indicated the omnibus amendment should authorize that use. Councilmember Green requested cleanup of the blighted former city health clinic at Desire and Florida ahead of the November 26 Ninth Ward anniversary; staff agreed to add it to an October 20 interdepartmental agenda.

Department of Public Works — Steve Nelson (Director)

• DPW grew from about a dozen paving employees at the start of the year to 47 today, with three more starting next Monday (50 total); the city also hired multiple electricians (from zero), inspectors, EITs, a chief traffic engineer, a deputy director, and other staff — approaching 90–100 new hires, with 250 applicants for the paving jobs. DPW had not mixed and poured its own concrete in-house since before Hurricane Katrina; crews now pour hundreds of linear feet of sidewalk weekly.
• The 2027 proposal reflects a $9.8 million general fund reduction (from $19.9 million adopted; the city is on a cash basis and had spent about 30% of the budget at 75% of the year). The gap is bridged by paying bond-eligible staff (work with a life of 10+ years and over $5,000) from bond funds — endorsed by the legislative auditor and bond counsel — and by $4 million in CDBG funding for traffic signals, striping, and materials. Towing/impoundment functions transferred to NOPD ($1.18 million). The remaining Entergy settlement (~$3 million, about half remaining) is dedicated to major roadways including I-10 and I-610. Sixty employees are funded entirely by bonds; a 35% DBE participation target and a ~$1 million sidewalk contract scope aim to keep dollars local.
• Performance: street light wait times dropped from about 450 days to just over 200 days (goal: under 100 days by year-end and 30 days or less in 2027); street name signs from 800–900 days to about 700 days; more than 12,000 lighting work orders handled and almost 9,000 lights turned on. Traffic signals on Claiborne were permanently repaired (bad splices, fire ants, an Entergy feed problem, and a clipped line) rather than repeatedly reset. August 2026 was the first month in 10 years with zero traffic fatalities, supporting the zero-fatality goal.
• Operations changes: crews will shift from citywide response to focused 10x10 neighborhood deployments for about a week at a time; DPW will complete its first internal mill-and-overlay block this year, scaling up next year; pothole capacity target is 1,500 per week; a street light master plan and a pavement condition assessment (including striping) are under way; striping is a 2027 priority.
• Q&A: In-house sidewalk repairs cost a quarter to a fifth of contractor rates (excluding large full replacements); a stop sign request at St. Paul's school should move faster than a full-blown study, with a 30-day turnaround goal for signs; IBEW apprenticeship outreach is planned with two electrician openings upcoming; contractors will still be used for complex work (interstate directional boring, high-rise outages); NOPD notification protocols for damaged traffic signals should be formalized. Councilmember Hughes pressed for sidewalks and lighting on New Orleans East service roads and on Chef Highway and Lincoln Beach Boulevard, calling the latter "frightening"; Nelson committed to coordination with the state and federal delegation. Councilmember Morrell suggested AI-enabled photo reporting (using photograph metadata) to supplement 311 for immediate hazards like blinking lights. Councilmember Green noted the city maintains 170+ of the 453 signalized intersections located on state routes, plus lights on I-10/I-610 and grass cutting along state highways, and asked for a stronger state partnership; Nelson confirmed active discussions with the state on cost-share corrections. Councilmember Willard asked about the dedicated millage code (DPW has not had one; funds were moved to new budget codes) and the All-Star Electric contracts (~$2 million; to phase toward in-house over two to three years). The chair noted a reported blinking light (Kelly/Open Loyola intersection) for follow-up.

Key Outcomes

• No formal votes were taken; the hearing was informational. The next hearing (rescheduled from Tuesday to Wednesday) will cover the mayor's office, law department, aviation board, and municipal/traffic court.
• The City Planning Commission adopted and submitted the 2027–2031 CIP to the mayor; staff recommended prioritizing continuing maintenance and renovations for bond allocations and asking the council to consider amending the voter-approved bond infrastructure list to restore removed projects (e.g., JJC HVAC) and add new ones (e.g., Crime Lab retrofit, low-barrier shelter).
• The administration confirmed 2028 and 2030 general obligation bond sales to complete the $510 million voter-approved program.
• A referenced ordinance (passed the prior Thursday) transfers $2 million in capital funding toward drainage point repairs, with SWBNO coordination; the city set a precondition of confirming no lead service lines beneath streets before mill/overlay work.
• DPW will begin neighborhood-concentrated (10x10) work crews, a 2027 striping program, a street light master plan, and a pavement condition assessment; a two-year JIR project-management consultant will create transition slots for 11 FEMA-funded staff.
• The Gallier Hall fund ordinance passed, allowing personnel costs to be paid from the fund; the council requested the omnibus amendment reflect that use.
• Follow-ups promised: District E project schedules and Lincoln Beach details for Councilmember Hughes; Saratoga lot FEMA clearance; bridge construction timelines; evidence-processing lease options; cemetery superintendent funding analysis; Almonaster and France Road bridge railings/warning tape; cleanup of the Desire/Florida clinic site (October 20 meeting); and a staff response to Mr. Censary's transient/foreign business license questions.