LA Bond Commission approves New Orleans’ $125 million emergency bond sale

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NEW ORLEANS (WVUE) - The Louisiana Bond Commission unanimously approved New Orleans’ request to sell $125 million in emergency bonds amid a crippling budget crisis.

The approval came after two back-to-back meetings. First, the state Fiscal Review Committee met to discuss the city’s fiscal posture.

Attorney General Liz Murrill, a member of the review panel, said, “It was clear from the information that I received that New Orleans is financially this municipality unstable.”

Mayor-elect Helena Moreno, who sits on the City Council, said they are reworking the budget proposed by Mayor LaToya Cantrell.

“The budget that this current administration presented to us we do not think is workable. We actually have to rebuild it from scratch and we are working on a variety of different efficiencies and finding every kind of cost-costing measure possible,” Moreno said.

The city is facing a $160 million budget shortfall this year.

To secure state assistance, the City Council passed measures that ensure Legislative Auditor Mike Waguespack has oversight of a newly created special fund in anticipation of the emergency bond sale.

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A commission member questioned City Council President J.P. Morrell about the city’s financial condition. Morrell previously served in the state Senate.

“The city of New Orleans did not learn what we learned during the Jindal years, which is you cannot use one-time federal money as a recurring expenditure, money,” Morrell said.

Waguespack said his staff is already stationed at City Hall and suggested the city’s sanitation fee may need to be increased.

“Residents are paying about $24 a month for the trash pickup. It probably needs to be realistic to break even around $36,” he said.

Gov. Jeff Landry attended the Bond Commission meeting and addressed concerns about fairness.

“Some people are saying, we’re not, we’re treating New Orleans different. We’re actually being more fiscally restrained in this process than not. I mean, those are just the facts, I mean, whether people like it or not, it doesn’t matter,” said Landry.

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