Overview
- Treasurer John Fleming said negotiators have a framework that would allow the city to borrow $125 million with bond proceeds held in a segregated account and draws permitted only with the legislative auditor’s approval.
- Under the outline, the auditor could stop disbursements and refer the case to the Fiscal Review Committee if controls fail, avoiding an immediate fiscal takeover but preserving that option if problems persist.
- City Council leaders met state officials in Baton Rouge on Wednesday as Mayor‑elect Helena Moreno works with lawmakers and the legislative auditor on guardrails intended to satisfy the Bond Commission.
- New Orleans reports roughly $25 million on hand, enough to cover payroll for about 5,000 employees through Nov. 12, with monthly payroll around $40 million and the loan meant to bridge year‑end cash needs.
- Officials are pursuing stopgaps including a $6.5 million transfer from the New Orleans Building Corporation, a possible rainy day fund draw, potential reallocation of about $45 million in unspent ARPA funds, FEMA reimbursements estimated at $30 million to $50 million, and an $11 million Sewerage & Water Board reimbursement, while preparing for cuts such as overtime cancellations and service reductions.