The Budget, Audit, and Board of Review Committee in New Orleans met on March 19 to discuss the city’s financial status, review audit plans, and vote on legislation including a major water revenue bond resolution.
The meeting addressed the city’s ongoing budget challenges and outlined steps being taken to manage deficits. Officials presented updates on spending, revenues, and strategies for maintaining financial stability in the coming months.
Becky Hammond from CRI Advisors, LLC and Carr, Riggs & Ingram, LLC explained the annual audit process for the 2025 fiscal year. The audit will cover governmental activities and major funds with fieldwork starting March 30 and a final report expected by June 30. Representatives from the Downtown Development District (DDD) also gave an overview of their operations for 2025. The DDD manages a 160-block area downtown with a $9.8 million budget focused on sanitation, safety services, economic development initiatives, and special projects such as infrastructure improvements related to Super Bowl LIX.
Alyssa W. Rambeau of the Finance Department reported that by January 31 city expenditures exceeded revenues by $50 million. Revenue collections were at 86% of forecast but property tax receipts lagged behind projections. Personnel costs made up $126.8 million or about 16% of the budget; these are expected to decrease following recent layoffs and furloughs. The General Fund had an unaudited balance of $71.59 million but officials cautioned that this figure could change as the year progresses.
Chief Administrative Officer Joe Giarrusso warned that without intervention, cash reserves could be depleted by early April with deficits potentially reaching -$133 million by late September. Short-term remedies include using a $35 million Rainy Day Fund or expanding furloughs and layoffs while long-term plans involve borrowing against general alimony millage to raise one-time funds without increasing annual debt payments.
The committee recommended approval of several legislative items including Resolution R-26-124 authorizing up to $66 million in Water Revenue Bonds for New Orleans—a measure described as having no fiscal impact on the city.
