NEWS

Kim M. Braud | Evans Cutchmore Press | July 16, 2026

NEW ORLEANS - The New Orleans City Council's Budget, Audit, and Board of Review Committee advanced several budget measures Wednesday while receiving presentations that offered two perspectives on the City's finances: an annual audit showing declining reserves over the past several years and a monthly budget report indicating revenues are currently outpacing expenditures in 2026.

Budget Snapshot

$17.03M - Affordable housing funding advanced

$4.27M - OpenGov contract through 2029

$91.9M - Revenue exceeded expenditures

248 - Vacant City positions

7% - General Fund reserve level (FY2025 Audit)

July 23 - Next City Council vote

Among the committee's actions was a recommendation to approve approximately $17 million in Housing Bond Funds for affordable housing developments, extend the City's contract with OpenGov through 2029, and create a new administrative position to oversee hearings across multiple City departments.

Housing bond funding moves forward

The committee voted to recommend approval of Ordinances 35,484 and 35,485, appropriating $17,034,118 generated through the City's 2021B and 2024B housing bond sales.

According to the legislation, the funding would support four affordable housing developments:

  • Iris Riverbend
  • Lafitte Phase VII
  • Grove Place II
  • BW Cooper

The ordinances now advance to the City Council for consideration at its July 23 meeting.

OpenGov contract extended through 2029

Committee members also recommended approval of an amendment extending the City's enterprise asset management contract with OpenGov, Inc.

The amendment would:

  • Extend the agreement through July 31, 2029
  • Increase the contract's maximum value to $4.27 million
  • Fund three additional years of software maintenance
  • Add implementation of the OpenGov 311 service request module

According to committee documents, the contract is funded through General Fund and capital dollars, and the City granted a DBE waiver because the software is proprietary.

New administrative bureau position introduced

The committee also discussed Motion M-26-44, which would amend the City's Classified Pay Plan to establish a Centralized Adjudication Bureau Administrator.

If approved by the full Council, the position would oversee administrative hearings across multiple departments, supervise bureau staff, and develop standardized policies and procedures.

The motion is expected to return for a vote during the July 23 regular Council meeting.

Annual audit shows declining reserves despite infrastructure investment

The committee also received the Fiscal Year 2025 Annual Audit presentation from Carr, Riggs & Ingram.

Auditors issued an unmodified ("clean") opinion on the City's financial statements but also reported one material weakness related to internal financial reporting and identified the Firefighters' Pension and Relief Fund as significantly underfunded.

The presentation showed several notable financial trends:

  • Sales tax collections remained relatively stable.
  • Property tax collections remained consistent over recent years.
  • Capital assets increased, particularly in infrastructure, buildings, and equipment.
  • Construction in progress declined as projects moved closer to completion.
  • Pension obligations remain among the City's largest long-term liabilities despite overall improvements in debt levels.

One of the audit's most notable charts showed the City's General Fund equity declining from more than 40% of annual expenditures in 2021 to approximately 7% in 2025, indicating a substantially smaller financial cushion than in prior years.

Monthly budget report paints a stronger 2026 picture

While the annual audit examined financial activity through the end of 2025, the Chief Administrative Office's May 2026 Budget Report presented a more favorable year-to-date outlook.

According to the report:

  • Year-to-date revenues totaled $392.5 million, exceeding the budgeted $370.4 million.
  • Revenues exceeded expenditures by $91.9 million through May 31.
  • After accounting for financing activities, the City's fund balance increased by $43.7 million year-to-date.
  • Overtime spending remained approximately $873,000 below budget.
  • The City reported 248 vacant positions, representing about a 5% vacancy rate, as a hiring freeze continues for non-essential positions.

The administration cautioned, however, that partial-year results should not be used to project the City's year-end financial position because revenues and expenditures do not occur evenly throughout the fiscal year.

What's next

The affordable housing ordinances, OpenGov contract amendment, and the proposed Centralized Adjudication Bureau Administrator position are expected to return before the full New Orleans City Council during its July 23, 2026 Regular Meeting. Motion M-26-242 was deferred until the Council's Aug. 6 meeting.

How to follow this

Decision-making body: New Orleans City Council

Next meeting: Thursday, July 23, 2026

Location: City Council Chamber, City Hall, 1300 Perdido St., New Orleans

Agenda: Posted on the City Council's legislative calendar before the meeting

Public comment: Speaker cards are available before agenda items are heard during the meeting

Meeting record: Video recordings, agendas, legislation, and supporting documents are available through the City's Granicus legislative portal

Wednesday's agenda: cityofno.granicus.com, Budget, Audit and Board of Review Committee, July 15, 2026

Figures are drawn from the FY 2025 audit presentation by Carr, Riggs & Ingram and the May 2026 budget reports, submitted to the Clerk of Council on July 1 by Finance Director Alyssa W. Rambeau. May figures are unaudited.