City Moves Forward with Next Phase of Budget Stabilization to Solve Budget Crisis by 2027
NEW ORLEANS - Today, the City of New Orleans announced a continuation of repairs to its fiscal health. In collaboration with and with the support of the Louisiana Legislative Auditor, the City is continuing its cash flow management strategy by advancing an expected medium-term loan with a banking institution as it gets closer to clawing out from under the inherited fiscal crisis.
"Seeking this medium-term financing option is a substantial step towards restoring the fiscal health of the City and signals our transition from crisis towards stability," said Mayor Helena Moreno. "This financing package steps us away from immediate crisis-response revenue anticipation notes over the past six months into a cheaper, more advantageous option."
“Thanks to relentless and careful management by our team, we're finally on a path towards mitigating the financial crisis. There is still more work on the finances being done and to be done. The proposed plan will the support the City’s immediate cash needs while also protecting against repaying the loan all at once," said CAO Joseph Giarrusso.
"Under this Mayor, the City's made real and clear progress in tightening its fiscal belt and restoring sanity to its bottom line. This latest financing arrangement is evidence that their management has helped move the city out of a critical stage and towards sustainability and fiscal health. I'm glad to see it and support their approach," said Mike Waguespack, Louisiana Legislative Auditor.
The financing package, which will be presented by resolution to the City Council this week is comprised of a $110 million loan with a banking institution backed by the City's tax revenue. It represents a step change in phase away from the immediate cash crunch and is expected to be the final financing necessary to sustain the city until regular revenues pick up the slack in the medium term. The next step is for the City to seek approval from the State Bond Commission in anticipation of the closing of this financial package later this summer.
# # #
|
