The New Orleans City Council will get the money it needs to cover payroll expenses for the rest of the year on Friday morning.
The council unanimously approved the resolution to issue $125 million in bonds during its special meeting Wednesday morning. The council's bond attorney, Jason Akers, says the city's first note is due on February 2nd. Akers added that the city can--and likely will--pay off its debt early.
"Should funds come in, you are absolutely able to pay it off early after February 1," Akers said. "This note has a final maturity of June 30. It actually is anticipated that it will be paid off by the end of May."
Akers told council members this morning that the $125 million on bond funds should clear the bank within 48 hours.
"We have an anticipated delivery date by Friday, and those transfers typically happen in the morning," Akers said, later adding that those funds should be in the city's bank account by 9 a.m. Friday.
However, Akers warned council members that they will need to follow closely the ordinance they approved setting the stage for this bond sale and any applicable state laws when doling out the bond money for payroll purposes.
"Those funds, when we close, which is anticipated to be on Friday of this week, the 21st, (the money) will actually be deposited in the employee emergency payroll fund that you created by ordinance and would be only paid out of that fund upon compliance with the terms of the ordinance that you adopted earlier this month," Akers said.
The council deferred items to tape the city's rainy day fund to cover New Orleans Police Department expenses to Thursday's regular meeting.