On the Ballot: $510 Million New Orleans Capital Bond Authorization

On the Ballot: $510 Million New Orleans Capital Bond Authorization

October 24, 2025 • Bureau of Governmental Research

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Resumen Español Go to City Attorney Report Go to 2019 Bond Report

Update, April 2026: Now that the City is moving forward with bond issuances, BGR has published guidance for residents on what to watch for and sent recommendations directly to the Mayor and City Council. Read the letter here.

In this report, BGR examines three separate propositions on the November 15, 2025, ballot that would authorize the City of New Orleans to borrow a total of $510 million for capital improvements.

Overview

On November 15, New Orleans voters will decide three separate propositions that would authorize the City of New Orleans (City) to borrow a total of $510 million for capital improvements. Specifically, the new long-term debt, in the form of bonds, would go toward constructing, renovating, improving or acquiring:

City Infrastructure ($415 million). This includes streets, bridges, buildings, public safety facilities, and parks and recreational facilities. The City could also purchase long-lasting software and technology improvements, heavy equipment, and essential service vehicles for public purposes.
Drainage and Stormwater Management projects ($50 million)
Affordable Housing facilities ($45 million)

Click the links above to review the proposition text. They will appear in this order on the ballot: (1) Affordable Housing, (2) City Infrastructure, and (3) Drainage and Stormwater Management.

The City would pay off the bonds over 30 years with revenue from a dedicated property tax (the “debt service tax”). Voters implicitly agree to pay this tax when they approve a bond proposition. The City is required to levy the tax as long as any bonds remain outstanding. The current tax for existing debt is 14.5 mills. The size of the bond proposals is based on the current capital needs and the City’s ability to spend down the bond proceeds. The City’s goal is to keep the tax at the current rate for the first year and minimize the need to increase it thereafter. The City is seeking voter approval now to give the next mayor and council a head start in tackling some of the several billion dollars in infrastructure, facility and housing needs.

BGR prepared this report to provide voters with an independent, nonpartisan analysis to help them make an informed decision. The report’s analysis poses three key questions: (1) Has the City carefully planned how it will spend the bond proceeds and provide financial stewardship and accountability for public dollars? (2) Are bonds an acceptable way to fund the purposes in light of alternative funding options? (3) Is there evidence that the bonds would result in effective outcomes for the public?

Recently, BGR published Beyond the Ballot: Analyzing the Outcomes of the 2019 New Orleans Bond Authorization. It reviews how the City spent the previous $500 million in bonds approved by voters in 2019. BGR took this deeper look at the City’s usage of these bonds to enhance public transparency and accountability. The report found that those bond proceeds allowed the City to tackle urgent capital needs and shift money toward emerging priorities. However, without stable funding for maintenance, bond investments will have a shorter functional life, limiting their benefit to residents. This could lead to higher capital replacement costs for future generations of taxpayers. The report also found that residents lack an easy way to track the use of current and future bond funds. The City should address these issues before issuing new bonds, as discussed below.

Report Highlights

Spending Plans and Fiscal Accountability

The $510 million from the three propositions would provide major funding to meet the capital needs of the City’s departments and agencies, infrastructure, and affordable housing. Voters will decide the total amounts that the City would borrow, rather than specific projects. BGR’s analysis of the City’s current spending plans finds that about half of the bonds would go to streets and related infrastructure, such as bridges, sidewalks and streetlights. Another 17% will support public facilities, vehicles and equipment. The remaining bond proceeds are spread among parks and recreation, affordable housing, and drainage and stormwater management. A small portion will fund economic development and blight remediation projects.
The City administration and council have developed lists of intended projects for the City Infrastructure and Drainage & Stormwater Management bonds. While the council can add or remove projects, voter approval of the bond authorization would require the council to follow the list and the process for modifying it. To add or remove projects, the resolution requires the council’s Public Works Committee to hold a public meeting to recommend any project removals or substitutions to the full council. However, the resolution does not commit the council to fund any of the projects on the list, or set any priority order. As discussed below, there is no project list for the Affordable Housing bonds.
BGR finds that preliminary estimated bond spending for the City Infrastructure projects exceeds the bond proposal by $19.4 million. City officials told BGR that the administration and council will align spending to the available bond funds as cost estimates are finalized.
The City’s project lists for the City Infrastructure and Drainage & Stormwater Management propositions improve transparency compared to previous bond propositions. However, the lists themselves do not show the estimated costs or bond funding for specific projects. BGR obtained that information separately from the City. But the public does not have an easy way to track the projects and funding. The City should remedy this information gap before it issues new bonds.

The Drainage & Stormwater Management project list would provide a substantial investment in green infrastructure projects, along with upgrades to traditional drainage. This holistic approach would help slow the flow of stormwater to the pipes and pumps and reduce flood risk in several neighborhoods. Experts recommend such a strategy. The City is coordinating these investments with the Sewerage & Water Board’s drainage work.
In researching this report, BGR received differing views from City administrators and some council members on whether the Affordable Housing bonds would be used to meet the new Housing Trust Fund budget dedication. Shortly before the release of this report, City officials’ intent to do this became clearer to the public. Some council and administration officials want the bonds to cover most of the new budget dedication for the Housing Trust Fund. Last fall, New Orleans voters amended the City charter to require an annual appropriation for the trust fund. This dedication must be equal to at least 2% of the City’s General Fund budget. However, other observers believe bond funds should be used for programs outside of the trust fund. In this case, the trust fund dedication would have to be met with General Fund money. City officials will negotiate the mandatory appropriation for the first time for the 2026 budget, which is estimated at $14.5 million.
The Housing Trust Fund’s budget process, set by council ordinance, provides a transparent and accountable framework for future bond-funded projects. The City plans to reinforce this with a future cooperative endeavor agreement with the trust fund’s administrators.
However, using bond funds for the dedication raises some concerns. The bond funding will last only a few years. Bond debt to cover a recurring expense is a temporary and expensive funding source. Also, this capital money likely cannot pay for the trust fund’s operating costs and non-capital housing programs. Bond proceeds can only be used to support capital investments of 10 years or longer.

Alternative Funding Options

In the short term, the City lacks alternative sources sufficient to fund the City Infrastructure and Drainage & Stormwater Management projects. The main alternative source of funding for the Affordable Housing projects is the General Fund, which faces its own financial stresses.
In the long run, the City should consider relying less on general obligation bonds for its facility and infrastructure needs. Instead, it should develop a more complete capital funding strategy. It could explore phasing in a dedicated property tax, like the Orleans Parish School Board did to maintain its school campuses.
A stormwater fee is a more equitable alternative to general obligation bonds to increase funding for New Orleans’ unmet drainage and stormwater management needs. A fee offers two advantages over current funding through property taxes. A fee is based on the amount of runoff from a property, so it is more closely tied to usage of the drainage system. A fee also would be paid by government, nonprofit and other tax-exempt property owners. BGR acknowledges that property taxes and bonds, to some degree, will remain baseline funding sources because of the magnitude of system costs. The Sewerage & Water Board is developing a fee proposal, but it is unclear what share of the revenue the City would receive.
There is no long-term strategy to fund the Housing Trust Fund’s annual budget dedication. Not using the bonds to cover the estimated $14.5 million dedication risks deeper cuts to an already strained 2026 budget. However, in the long run, interest costs make bonds a more expensive way to furnish the trust fund. Over the lifetime of a 30-year bond, for instance, interest costs typically account for 40% of what the City ultimately pays back. This means that a $14.5 million dedication in one year becomes a $24.1 million cost by the time the bond matures.

Potential for Effective Outcomes

The $415 million for City Infrastructure and $50 million for Drainage & Stormwater Management would begin meeting several billion dollars of City capital needs.
The bond propositions will fund a wide range of projects with direct benefits for citizens and businesses. If voters reject the proposals, it will delay this critical work by at least a year. This could undermine progress for citizens and business owners desperate for better infrastructure, drainage and housing.
While the City Infrastructure and Drainage & Stormwater bonds would help meet urgent capital needs, the City will need significant maintenance funds to prevent the premature deterioration of these projects. The City must pursue that funding to protect taxpayers’ investment.
The Affordable Housing bonds would contribute a portion of the billions in public and private funding needed in that area. The trust fund has several aspects that could lead to positive impact for housing affordability. The trust fund’s administrators have expertise in deploying housing programs and developing affordable housing. Other cities with housing trust funds have also leveraged millions in non-local public and private financing, which multiplies the impact of their initial appropriation.

BGR Positions

City Infrastructure Bond Proposition

FOR. The $415 million City Infrastructure bond proposition would inject much needed capital funds into streets, City buildings, parks and recreation, and other municipal assets. The investment would reduce the City’s large backlog of deferred maintenance. It can also help improve the effective delivery of public services and meet the demands of communities across the city. Delaying action will set back progress by a year or more, as no other funding streams of this magnitude are available. The current bond proposal would give the City flexibility in project selection and timing, while also supporting planning, transparency and accountability.

If voters approve these bonds, the City should bolster those gains by providing a public-facing dashboard of bond appropriations, expenditures and outcomes, or a similar accountability tool. In addition, the City must develop an adequate and consistent funding strategy for preventive maintenance. Otherwise, it risks the premature deterioration of these essential assets, a reduced public impact of the bonds, and greater capital costs down the road.

Drainage & Stormwater Management Bond Proposition

FOR. The City of New Orleans still plays a significant role in local stormwater management, even after transferring its catch basins and underground pipes to the Sewerage & Water Board this year. The City manages a growing portfolio of rainfall retention projects designed to ease the burden on the Sewerage & Water Board’s pipes and pumps. The $50 million Drainage & Stormwater Management bond proposition would allow the City to further help flood-prone neighborhoods. Without the bonds, the City will have to delay these investments. The City has retained flexibility in project selection and timing, while also improving planning, transparency and accountability, compared to past bond propositions. It also currently coordinates its stormwater initiatives with those of the Sewerage & Water Board. The City should bolster those gains by providing a public-facing dashboard of bond appropriations, expenditures and outcomes, or a similar accountability tool.

While these property tax-supported bonds will make an immediate impact, BGR urges the City and the Sewerage & Water Board to prioritize a stormwater fee as a more equitable long-term funding solution for New Orleans’ unmet drainage and stormwater management needs, including maintenance. Unlike property taxes, a fee is closely tied to property runoff (i.e., use of the drainage system) and is paid by both taxable and tax-exempt property owners. BGR acknowledges that property taxes and bonds, to some degree, will remain baseline funding sources because of the magnitude of system costs.

Affordable Housing Bond Proposition

AGAINST. Facing a budget crisis, City officials propose using the $45 million Affordable Housing bonds to meet the new annual funding obligation to the Housing Trust Fund. The trust fund’s budget process would provide an accountable and transparent way to deploy the bond proceeds that can improve housing affordability. However, the City should not use long-term debt to cover annual budgets. In addition, voters do not know the extent to which the bonds will be enough to meet the trust fund obligation, how long the City will pursue this funding strategy, and how much non-capital costs and programs the City must cover from General Fund revenue. The interest payments on the bonds would make the annual dedication more expensive for residents and businesses. For a 30-year bond, interest typically accounts for 40% of what the City ultimately pays back.

The City should find a more sustainable way of meeting the mandatory dedication to the Housing Trust Fund. If bonds must be part of that funding picture, the City should clearly communicate this to voters and be transparent about the long-term costs. It should deploy strategies that mitigate potential interest costs, such as limiting the maturities on those bonds. While this approach may increase debt service payments in the short run, it would curtail the overall interest burden on taxpayers.

Click here to read the full report.

This report is part of BGR’s On the Ballot series, which provides voters with independent, nonpartisan analysis of significant ballot propositions in the New Orleans metropolitan area. In producing these reports, BGR recommends positions consistent with its mission of promoting informed public policy making and the effective use of public resources to improve local government. On the Ballot reports highlight the strengths and weaknesses of ballot propositions and assess the potential for government expenditures or actions to efficiently achieve beneficial outcomes for citizens.

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