New Orleans has raided its reserve fund too often, and before city officials boost the fund by $103 million, they should agree to only tap it during emergencies, according to a new report from the Bureau of Governmental Research.
The Monday report comes as the City Council prepares to approve a deal devised by Mayor Helena Moreno’s administration to boost the city’s depleted reserves by selling the rights to future lease payments from the Caesars Casino and Hotel.
BGR, a good government nonprofit, said the deal “makes sense for building emergency reserves.” But without adequate safeguards for the funds, “the City risks repeating the same financial mistakes that led to the crisis in the first place.”…