The Council approved Ordinance No. 32,010 to establish a Judgment Fund to dedicate certain funds for the payment of legal judgments rendered against the City.
In a separate resolution, the Council granted preliminary approval for the issuance of up to $10 million of Taxable Limited Tax Bonds in order to service a large portion of these outstanding unpaid judgments.
"I thank you all for handling all the technical aspects for what I believe is overdue and what is our moral imperative to do," said Councilmember-At-Large Jason Williams. "History has told us that these judgments will be a recurring expense and we have to ensure to our citizens that we will be legally and morally responsible for our obligations. I think this is a step in the right direction for this Council in not continuing to kick a can down the road just because the law allows us to do so. We've seen those results for over a decade with the S&WB and in other areas, so this is one area where we can step up and finally do the right thing."
District "A" Councilmember Susan Guidry thanked Councilmember Williams for taking the necessary steps to bring this ordinance to the Council, noting that she and Councilmember Head have been pushing the City for several years to work more quickly and efficiently in paying these debts.
In Louisiana, state courts are unable to seize assets from other government bodies, therefore, there is no concrete way of forcing payment. As a result, the City holds a long list of unpaid settlements, which over time, have amounted to approximately $40 million.
"The City has long ignored paying judgments due to a loophole in state law," said District "D" Councilmember Brossett. "If the City expects citizens to pay their debts, we must pay ours as well. As we prioritize critical services throughout our government, we must also create a sustainable pathway to pay the judgments we owe. I am proud to support this measure to ensure our people finally receive the money they deserve."