In a bid to win state approval for its request to sell $125 million in emergency bonds to ease the city's cashflow crisis, the New Orleans City Council approved an ordinance creating a dedicated fund for the bond proceeds that would be overseen by the state auditor.

The council passed the ordinance Thursday to give officials on the State Bond Commission — which still must sign off on the city's plan to sell the bonds — assurances that the revenues won't be misappropriated. The measure was part of a deal that Mayor-elect Helena Moreno and other City Council members hashed out with state officials during at a closed-door meeting in Baton Rouge on Wednesday.

Under the ordinance, the money in the fund can only be tapped through a council resolution, and only for select purposes, including

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