NEW ORLEANS — The State Bond Commission is expected to authorize the City of New Orleans to sell $125 million in bonds to cover payroll amid a cash flow crisis. In exchange, the city council voted unanimously to let the state auditor monitor how the bond money will be spent.

The council voted unanimously Thursday to approve an ordinance that creates a dedicated fund for the loan and sets rules for how the money can be used.

The council hopes that creating the fund and allowing the auditor to oversee city spending will convince the State Bond Commission— which has to approve the city’s bond sale plan— that the money will be managed properly. No money can be withdrawn or transferred without the legislative auditor's approval.

The move comes after Mayor-elect Helena Moreno and council memb

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