ATLANTA -- New Orleans will ask voters on July 13 to approve a referendum to restructure the city's general obligation debt, now that Louisiana officials and city business leaders are endorsing the plan.

The restructuring, which revives a refinancing plan that was scrapped in April, would stretch the final maturity of the city's $368.8 million GOs to 2021 from 2004, freeing up about $19 million of debt service annually. This money will be used to close the city's current $15 million operating deficit and provide for a 30-year capital improvement program. Under the current arrangement, the city will run out of operating funds after June 30.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.