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In this issue of BGR Outlook On Orleans, BGR reviews
the arguments for and against two fee proposals presented
by the Sewerage and Water Board and now before the
New Orleans City Council for review. |
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The Sewerage and Water Board proposed a new drainage
service fee in August that, if approved, would cost the
average residential customer $6.82 per month. |
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Arguments for the new fee include the opportunity to increase
drainage capacity using 75 percent matching federal funds and
the fact that as a user charge, there are no required exemptions
as there are for the property taxes dedicated to drainage. |
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Arguments against the drainage fee proposal include the additional
cost to now-exempt homeowners, and the state law requiring that a
drainage charge must first win voter approval before going into effect. |
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A proposed 38 percent increase in sewerage fees is also before
the City Council for consideration. Some increase in the sewerage
charge appears necessary to meet terms agreed to in a 1998
Consent Decree with the Environmental Protection Agency. |
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No change in the water rates have been proposed, but BGR
suggests
some increase will probably be necessary in the near future to cover
bond debt requirements and to meet just-announced EPA guidelines
for treating water. |
