BGR Asks City Council to Change Process for Evaluating S&WB Funding Proposals

By Biz New Orleans Staff

November 30, 2023

NEW ORLEANS — From the Bureau of Governmental Research:

At the end of this week, the New Orleans City Council will reset property tax rates based on the recent rise in property assessments. The Sewerage and Water Board (S&WB) has asked the council to keep three property taxes dedicated to the drainage system at their 2023 rates. This would generate nearly $13 million more per year to maintain the city’s major drainage system, including drainage pumps and the electrical power that runs them. But the council, which has expressed general concerns about tax increases and the S&WB’s performance, appears poised to reject the request.

The Bureau of Governmental Research (BGR) has noticed a lack of a formal review process and public dialogue between the S&WB and City Council on this issue. While BGR does not have a position on the utility’s funding request, we are concerned that important public conversations regarding the drainage system’s financial needs and the council’s concerns are missing.

In a November 28 letter to the City Council, BGR recommends that the council create a formal process to objectively evaluate S&WB funding proposals for the city’s water, sewer and drainage systems. BGR also recommends that the council develop a stronger framework for oversight that relies more on regular accountability, instead of the council’s control over S&WB funding sources, to improve the S&WB’s performance. More detail on these and other recommendations can be found in BGR’s May 2023 S&WB governance report.

Combined, these changes would strengthen accountability, transparency and the sustainability of critical infrastructure. They would help the public better understand the S&WB’s operational and infrastructure needs that prompt its funding proposals, as well as the council’s rationale for approving or rejecting a request. A stronger oversight process would keep the council informed throughout the year and ready to respond to S&WB issues or requests.

Fair Use Notice

This site occasionally reprints copyrighted material, the use of which has not always been specifically authorized by the copyright owner. We make such material available in our efforts to advance understanding of issues and to highlight the accomplishments of our affiliates. We believe this constitutes a “fair use” of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is available without profit. For more information go to: US CODE: Title 17,107. Limitations on exclusive rights: Fair use. If you wish to use copyrighted material from this site for purposes of your own that go beyond “fair use,” you must obtain permission from the copyright owner.