In a November 28 letter to the New Orleans City Council, BGR expressed concern that the council does not have a formal process to evaluate funding requests from the Sewerage and Water Board of New Orleans (S&WB). The lack of such a process poses significant risk to the operations, maintenance and performance of essential infrastructure.
Highlights
At the end of this week, the City Council will reset property tax rates based on the recent rise in property assessments. The 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 its 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.