Following major changes approved by the Louisiana Legislature this year, New Orleans leaders are evaluating how the Sewerage & Water Board should be governed in the years ahead. The Public Utility Modernization Process Subgroup (PUMPS) was created to advise the mayor, City Council and Infrastructure Coordinating Council as New Orleans transitions to local control of the utility.
To help inform that work, BGR recently sent PUMPS members a summary of 15 years of research on S&WB governance and offered to discuss its findings with the group.
Why it matters
PUMPS is examining questions that could shape how the Sewerage & Water Board is governed, overseen and funded for years to come. The group’s recommendations will help guide city leaders as they implement changes resulting from Act 938 and consider longer-term reforms that would improve service and reliability for residents.
What PUMPS is considering
Among the questions under discussion:
- Should the S&WB remain a separate utility or eventually become part of City government?
- How should the City Council exercise its expanded oversight authority under Act 938?
- What governance and accountability structures would best support utility performance?
BGR’s take
BGR argues that recent legislative changes create an opportunity to address governance issues that have persisted for years, but only if the City uses its new authority carefully and plans deliberately for integrating the utility into City government. The research points to a longstanding disconnect between responsibility for operating the utility and authority over funding decisions, which BGR says has made accountability more difficult and complicated long-term planning.
BGR’s letter lays out how that integration could unfold, including new guidance based on planning and structuring a public sector merger.
BGR encourages City leaders to:
- Strengthen review of utility funding requests.
- Establish ongoing oversight of utility performance.
- Use the authority granted under Act 938 to address longstanding governance concerns.
- Begin planning now for a municipal utility model.
BGR has studied Sewerage & Water Board governance for well over a decade. Much of the research shared with PUMPS draws from Waterworks in Progress: Reassessing the Sewerage & Water Board’s Governance Problems and Potential Paths to Long-Term Improvement, BGR’s 2023 examination of governance challenges and reform options for the utility.
The summary also references BGR’s 2023 letter on City Council review of utility funding requests and Paying for Drainage, which examined drainage governance and funding following consolidation of the City’s drainage responsibilities under the S&WB.
The letter to PUMPS is part of BGR’s ongoing effort to provide research as city leaders consider major infrastructure decisions. Earlier this month, BGR also shared research with the City’s Parcel Fee Task Force, which is evaluating options for a dedicated source of infrastructure funding.
Read BGR’s letter and research summary to PUMPS: