BGR head: Local takeover of SWB has promise, but cautions remain

By Rebecca Mowbray

Source: The Times-Picayune | NOLA.com

August 21, 2026

City officials are exercising new control over the Sewerage & Water Board of New Orleans, which could ultimately lead them to fold it into city government. If that happens, it would be the most important shift in the water, sewer and drainage utility’s 127-year history. Residents should pay close attention.

Consolidating the S&WB into the city should substantially resolve the governance issues behind the flooded streets, water main geysers and sewer line breaks that residents have long experienced. That’s because folding the water utility’s functions into city government will strengthen local oversight and accountability and make the City Council clearly responsible for properly funding it.

But the path to stronger city control, activated by Act 938 of this spring’s legislative session, could be messy. The legislation creates a vehicle for change but does not define the final form of a future S&WB. Mayor Helena Moreno created a transition committee — the Public Utility Modernization Process Subgroup (PUMPS) — as we at the Bureau of Governmental Research had recommended during the legislative session. That group is developing the process in real time, so it’s not hard to imagine delays in the studies it requested, new challenges with day-to-day decision-making or difficulties integrating an entity with more than 1,200 employees and hundreds of millions in operating and capital budgets.

PUMPS members meet in private, and the public will learn of proposals only when they’re introduced to public bodies, so residents should be ready to speak up if they have concerns. Council members have said they understand the “you break it, you own it” concept and will be accountable if something goes wrong, but they should strive to balance proper planning with an efficient transition.

As a first foray into greater city control, the ordinance and motions passed by the council on Aug. 6 hold a lot of promise. The utility’s operating and capital budgets will now be part of the city’s budget processes, and the legislation requires that “the approved budgets shall be sufficient to ensure S&WB’s ability to provide safe and reliable water, sewer, and drainage services.” The “safe and reliable” language appears similar to the standards set for Entergy New Orleans and Delta Utilities. If this standard can support the council’s fiduciary obligation to adequately fund our water systems, that’s a huge step forward.

Previously, council members had only the powers delegated to them by the Legislature and were understandably frustrated that they couldn’t compel enough information to assess the utility’s financial needs. Council members frequently expressed their displeasure with the utility’s performance by playing the only card they had — denying funding — which precipitated decades of disinvestment in the system. Now the city may have a duty to properly fund the utility to ensure “safe and reliable” performance and can require the SWBNO to produce data to demonstrate how much money it needs.

BGR has long called for the council to have a more objective and thorough process for reviewing the utility’s funding requests, whether it remains a stand-alone agency or becomes part of city government. Careful funding decisions are essential to sustainability. The council hasn’t yet proposed a regulatory framework, but the new ordinance has more detailed reporting requirements than previously existed in state law, and the council can require “any additional information necessary to fulfill its regulatory responsibilities.” Moreover, the ordinance requires the SWBNO to pay the costs of regulating the utility, which can further support a real process with real analyses. BGR will monitor the issue closely, as appropriate funding will be key to upgrading infrastructure and improving performance.

Bottom line: We’re in a high-risk, high-reward scenario. The changes underway could mark a new day for addressing our water woes, and our public and elected officials should be commended for tackling such major challenges. But there are any number of ways this could go awry. We all need to pay attention to how the PUMPS process unfolds and any governance changes that voters are asked to decide.

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