New Orleans Drainage Shakeup Soaks Small Homes While Mansions Catch A Break

By Erica Campos

Source: Hoodline

May 21, 2026

The Sewerage & Water Board on Thursday backed its consultant for another round of work on a controversial stormwater plan that would trim bills for many higher-value homes while shifting more costs onto a lot of smaller or lower-assessed properties. The two-part proposal pairs a consolidated drainage property tax with a new use-based fee that tracks how much of a lot is covered in hard surfaces. Board members said the package is meant to close a multiyear gap in money for drainage operations and maintenance.

At a joint Finance & Strategic Planning meeting, board members approved Amendment No. 3 to the agreement with Raftelis, bumping the firm’s authorized pay from about $1.14 million to roughly $1.64 million, and told the consultants to keep refining a stormwater-fee proposal, according to the Sewerage & Water Board. The packet directs Raftelis to sharpen rate options, model how different properties would be affected, and suggest credit and affordability provisions for the board to review later.

How The Draft Would Rewire Who Pays

The consulting team’s preferred middle-ground option would roll three drainage millages into a single tax and cut the overall drainage rate by a proposed 15%, then bolt on a stormwater fee that charges by impervious surface using an ERU system. In that setup, property taxes and the new fee would each bring in about half of drainage revenue. Raftelis’ work also highlights roughly $50 million a year in unmet drainage needs if current revenue is not replaced or expanded, according to the Bureau of Governmental Research.

Who Stands To Gain Or Lose

The board materials stress that the fee is supposed to pull tax-exempt and large impervious parcels into the funding pool while lowering the tax rate on properties that already shoulder most of the load. In practice, the mechanics could mean many owners of modest homes, especially those with big driveways or paved yards, end up paying more even as some higher-assessed owners see their overall bills go down, according to the Sewerage & Water Board.

Examples And Early Reaction

Impact slides from Raftelis that were shared with the board sketch out how that split could play out. An owner of a $776,000 home would see about a $158 cut in drainage charges, and a $7,000,000 homeowner could save roughly $1,600. On the flip side, an owner of a $145,000 home could see an increase of about $392, while a $215,000 home might pay roughly $292 more. Those examples and the early political blowback were reported by NOLA.com, which also quoted City Council President JP Morrell labeling the concept a “double tax.”

Why Backers Say It Matters

Supporters of the blended tax-and-fee model argue that tying charges to runoff makes the system fairer and encourages on-site fixes, since the plan would offer credits for green infrastructure. Independent reviews point to current drainage revenue of roughly $74 million and warn of a sizable gap in day-to-day operations and deferred maintenance. Proponents say the mix of a reduced tax rate and the new fee could help close that gap while still building in credits and protections for affordability, as laid out by the Bureau of Governmental Research.

What Happens Next

Raftelis is set to keep adjusting scenarios, and the board materials call for public hearings, an appeal process for property owners, and a simplified single renewal date for the unified drainage tax before any ballot language is drafted. Any new fee would still require additional board action, scrutiny from the City Council, and likely a vote of the people before it could take effect, NOLA.com reports.

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