Nonprofit BGR calls for fairness, transparency in S&WB stormwater fee

By Ben Myers

Source: The Times-Picayune | NOLA.com

January 8, 2026

If the Sewerage and Water Board proposes a stormwater management fee this year to bolster its dilapidated drainage system, it should release a detailed spending plan and explain how the fee will be evenly applied, a nonprofit governmental watchdog urged Thursday.

The Bureau of Governmental Research said in a Thursday report that the proposed fee — which has been embraced by several public officials, including Mayor-elect Helena Moreno — must be “fair, transparent and accountable.”

“By addressing these issues upfront, local leaders can offer voters a fair way to fill New Orleans’ extensive drainage funding gaps, while ensuring public dollars are used effectively and responsibly,” BGR CEO Rebecca Mowbray said in a statement.

In keeping with BGR’s past positions on the issue, Mowbray called the fee idea promising but stopped short of fully endorsing it, since the S&WB has yet to release a proposal.

S&WB officials have for years said a stormwater fee is the best way to raise needed drainage revenue, though they have not said how much they hope to raise. Asked for comment on the report, officials said BGR’s work is valuable as they decide their next steps, but they declined to say when they would announce a stormwater fee plan.

“We will continue exploring options that are equitable for residents and businesses. This new funding stream would enable us to maintain and improve our drainage infrastructure and meet long-term stormwater management needs for future generations,” the S&WB said.

More funding needed 

The S&WB currently pays for drainage needs from three drainage taxes totaling $77 million annually, and one of those — making up about more than a quarter of that amount — will expire next year unless voters renew it in a yet-to-be-scheduled ballot proposition.

Even if the millage is renewed, the S&WB needs an additional $35 million to $60 million annually to pay for operations, maintenance, repairs and capital improvements, according to BGR estimates. That covers both the “major” system of large pipes, canals and pumping stations, as well as the “minor” system of catch basins and small pipes. The annual funding gap grows to as much as $82 million if voters reject the millage.

If a stormwater proposal is released this year — as is likely — its rollout will be intensive, with multiple rounds of public hearings and layers of approvals by the City Council, state officials and New Orleans voters. That process could take the better part of a year. In an interview Wednesday, Moreno said a proposal needs to come as soon as possible.

“We do need to move quickly on a stormwater, drainage type of fee. It needs to be quick,” Moreno said, referring to the millage expiration next year. “It’s just getting the formula right. I do think I have the support in the City Council to try to move something.”

Challenges

Supporters of the idea are quick to note that it could apply to all property owners, including nonprofits and government institutions exempt from property taxes. Nearly 40% of the city’s collective property value is tax-exempt, and stormwater fees are seen as a way to ensure everyone funds the drainage system.

But there are roadblocks. For starters, BGR found that 55% of tax-exempt property in New Orleans is publicly owned, and, for all the cheerleading around everyone paying into the drainage system, there has been little public discussion about the willingness of local, state and federal agencies to pay new fees.

There’s also a legal question as to whether a fee can be imposed alongside millages, or if it amounts to a double tax. BGR said it’s somewhat common for water and sewer utilities to combine taxes with user fees — including in Jefferson Parish — but it could not find any examples of that revenue combination for drainage.

S&WB officials have said homeowners wouldn’t pay more under the proposal than they already pay in property taxes. But it’s not clear how that could be done without increasing the burden on other taxpayers.

“These complexities will need careful legal review and public justification,” BGR said in its report.

BGR also said the S&WB should release a spending plan showing how fee revenue would meet the drainage system’s needs, along with a framework for how the fee would be collected and managed. Fee revenue should be set aside in a dedicated fund, with oversight by the City Council and a citizen advisory board.

“If financial stewardship plans are vague, there is a much greater risk of wasting public resources or failing to address the identified need,” the report said.