New Orleans utility targets multifamily arrears with tougher shutoff and payment-plan terms
Sewerage and Water Board of New Orleans, Louisiana · Meeting date: October 15, 2026 · Published: October 16, 2026
The Sewerage and Water Board of New Orleans is considering raising the multifamily service-disruption threshold from five to eight units per meter and requiring larger upfront payments for new PromisePay plans. Staff linked the changes to mounting receivables, recent debt-repayment obligations and the need to strengthen cash collection.
Key points
- The utility said many of its 100 largest debtors are multifamily customers, together owing more than $20 million.
- Staff proposed allowing disconnections for eligible delinquent multifamily properties with up to eight units per meter, versus the utility's historical voluntary limit of five units.
- New PromisePay plans could require a 4% upfront payment for residential customers and 6% for commercial customers; existing plans would not change.
- The committee recommended unchanged 2027 drainage millage rates and advanced the resolution to the board.
Full report
The Sewerage and Water Board of New Orleans is considering a more forceful approach to collections from multifamily properties and commercial customers, after staff told the Finance and Administration Committee that multifamily accounts now make up many of the utility's largest debts.
The utility has historically voluntarily limited service disruptions for non-payment to properties with no more than five units per meter, an approach adopted during and after the Covid period to avoid disrupting tenants who were not responsible for a landlord's delinquent account. There is no formal policy restricting the number of multifamily units per meter that can be disconnected, staff said.
The proposed next step is to raise the threshold to eight units per meter for eligible non-paying properties. Staff said the change would improve recovery of revenue while retaining what it described as a measured enforcement strategy. Many of the utility's top 100 debtors are multifamily customers, collectively representing more than $20 million in outstanding receivables.
The proposed collections overhaul would also tighten entry requirements for new PromisePay payment plans. Customers can currently enter a plan with a $10 down payment regardless of their balance. Under the proposal, residential customers would pay 4% of their outstanding balance at enrolment and commercial customers 6%. Staff said that would equate to about $69 for a typical residential plan and about $240 to $250 for a typical commercial plan. The minimum monthly commercial payment would rise from $25 to $125, while residential minimums would remain unchanged. Existing plans would not be affected.
As of 31 July, the utility had more than 16,000 residential payment plans and more than 500 commercial plans. In August, it reported 17,780 total payment plans, with enrolment up 1% month on month. The retention rate was described as being in the upper 80% range.
The proposals came as the utility reported net customer receivables of $53.2 million at the end of August. Its past-due category stood at $61 million, down about 5% from July, principally because of reductions in commercial and multifamily past-due balances. Closed accounts accounted for $21 million of receivables; staff described this as unsecured debt where customers have vacated a property.
Separately, the committee voted to recommend unchanged 2027 drainage millage rates, with no roll-forward or roll-back from fiscal 2026. The resolution asks the city treasury to levy, assess and make the three existing millages available to the drainage system in 2027.
This summary was generated by AI based on the source document and may contain errors.
Source: Finance Committee, Sewerage and Water Board of New Orleans