New Orleans advances Stormwater and Right-of-Way fees to fund drainage gap

New Orleans advances Stormwater and Right-of-Way fees to fund drainage gapFacing an inadequate $9 million annual budget for minor drainage, SWBNO is working with consultant Raftelis to finalize a rate structure and Right-of-Way fee proposal by mid-August to secure sustainable infrastructure funding.

SWBNO currently receives roughly $9 million annually for minor drainage, which staff say is insufficient to meet the industry standard of cleaning 20% of assets yearly.

Financial consultant Raftelis is developing the fee structures, with a formal Right-of-Way fee proposal expected by mid-August 2026.

The utility assumed responsibility for the minor drainage system in January 2025 and cleaned 9,000 catch basins that year, up from 5,900 in 2024.

Officials cited concerns over the long-term reliability of existing city-controlled funding sources, such as traffic camera fines.

The Sewerage and Water Board of New Orleans (SWBNO) is accelerating plans to implement new Stormwater and Right-of-Way (ROW) fees to establish a dedicated funding stream for its minor drainage system. During a July 2026 strategic planning update, SWBNO Chief of Staff Jamie Parker confirmed that the utility is collaborating with the City, City Council, and financial consultant Raftelis to develop the new rate structures. Following a recently approved contract amendment requested by the City administration, Raftelis is actively exploring the ROW fee, with a formal proposal anticipated by mid-August. The push for new tariffs follows SWBNO's assumption of responsibility for the city's minor drainage system in January 2025. While the utility has ramped up maintenance—cleaning 9,000 catch basins and removing 10.6 million pounds of debris in 2025, up from 5,900 basins and 4 million pounds in 2024—officials warned that current funding levels fall short of operational needs. Director of Drainage Networks David Cappel stated that the utility currently receives approximately $9 million annually for the minor drainage system. He noted this amount is insufficient to optimally operate the system or meet the industry standard of cleaning 20% of system assets each year. Committee members expressed concern over the sustainability of existing revenue streams, such as city-controlled traffic camera fines, highlighting the critical need for a dedicated stormwater fee or similar mechanism to cover long-term operational costs. In addition to the fee development, SWBNO is refining its maintenance strategy. The drainage networks team is currently prioritizing catch basins with multiple outstanding 311 service requests and plans to explore new data sources, such as the City Real Time Crime Center, to ensure cleanings are deployed efficiently and equitably across watersheds.