New Orleans pivots to parcel fee model to fund critical drainage infrastructure

New Orleans pivots to parcel fee model to fund critical drainage infrastructureThe Sewerage and Water Board of New Orleans has authorized Raftelis to expand a feasibility study into a proposed parcel fee, aiming to capture revenue from tax-exempt entities that currently do not contribute to the city's stormwater system.

The board approved an amendment with Raftelis Financial Consultants to develop a parcel fee framework.

The fee would target tax-exempt nonprofits, which account for 40% of assessed property values in the city.

A potential public ballot measure has been shifted from December to next May to allow for extensive stakeholder engagement.

The Sewerage and Water Board of New Orleans (SWBNO) is shifting its strategy to secure sustainable infrastructure funding, pivoting from a pure stormwater fee to a broader parcel fee model. During its June 17, 2026 meeting, the Board of Directors approved Resolution R-068-2026, authorizing an amendment with Raftelis Financial Consultants to conduct a feasibility analysis and develop the new fee structure. The shift was requested by the city administration to create a bundled fee supporting drainage system operations, green infrastructure, and street maintenance. A core objective of the parcel fee is to capture revenue from tax-exempt nonprofits, which currently do not contribute proportionally to the system's upkeep despite utilizing public right-of-ways and generating stormwater runoff. Stephen Nelson, the city's Deputy Chief Administrative Officer of Infrastructure, noted during the meeting that tax-exempt entities make up roughly 40% of the city's assessed property values. The proposed fee would utilize metrics such as impervious surface area and trip generation to calculate equitable charges. "We have to start with equity and end with equity," Nelson told the board. "We cannot have a burden that's higher on those who are already paying. The number will be whatever is fair and equitable between those different groups." The board acknowledged that securing public buy-in is critical, given the city's pressing drainage needs and historical resistance to new fees. Consequently, the target date for a public ballot measure has been pushed from this December to next May. Officials stated the extended timeline is necessary to develop a comprehensive communication plan and incorporate public feedback into the final fee structure. Board directors stressed the importance of transparency, questioning how the utility will guarantee that the generated funds are strictly dedicated to drainage and infrastructure improvements. Nelson confirmed that the City Council will oversee budget reviews to ensure that revenues from the parcel fee are transparently allocated and applied directly to intended projects. The initiative received backing during the meeting's public comment period. Anna Nguyen, representing the Water Collaborative of Greater New Orleans, urged the board to move forward, highlighting a recent poll showing 71% of residents support dedicated stormwater funding when coupled with community oversight. "We believe everybody who benefits from the drainage system should contribute fairly towards maintaining it, including tax-exempt properties that currently contribute little or nothing," Nguyen said. The expanded scope for Raftelis will establish the framework for upcoming public meetings, where the fee structure will be further refined before being presented to voters.