New Orleans S&WB reforms to billing problems, catch basin cleaning moves through legislature (2024)

A series reforms to the New Orleans Sewerage and Water Board moved forward in the Louisiana Legislature on Thursday, with lawmakers advancing bills to address widespread water billing problems and to give it full control of the New Orleans drainage system, including the portion currently overseen by City Hall's public works department.

Two bills approved by both legislative chambers on Thursday would would give S&WB customers the options of receiving fixed bills until new "smart meters" are installed, create a new way to dispute inaccurate bills and prohibit the S&WB from using estimates in calculating water usage. Those bills, sponsored by state Rep. Stephanie Hilferty, R-New Orleans, and state Rep. Matthew Willard, D-New Orleans, now head to Gov. Jeff Landry for his signature.

A third bill, sponsored by state Sen. Jimmy Harris, D-New Orleans, would force a major change to how the city's drainage system operates by giving responsibility for catch basins and small pipes currently maintained by the city's Department of Public Works.Those parts of the system have to function properly so that water can flow to the S&WB's canals, culverts and pumps that remove storm water from the city.

Harris's SB305, which is widely supported, passed a House Committee on Thursday and awaits a vote by the full chamber before heading to Landry's desk.

Splitting up New Orleans drainage management between two different agencies has long been recognized as a failed experiment that contributes to chronic street flooding.

Attempts overthe years to consolidate the system under one roof have repeatedly broken down amid arguments over funding. But Harris’s bill has earned the support of the City Council, the S&WB and the administrations of Mayor LaToya Cantrell and Landry.

Drainage consolidation was a key recommendation of Landry’s special task force on S&WB reforms earlier this year. The report from that task forceinitially garnered concernsfrom New Orleans officials because it excluded any elected leaders from city government and threatened a state takeover of the utility.

Takeover talk quickly fizzled, however, and Harris on Thursday praised the Landry administration’s collaboration on the consolidation bill, which also calls on S&WB leadership to meet with state officials in developing flood prevention plans.

“As it relates to the city of New Orleans, a lot of times Jeff is looked at as the Antichrist," said Harris. "But I can tell you, in this situation, he's been rock solid in trying to work with us and fix this problem.”

What will consolidation cost?

The current set-up of the city's drainage system, with catch basins and small pipes managed by Public Works and larger pipes, pumps and canals managed by the S&WB, has been in place since 1992. At the time, voters defeated an S&WB drainage millage and City Hall agreed to assume responsibility for what's known as the "minor system."

Since then, City Hall and the S&WB have often failed to coordinate maintenance and storm response. The city’s 72,000 catch basins are in poor shape and often clogged with debris due to years of shoddy maintenance and underfunding.

Council members and the S&WB now appear to be negotiating in earnest about giving the utility enough money to properly maintain the catch basins — perhaps $40 million annually for the first few years, and nearly $30 million after that — and determining where the money will come from.

The relationship between council members and utility leaders has been tense in recent years, with arguments over water billing reforms, rate increases and a number of other issues. But three citywide street floods since December have spurred public outrage over the system's failures, which council members and S&WB officials say has not been lost on them.

“The pressure we really feel is from residents,"said City Council member Joe Giarrusso. "They just want the drainage fixed.”

There is still a ways to go before the council and S&WB come to an agreement. The $30 to $40 million estimate is what Giarrusso said the S&WB has conveyed as needed. He said council members are still evaluating it.

An S&WB spokesperson, Grace Birch, did not confirm those figures, but said utility officials are working closely with council members and the Cantrell administration to come to an agreement.

“Preliminary numbers have been discussed and talks are ongoing. There are still investigations to be done to know how much investment will be required to repair breaks, settlement and other issues we know exist,” Birch said in an email.

Possible funding sources

Harris’s bill also requires the city to provide the S&WB with whatever amount it spent on catch basins in 2023, although that figure is likely just a couple million dollars — the exact amount is unclear. Additional city funding would depend on the council.

The public works department is currently working with contractors to clean 7,000 catch basins with $10 million in one-time federal funding, and Giarrusso said the council will consider including that amount in the calculation of what the city owes under Harris’s bill.

Ticket revenue generated by traffic cameras is another possibility for where funding could come from. Hilferty’s amendment to another bill, SB302,which includes requirements for how traffic camera money is used in all jurisdictions, would direct all revenue from New Orleans cameras that are not in school zones to drainage.

That amount is not clear, but Giarrusso said it would likely be “several million dollars.”

Another possibility is funding dedicated to public works through the “fair share” deal, which Cantrell struck with state officials to redirect some tourism revenue to city infrastructure. That is estimated to be $5.8 million this year.

One funding source that is not on the table, at least for now, is a new drainage fee, which the S&WB has recently signaled it will seek to keep up the portion of the system it already maintains. Giarrusso said the council will not consider a drainage fee until the utility’s billing system is fixed, but he and his colleagues are intent on cobbling together whatever the S&WB needs.

“We do not want to set it up for failure,” Giarrusso said.