New Orleans weighs stormwater fee to fund aging drainage infrastructure

(UI) - New Orleans officials are exploring a parcel-based stormwater fee as part of a broader effort to address aging drainage and water infrastructure systems facing increasing pressure from climate impacts and long-term underinvestment. 

The proposal, which has been publicly discussed by the Moreno administration, would require property owners to contribute to drainage and drinking water infrastructure funding based on parcel characteristics rather than relying primarily on water rates and property taxes, Biz New Orleans reported. Supporters say the approach could create a more stable long-term funding source while expanding participation to include many tax-exempt properties.

According to Biz New Orleans, a recent Bureau of Governmental Research analysis estimated New Orleans’ drainage system may require an additional $35 million to $60 million annually to meet maintenance and infrastructure needs. Community organizations, including The Water Collaborative, have been involved in discussions surrounding equitable stormwater funding and long-term resilience planning.

Advocates say the funding debate reflects broader concerns over aging underground infrastructure, flood resilience and the growing strain climate change is placing on Southeast Louisiana’s water and drainage systems.

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