Politics
New Orleans City Council Passes Stormwater Fee Ordinance, Property Owners Face First Bills in January 2027
The July 7 vote sets a phased rollout that will add an annual stormwater fee to utility bills for most residential and commercial parcels beginning next year.
How we reported this
The New Orleans City Council approved an ordinance on July 7 that establishes a dedicated stormwater fee to support drainage infrastructure upgrades. The measure applies to all improved parcels within city limits and directs collections through existing utility accounts. Residents and businesses will first see the new line item on bills issued after January 1, 2027.
Why the ordinance reached the council floor this summer
The vote followed the release of the city’s 2027 capital budget projections, which identified a $120 million shortfall in drainage maintenance funding. Council members cited repeated flooding events in the Lower Ninth Ward and Lakeview neighborhoods during the 2025 hurricane season as the immediate trigger. The ordinance itself states that revenues must be deposited into a restricted account used solely for pump station repairs and canal dredging contracts.
Local residents will encounter the fee in two stages. Single-family homes under 2,000 square feet will pay a flat annual rate of $96, while larger properties and commercial sites will be assessed according to impervious surface area measured by the Department of Public Works. Collection begins with the first quarter utility statement mailed in early 2027, so most households will notice the change when they pay their February bill.
Next steps and payment schedule
The legislation requires the Sewerage and Water Board to mail a one-time notice to every account holder by October 2026 explaining the calculation method and providing an appeal window for measurement disputes. Property owners who wish to contest their impervious-surface determination must file paperwork before December 15, 2026. After that date the fee amount is fixed for the 2027 calendar year.
City budget documents project that the fee will generate roughly $18 million in its first full year. Those funds are earmarked for three specific projects: rehabilitation of the Florida Avenue canal pumps, replacement of valves at the 17th Street canal station, and lining of 4.2 miles of subsurface drainage pipes in Gentilly. Work on the first of those contracts is scheduled to begin in the second quarter of 2027.