Politics
New Orleans Drainage Levy Shifts Fees to Commercial Properties for Residential Upgrades
Homeowners in areas such as Gentilly and Lakeview will see targeted drainage work funded by higher charges on business parcels under the city's 2026 budget.
How we reported this
The New Orleans City Council adopted the 2026 Drainage System Improvement Levy on July 7, raising annual stormwater fees on commercial and industrial parcels by an average of 18 percent while holding residential rates steady. The change reallocates revenue toward pump station repairs and canal clearing in neighborhoods that experienced repeated street flooding during the 2025 hurricane season.
City budget documents show the levy is projected to generate 12.4 million dollars, with 65 percent directed to residential drainage basins identified in the 2024 Stormwater Master Plan. Officials tied the timing to the expiration of federal recovery grants that previously covered similar work and to the need to match state capital outlays for the 17th Street Canal project.
Effects on residents and businesses
Property owners in the French Quarter and Central Business District will pay the largest increases, with some hotels and office buildings facing an added 2,400 dollars per year. In contrast, single-family homes in Gentilly and Lakeview will receive scheduled maintenance on subsurface drains without a corresponding fee hike, according to the Department of Public Works schedule released with the ordinance.
Local advocates note that small retail corridors along Magazine Street and in Mid-City could pass some costs to tenants through higher rents, while households in flood-prone blocks stand to gain from faster response times during heavy rain events. The legislation states that commercial exemptions remain available only for parcels already certified under the city's green infrastructure program.
Next steps
Assessment notices will be mailed beginning August 15, with the new rates appearing on October 1 property tax bills. The Department of Public Works has scheduled the first round of residential canal work for November in the Gentilly basin, using the additional revenue to extend contracts with two local engineering firms already on city rosters.