Lawmakers give New Orleans City Council added authority over Sewage and Water Board after committee vote

The Senate Committee on Local and Municipal Affairs reported House Bill 1243 as amended after a full-afternoon debate about how to return local control and accountability to the New Orleans Sewage and Water Board.

Representative Joseph Hilferty, the bill’s sponsor, told the committee the measure ‘‘empower[s] the council of Orleans Parish to have more authority over Sewage and Water Board’’ so the council can act more quickly after breaks and flooding rather than waiting for the legislature. He said the change is intended as a step toward treating sewer, water and drainage like a standard municipal public works department.

Council President JP Morrell, who testified in support, said the council and mayor worked closely with the governor’s office on the bill and that previous limited legislative fixes (for example, changes to the billing process) had reconciled ‘‘34,000,000 in bad bills’’ and showed the council can correct urgent problems when given authority. Morrell added the bill includes an amendment to clarify that assets paid for with locally issued bonds remain Sewage and Water Board assets, language cleared with the governor’s office and city negotiators.

Rebecca Mowbray, president and CEO of the Bureau of Governmental Research, urged the committee to add a requirement that the city produce a transition plan or charge a study committee. ‘‘This bill breaks the current system but doesn’t state where it’s going,’’ she said, noting the utility’s scale: an operating budget of about $434,000,000, a capital budget of about $360,000,000 and more than 1,200 employees. BGR recommended a formal planning process to identify governance and transition steps before the statutory changes take full effect.

Senators pressed both sides on practical issues: how long a temporary council-led structure would last, what bond obligations must be unwound before the utility could be folded into a municipal department, and what legal and fiscal constraints would remain. Representative Hilferty and Council President Morrell said the bill is intended to be a framework for local action while stakeholders—bond counsel, the mayor’s office, the council and the legislative delegation—work through debt and transition details.

Senator Morris opposed delaying the measure for more study, saying the board’s performance ‘‘does not serve the people and businesses of New Orleans well’’ and arguing the council should be given authority to try to improve operations immediately. Others, including witness Mowbray, cautioned that a transition without a documented plan could create uncertainty about employee status, bond obligations and long-term governance.

The committee adopted an amendment (set 3228) clarifying asset ownership language and accepted an earlier amendment to place the council’s temporary authorities into statute in a defined posture. Senator Cathy moved to report HB1243 as amended; with no objection the committee approved the motion and the bill was reported as amended.

Next steps: HB1243 was reported to the Senate calendar as amended and may be considered on the floor; lawmakers and local officials said they will continue negotiating implementation details—particularly bond and transition planning—before final enactment.