but even at its natural level, isn't the lake higher then the city - I mean, that's the purpose of the levee right? or are you saying that right now, the city has higher water level then the lake?
Yes. The lake got really full with storm surge, broke the levees and flooded the city. Lake's been draining ever since. Water now higher in city than lake. Fixing the levees will keep water in the city. Not good.