In response to the New York City Water Board’s proposed 9.4 % hike in water rates, the largest increase in 13 years, City Councilman James Gennaro lashed out, calling it “not only unjustified - it’s unjust.”
“The Water Board can - and should - cut their proposed water rate increase, and give the residents and businesses of New York City the break they deserve,” said Gennaro, the chair of the Environmental Protection Committee.
Gennaro sent his concerns in a letter to James Tripp, the Water Board Chairman, where he pointed to the fact that the Water Board anticipates a $170 million surplus, $45 million more than expected. Gennaro urged that this should be used to reduce the rate increase to 6.4%.
Last year, the Water Board and Department of Environmental Protection (DEP) adopted a goal of collecting an additional $50 million per year through more aggressive pursuit of delinquent accounts. Unfortunately, the DEP’s collections have fallen shy of the revenue mark, yielding only $15 to $20 million. This poor collection performance has apparently caused the Water Board and DEP to drop its previous goal of $50 million in additional collections and retreat to a goal of collecting an additional $15 million per year on taxes, which is less than is currently being collected.
“Honest, hard-working New Yorkers shouldn’t have to pay for scofflaws to get their water for free,” Gennaro said.
DEP spokesman Charles Sturcken said that if the Water Board, which convenes on Friday May 12 to adopt a new rate that would go into effect on July 1st, does accede to Councilman Gennaro’s suggestions; it would only delay the inevitable. “We would just be adding to next year’s increase,” he said. “It has to be paid along the line somewhere. Next year, we may be facing a higher rate.”
Sturcken said an unexpected additional $80 million in costs, which includes maintaining clean water and harbors and significantly higher costs for electricity and fuel that are needed to operate sewer plants, plus the delinquent accounts, all factored into the decision by the Water Board for the sudden and dramatic increase.