Seven Percent Hike Proposed By DEP
New Yorkers may need to dip a little deeper into their bank accounts to take a shower, wash their dishes or flush a toilet beginning in July as the Department of Environmental Protection (DEP) has once again recommended an increase in the water rate.
Commissioner Carter Strickland announced last Friday, Mar. 30, that he has asked the New York City Water Board for a seven percent raise in the water rate for the city’s 2013 fiscal year, which begins in July. Last year, the board approved a 9.3 percent increase in the rate, which has gone up every year since 1996.
Strickland noted that over the last three fiscal years, the DEP cut more than 15 percent of its operating costs due to budget tightening and to fund other programs such as the green infrastructure initiative and staffing for the Croton Water Filtration Plant and the Ultraviolet Disinfection Facility.
Even so, he stated, the rate increase is needed in order for the city to cover the cost of “debt service” resulting from unfunded state and federal water quality mandates.
“Our proposed seven percent rate increase is the lowest increase in seven years and shows that DEP is doing everything in our power to try and keep rates in check while still delivering a product that city residents can take pride in every time they turn on the tap,” said Strickland. “Though any rate in crease is difficult in these economic conditions, we are clearly moving in the right direction.”
“Since 2002, debt service payments have increased by 176 percent, from $496 million to $1.37 billion, as a result of approximately $15 billion in unfunded federal mandates that translate to higher rates,” he added. “And that trend isn’t completely finished, as debt service is projected to increase by an additional $107 million, or eight percent, in 2012.”
The commissioner maintained that the DEP has “turned the corner” after convincing regulators to defer or eliminate more than $5 billion in unfunded mandates.
Should the seven percent increase be adopted, based on an average consumption of 80,000 gallons of water per year, each single family homeowner will seen an increase from $877 to $939 per year, about an additional $5 per month. The average multi-family unit with metered billing will see an increase from $571 to $610 per year for each dwelling unit, an additional $3.25 per month.
The rate proposal also includes a pilot program to cap the rental payment at the 2011 annual rate of $196 million for the next three fiscal years; it was noted that this figure will be adjusted annually based on inflation. Strickland indicated that this would help the agency save millions of dollars and defer costs.
The New York City Water Board has scheduled public hearings in each of the five boroughs to solicit comments from residents about the water rates.
The Queens public hearing will take place on Thursday night, Apr. 26, at 7 p.m. at Christ the King Regional High School, located at 68-02 Metropolitan Ave. in Middle Village. The Brooklyn hearing will take place on Tuesday night, Apr. 24, at 7 p.m. at P.S. 222, located at 3301 Quentin Rd. in Marine Park.
The Water Board will meet on May 4 to vote on whether to adopt the new rate; if approved, the increase will take effect on July 1.
For additional information, visit www.nyc.gov/nycwaterboard.
