DEP: Cost-Cutting Reduces Spike
The city’s water rate is poised to climb again-but according to the Department of Environmental Protection (DEP), the squeeze on property owners will be gentler than in previous years.
DEP Commissioner Emily Lloyd announced last Wednesday, Apr. 23, the agency recommends a 3.35 percent water rate hike to the New York City Water Board for the 2015 fiscal year, which begins this July. The uptick, Lloyd stated, is the lowest in nine years, more than two points below last year’s 5.6 percent spike and less than half of the projected 7.8 percent increase for the upcoming fiscal year.
However, the commissioner noted the Water Board would be asked to freeze minimum water and sewer charges for property owners who use less than 100 gallons of water per day-about 25 percent of all singlefamily homes.
The minimum daily charge for these residents-many of whom, Lloyd stated, are senior citizens- would remain $1.27 per day.
“By cutting costs, refinancing higher interest debt and reducing the rental payment, we are able to deliver the lowest rate increase in nearly a decade, and the 25 percent of singlefamily homeowners who use the least water will not receive any increase at all,” Lloyd stated. “In addition, we have put together a package of six initiatives to provide relief for customers who experience a leak or [an] unusually high bill, and to make the appeals process easier and faster.”
The cost-cutting measures included redirecting 10 percent of its 2014 rental payment to the water and sewer system, saving ratepayers $22 million. Further savings were achieved through the previous refinancing of $7.9 billion in DEP debt since 2009, which put $2.3 billion back in the city’s coffers over the past five years.
Higher-than-anticipated revenues are also stemming the water rate tide, according to the DEP. Through Apr. 21, the agency reported collections were six percent higher ($166 million) than previously projected; this was attributed to the installation of Automated Water Readers (AWR) systems, which are now activated at 96 percent of properties in the five boroughs.
Reportedly, the DEP also held costs down by eliminating or deferring $3.4 billion in unfunded projects mandated by the state and/or federal government. Rather than replace existing infrastructure with similar devices, the DEP invested in green infrastructure such as curbside bioswales (which trap rain water).
Still, the DEP noted, about $265 of a property owner’s average water bill is spent on projects to fulfill state and federal mandates such as the Croton Water Filtration Plant upstate and an ultraviolet disinfection facility. The projects costs $4.8 billion combined, but the city is responsible for most of its funding.
Should the 3.35 percent water rate increase take effect, a typical single family homeowner using 80,000 gallons of water annually will see their yearly payment jump over the $1,000 mark, to $1,025 per year, up $33 from the current year. It averages out to $2.75 more per month for water and sewer services.
Owners of units in a multi-family, metered building based on an average annual consumption of 52,000 gallons of water per unit will see per-unit yearly bills jump from $645 to $666, less than $2 more per unit, per month.
Along with the proposed water rate increase, the DEP will also request approval of a number of initiatives designed to help property owners pay their bills, including:
– a low-income assistance program funded by the city to identify homeowners eligible to receive an annual credit on their bills;
– expanding the Leak Notification Program-in which the DEP, through its AMRs, alerts customers to sudden spikes in water usage-to allow partial forgiveness of leak-related charges to customers who fix a leaky toilet, faucet or other maintainable fixture within 60 days of receiving an abnormally high bill;
– extending the deadline for customers to appeal their water bills to the Water Board from 30 to 60 days;
– suspending the lien sale process for customers whose appeal of an outstanding water bill is pending; and
– suspending interest for 90 days for customers who receive a “catchup” bill after the installation of AMR on their property.
Residents will get a chance to speak out about the DEP proposal during Water Board public hearings this month in each of the five boroughs.
The Brooklyn hearing will take place at 7 p.m. on Wednesday, May 14, at the Newtown Creek Water Treatment Plant visitor center, located at 329 Greenpoint Ave. in Greenpoint. The Queens hearing is scheduled for 7 p.m. on Tuesday, May 20, at the Bayswater Jewish Center, located at 2355 Healy Ave. in Far Rockaway.
The New York City Water Board will formally adopt the final Fiscal Year 2015 water rate at its May 23 meeting.
