REMARKS
Current budget concerns and questions about water rate funding sources
2:27:25
·
142 sec
Council Member Gennaro raises concerns about the current budget year's rental payment and its impact on water rates. He questions the discrepancy between the amount collected from ratepayers and the total rental payment taken by the administration.
- The administration took a $440 million rental payment in the current budget year
- Water rates increased by 8.5%, but only 3.1 rate points were attributed to the rental payment
- Gennaro calculates a $310 million gap between what ratepayers are charged and the total rental payment
- He questions where this additional funding is coming from and whether it will be collected from ratepayers in the future
- Gennaro expresses concern about the lack of transparency in the pay-as-you-go budget system
James F. Gennaro
2:27:25
And I, you know, one thing I'm looking into now is that with the $440,000,000 at the administration took in the form of a rental payment in this budget year, FY 20 5 plus FY 24.
2:27:47
By by your own I I think you indicated that.
2:27:50
Yeah.
2:27:50
So so rates went up 8.5%.
2:27:53
You know, the chart that DEP put out when they break down the the the charges means that they for the rental payment in this fiscal year, they I think it was 3.1 rate points that they put, but 3 put at about $49,000,000 per rate point.
2:28:16
That's only, you know, that's only, like, a 100 maybe a 130,000,000 or whatever.
2:28:24
So The city has so the administration has taken a $440,000,000 rental payment.
2:28:35
Mhmm.
2:28:36
Charge the charge the rate payer is only 3.1%.
2:28:43
But if you wanted if you wanted if you have, like, a pay as you go system, that would have been 11 points on the rate right there just to pay the 440.
2:28:52
So the question remains, And this and this is your homework assignment Mhmm.
2:28:57
Because I can't get it Mhmm.
2:29:00
Is to where does the so if you so they take 440, they charge the ratepayers, what do I say?
2:29:08
1:30.
2:29:09
So that's like $310,000,000 that the administration is gonna spend this year of rental payment money that is not getting from the ratepayers.
2:29:18
So where is it coming from?
2:29:20
Is it in some reserve somewhere?
2:29:22
Or are they just gonna do this thing where okay.
2:29:27
We don't wanna shock the heck out of people.
2:29:30
Mhmm.
2:29:30
So rolling gonna do 3.3.1 points on the rate.
2:29:34
But we're gonna take the full 40,000,000, and we're gonna pay it off like over the next couple of years, which is not exactly a pay as you go kind of budget system, which is what we're supposed to have.
