REMARKS
Discussion of Water Board rental payments and their impact on water rates
0:09:47
·
3 min
Council Member Gennaro addresses the issue of 'rental payments' that the administration has requested from the New York City Water Board. He criticizes this practice as a misuse of water rate proceeds.
- The administration has requested $1.4 billion in rental payments over four years
- These payments are contributing to an 8.5% increase in water rates for 2025
- Gennaro describes the rental payments as a 'scam' that diverts money from water and sewer services to the city's general fund
- The Water Board has passed a resolution condemning the rental payment
- Gennaro is working with state legislators to eliminate the rental payment practice
James F. Gennaro
0:09:47
As an aside, I'll turn briefly to the issue of the so called rental payments so called rental payment that the administration has requested of the New York City Water Board to the tune of $1,400,000,000 over the course of 4 years, 145,000,000 in FY24.
0:10:07
$289,000,000 in FY 'twenty 5, which combines the $440,000,000, which we just did in the last budget.
0:10:15
This comes from water rate proceeds with additional rental payments announced by the administration every fiscal year through 2028.
0:10:26
The rental payments really have nothing to do with DEP.
0:10:29
They're not the bad guys here, but there is a bill on the DACA today that evolves the rental payment.
0:10:34
So I thought I'd give you a little background on the rental payment.
0:10:38
Oh, continuing in that.
0:10:40
Let's see.
0:10:40
Earlier this year, the Water Board announced that it would increase water rates by 8.5% in 2025.
0:10:47
And no small part to cover the rental payments at the Adams Administration is charging the water board to lease the city's portable water and wastewater infrastructure.
0:10:56
To be clear, this is the city charging the city for the use of city property and the proceeds of this scam.
0:11:03
Oh, did I say scam?
0:11:05
Oh my god.
0:11:06
And the proceeds of this scam goes to the city's general fund to fill budget gaps that have nothing to do with water and sewer, you know, any kind of service delivery in that realm.
0:11:18
New York City Water rates is supposed to be collected for the purposes of funding the entirety of the Water And Sewer Systems operating and capital needs by charging the water board for the rental payments.
0:11:28
Mayor Adams is diverting money from these purposes to the City General Fund leaving fewer resources available for much needed infrastructure improvements and significantly increasing the financial burdens on ratepayers increasing the financial burden on ratepayers at the same time.
0:11:45
Recently, the water board unanimously passed the resolution condemning the rental payment.
0:11:50
However, the rental payment is legal.
0:11:53
The mayor is allowed to ask for it.
0:11:56
The rental payment once upon a time.
0:11:59
Had a legitimate purpose.
0:12:01
That purpose is now passed and paying off some old debt.
0:12:04
It's a whole big long story.
0:12:06
The debt that the rental payment was born was was born to kind of payoff.
0:12:14
Is now all paid off.
0:12:15
Now it's just funneling money to the city's general fund.
0:12:20
And I have my personal kind of, like, side project where I'm working with the legislators is to try to, you know, put the water, to put the rental payment out of business.
0:12:31
Primarily, the city doesn't have the authority to do that.
0:12:35
The water board and the water finance authority were created by the states.
0:12:38
The only the state can shut that down.
0:12:41
And so that's sort of kind of working with my partners in the state government to try to get that done.
