REMARKS
Explanation of the water rental payment system and its history
2:26:03
·
81 sec
Council Member Gennaro provides a detailed explanation of the water rental payment system and its historical development in New York City. He outlines how the payment structure has changed over time, particularly during the Bloomberg administration.
- The maximum rental payment is set at 50% of the annual debt service paid by the Water Finance Authority
- Initially, the rental payment was tied to pre-1985 general obligation debt for DEP or 15% of Water Finance Authority debt, whichever was higher
- As pre-1985 debt was paid down, the system shifted to a percentage of Water Finance Authority debt service
- Currently, 100% of the rental payment goes into the city's general fund
James F. Gennaro
2:26:03
And What's not in your testimony is that, you know, the maximum rental payment that the American asked for is 50% of the annual debt service paid by the Water Finance Authority.
2:26:22
Mhmm.
2:26:22
And so early in the Bloomberg minute because up until then, it was the rental payment was equal to the the debt service on the pre 1985 general obligation debt for 4 for DEP, that pile of debt, or 15% of the Water Finance Authority debt, whichever was higher.
2:26:50
At a certain point, the 15 as as the pre 1985 debt got paid down, the debt service went down, and the 15% of the Water Finance Authority debt service went up.
2:27:01
The lines crossed, and then the administration once the debt was paid off, I was just was flipped over to the 30% of the Water Finance Authority, and then they would get the rental payment, pay off the pre 1985 debt, and put the rest into the general fund, and now they're putting a 100% of it, you know, into the general fund.
