REMARKS
Impact of rental payments on water rates and DEP's ability to fund projects
3:03:54
·
3 min
Council Member Gennaro explains how the rental payment system affects water rates and the Department of Environmental Protection's ability to fund necessary projects. He highlights the financial burden this system places on both the DEP and NYC residents.
- The rental payment significantly increases water rates, with this year's $440 million payment accounting for 11 points on the rate
- Next year's projected $307 million payment could add almost 10 points to the water rate
- The rental payment takes away resources from important environmental justice projects and infrastructure improvements
- DEP faces challenges in raising funds for necessary projects due to the burden of the rental payment
James F. Gennaro
3:03:54
And as someone who wants to see the DEP be able to make the investments, it needs to make for precisely doing what needs to be done under 1067, you know, the rental payment is totally anathema, and It it it just it just gets in the way of what the EP has to do in this age of building, you know, possibly building a filtration plant, making things right with the people of Southeast Queens.
3:04:20
If And and if we, this year Mhmm.
3:04:23
You know, we did a a page you go system just a $440,000,000 in in rental payment would have been 11 points on the rate just for the rental payment.
3:04:33
Mhmm.
3:04:33
So this is going through and so even though this is bad, you know, next year, it's gonna be worse because if demand does 307,000,000, divide 307,000,000 by 40,000,000 per rate point, and you got almost 10 points on the rate just to cover the rental payment.
3:04:49
Mhmm.
3:04:50
And so this is And you're right.
3:04:52
I mean, if I you control the budget process and and and the council Mhmm.
3:04:56
I mean, I I I I tried to make that case this budget year.
3:04:59
Like, the 4 forties gotta go because it's, like, stolen money.
3:05:03
And then, you know, everyone, the council's just gonna look into me, you'll be kidding me.
3:05:08
You know, this is a huge number.
3:05:10
Mhmm.
3:05:11
And the only way to really solve this is and and there's a bill in the state assembly or state, you know, in in the state legislature, saying that the city council has to, like, be partners with the mayor on figuring out how big the rental payment has to be or something, right, in that bill.
3:05:29
Mhmm.
3:05:30
Yeah.
3:05:30
And and and and, you know, I don't want the mayors to be I don't I don't want the counsel to be partnered with the mayor on the on the rental payment.
3:05:40
I want the rental payment go away.
3:05:42
I, like, I don't want us to acquire rental payment like power and and work with them on it.
3:05:48
Like, it's gotta go every penny.
3:05:51
And so and, you know, I'm gonna be sort of doing what I can do, you know, both from, like, a like a fiscal perspective of how this takes resources away from and and also from the environmental justice perspective Mhmm.
3:06:07
Because the reason why we can't get certain EJ stuff done is that DEP just doesn't have enough money.
3:06:12
And it's only so it's only so high one can raise interest rates.
3:06:16
So if we're starting out every budget year with a 10% water rate increase just to cover the rental payment, and then we gotta do everything else on top of that to build out the storm system from the the storm sewer system from 1.75 inches per capacity per hour to 2.1 wherever they wanna take it.
3:06:38
That's like untold 1,000,000,000 of dollars.
3:06:41
And that so I appreciate your perspective.
3:06:43
Eric of having the council and kind of, you know, flex its budget muscles.
3:06:51
But, I mean, I I I I tried that this year, and my glasses are, like, I have to get them fixed Mhmm.
3:06:58
That they'll stay on.
