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Q&A
Water rental payments and rate increases
0:42:31
ยท
4 min
Council Member Restler expresses strong disapproval of the reinstatement of water rental payments by Mayor Adams and questions DEP officials about the impact on water rates and homeowners.
- Mayor Adams reinstated rental payments of $289 million in FY25 and $1.4 billion through 2029.
- The funds go to the city's general fund and do not support water-related or resiliency purposes.
- Last year's 8.5% rate increase included 3.1% attributed to the rental payment.
- Council Member Restler criticizes the payments as a 'backdoor tax' on homeowners.
- DEP confirms that the rental payment funds are not directly supporting resilience efforts.
Lincoln Restler
0:42:31
I just wanna shift gears to the water rental payments that the mayor decided to impose last year.
0:42:38
Just for a moment of background, under the 1985 lease agreement between the city and the water board, the city may request a rental payment from the water board.
0:42:46
In 2016, mayor de Blasio paused rental payments, noting that they were and they were not reinstated except for partial payments during the pandemic.
0:42:55
Last year however, mayor Adams brought back the rental payments, $289,000,000 in f y twenty five and a planned $1,400,000,000 through 2029 purportedly to cover asylum costs.
0:43:07
Although I don't think we've seen an adjustment in those numbers since asylum costs have gone down.
0:43:12
These funds are directed to the city's general fund and do not support any water related purpose, any resiliency purpose.
0:43:21
Like Chair Gennaro, this really pisses me off just to say it plainly.
0:43:24
How much will the water rate payments for tax payers increase to cover the rental payment?
0:43:31
You estimate for next year?
Rohit Aggarwala
0:43:35
Last year's number.
0:43:36
Can you do last year's number?
0:43:38
So chairman, we are we are currently working, we will over the next couple of weeks actually be working our our annual process to set next year's water rates.
0:43:48
Usually starts in late March, early April.
0:43:52
Right.
0:43:53
So I do not at the moment know what our proposal to the water board will be.
0:43:58
What was projected in the last bond issuance where we do lay out a four year projection is the same 8.5% number that we did last year but that is a, you know, that is always adjusted and you know I'm pleased to report for example we are ahead of revenue plan at the moment which gives us a little bit of cushion by $200,000,000 today and that's a good thing.
0:44:24
And but what I can tell you is is the breakdown of last year's 8.5% rate because we did break down for the water board where it went.
0:44:33
And I'll ask Chief Financial Officer, Nerissa Moray, to take that.
Nerissa Moray
0:44:37
Yes.
0:44:38
In terms of the composition of the last year's 8.5 increase, 3.1% was attributed to debt service, so obviously the financing and funding that goes towards our capital plan, the delivery of that capital plan.
0:44:52
3.1% was attributed to the rental payment requests from the city.
0:44:56
1% was driven by o and m inflationary costs or new program needs that were
Lincoln Restler
0:45:02
Can I just dig in with you on that 3.1% that was attributed to the city's rental payment?
0:45:07
Do you have a breakdown of the average cost per per homeowner of what that meant?
0:45:13
My notes have it here as a dollar 30 per month.
0:45:15
Does that sound right to you?
0:45:17
Does that a number that means anything?
Nerissa Moray
0:45:18
I'm sorry.
0:45:19
I'd I'd have to check that and get back, but I
Anastasios Georgelis
0:45:20
can go
Lincoln Restler
0:45:20
ahead check that.
0:45:22
Has OMB provided any explanation for why they are reinstating this additional tax on New York homeowners?
Rohit Aggarwala
0:45:31
Council member, it is it is the city represented by the mayor and usually delivered by OMB that makes that decision, and it's in the lease.
0:45:39
So DEP has no role in that decision.
Lincoln Restler
0:45:41
I just wondered if you had any explanation beyond the purported costs of asylums of of covering asylum seekers.
0:45:47
You know, I just if we were talking about an additional assessment that was expanding DEP's resiliency efforts to protect us all from the existential threat of climate change, that would be a conversation that I think myself and and many members of this committee and this council would be willing to have.
0:46:08
But a tax on homeowners to send resources to the general fund to the tune of $1,400,000,000 over the next five years with no additional support provided to DEP as a result of this backdoor tax on New York City homeowners at a time when the affordability crisis is worse than ever, right, doesn't make any sense to me.
0:46:27
I mean, a quarter of kids in New York City are living in poverty, and we're adding these taxes that are just inequitable for no good reason and without a clear explanation.
0:46:37
So I realize this is not your decision, but you're the person I get to yell at about it.
0:46:42
And so I think that I've made my point clear.
0:46:46
I just can you just can I I'll I'll ask the question rather than just assert it?
0:46:54
Given the pressing needs for climate resilience, are any of these additional funds that are being generated on the backs of of New York homeowners, you know, through this backdoor tax, going to expand resiliency efforts at the agency?
Rohit Aggarwala
0:47:07
Well, no, not directly.
Lincoln Restler
0:47:11
Yeah.
0:47:14
Okay.
0:47:14
I will I could just keep complaining about this, but that's probably I've made my point.
0:47:18
Why don't I pass it over to colleagues, then I'll keep asking more questions.
0:47:22
Councilmember Marmarano?