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Concerned about yet another looming water rate hike, New York City Comptroller William C. Thompson, Jr. today submitted testimony to the New York City Council Finance Committee to detail his proposal to rebate excess rent back to the New York City Water Board.

“At time when all New Yorkers are feeling the pinch of rising food, energy and shelter costs, they will soon find out how much deeper they’ll be asked to dig into their pockets to pay for yet another essential need: water,” Thompson said in a written statement. “After experiencing an 11.5% rate increase last July, the City’s Water Board now proposes to raise rates by another 14.5 percent in the current year.”

You can view the full testimony at www.comptroller.nyc.gov.

One year ago, Thompson formally proposed that excess rent collected by the Water Board should be rebated back to the water system for the benefit of ratepayers.

“Our proposal was well-received by the Water Board, which has itself advocated for the rent rebate,” Thompson said. “Sadly, it has to date been rebuffed by the City. It is my feeling that it is critical to our water system’s financial health and credibility that the City stops using water revenues to subsidize the general fund.” 

Thompson noted that the water system’s expenses are dominated by the cost of servicing almost $20 billion in outstanding debt to maintain and upgrade the City’s vast network of water and sewer infrastructure.

Thompson recognized that this investment is mandatory because the water system must comply with state and federal standards for water purity. However, since 2005, water rental payments have exceeded the amount needed to pay down the City’s water-related debt. This “excess rent” will total $68 million in Fiscal Year 2008 and will grow to over $207 million by Fiscal Year 2012.

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