Res. No. 1008
Resolution calling upon the New York State Senate to pass, and the Governor to sign, A.4824/S.2513, which would require the New York City Water Board to wait at least thirty days after adoption of the City budget before setting its annual fees, rates, rents or other charges for the use of the sewage system or water system.
By Council Members Weprin, Gennaro, Koppell, Fidler, Foster, Gentile, Gerson, Gonzalez, James, Liu, Mealy, Nelson, Recchia Jr., Stewart, Vann, White Jr., Reyna and Dilan
Whereas, Currently, under section 1045-j of the Public Authorities Law, the New York City Water Board (“NYCWB”) is given great discretion as to when it will set the water and sewer rates; and
Whereas, Generally, the NYCWB sets its rates prior to the City Council's adoption of the City budget; and
Whereas, Therefore, the NYCWB sets its rates based on predictions and forecasts of the operational and maintenance costs of the water and sewer system submitted by the Department of Environmental Protection (“DEP”), which is responsible for the upkeep of the water system and sewer system; and
Whereas, Consequently, the NYCWB tends to adopt higher rates than what would otherwise be necessary to cover the budget submitted by DEP to operate and maintain the water and sewer system; and
Whereas, Water and sewer rates rose 148 percent between fiscal years 1986 and 1993, an average of 14 percent each year and roughly triple the rate of inflation; and
Whereas, More recently, on May 14, 2007, the NYCWB raised the water and sewer rate by 11.5%, with another 11.5% rate hike expected in 2008; and
Whereas, According to Steve Lawitts, the NYCWB’s executive director, the rate increases are necessary because of the increasing operational costs to run the system; and
Whereas, Requiring the Water Board to set its rates after the City Council adopts the
City budget would allow the City Council during its executive budget review, to review the proposed rate structure, and allow the Board to set rates based on actual need rather than a forecast; and
Whereas, On May 2, 2007, the New York State Senate and Assembly passed A.4824/S.2513, which requires the NYCWB to wait at least thirty days after adoption of the City budget before setting its annual fees, rates, rents or other charges for the use of the sewage system or water system; now, therefore be it
Resolved, That the Council of the City of New York calls upon the New York State Senate
to pass, and the Governor to sign A.4824/S.2513, which would require the New York City Water Board to wait at least thirty days after adoption of the City budget before setting its annual fees, rates, rents or other charges for the use of the sewage system or water system.
TT 6-21-07
LS #3207