The average water consumption of a single-family residence in the city is 70,000 gallons annually.
The Department of Environmental Protection estimates that the annual cost of water and sewer bills comes to a little under $1,100. But that bill could go up by less than $100 a year if the planned 8.5% hike is approved.
What You Must Understand?
Water bills for owners of city properties may rise by 8.5% starting in July.
The typical home customer’s cost could rise by less than $100 per year.
Before the final vote, the New York City Water Board is holding public hearings on the proposed hike.
The primary cause of the increase, aside from typical inflation and other associated price increases, is what’s known as a “rental payment.”
The New York City Water Board is entitled to demand rent from Mayor Eric Adams and his administration in exchange for using the city’s water infrastructure.
The city rents the water and sewer systems to the Water Board. It establishes water rates and utilizes the money collected to pay for the DEP-managed systems.
The city has asked the Water Board to pay it almost $1.3 billion in rental payments between 2024 and 2028. To assist raise the necessary rent, DEP has suggested that the Water Board hike rates as early as July.
Last week’s budget hearings saw criticism of the plan for being a hidden tax.
City Councilmember Justin Brannan clarified, “The return of this payment will require the water system to divert funds from its own operations and debt service to pay the city for things completely unrelated to the delivery of clean water.”
The 8.5% increase that is possible would be the biggest in almost 15 years. The Adams administration is now restoring the Water Board’s rental payments to the city, which were halted under the de Blasio administration.
City property owners said it’s just one more mounting expense they had to cope with.
Anthony Scotto, a homeowner in Staten Island, remarked, “We’re just the working class that everyone takes our money from.”
Although most tenants are exempt from paying water bills, landlords warn that this expense may eventually be borne by their renters.
“The bills have already risen,” stated Orlando Pavich. “Unfortunately, we must increase the rent, but that’s life.”
Public hearings are being held by the Water Board prior to its vote on the proposed increases, which is scheduled for the end of next month.
Water delinquents who do not pay their water bills are partially to blame for the necessary rate rise, according to the city.
“New York City continues to keep water rates low, with New Yorkers paying less than the average American living in a large metro area for exceptional water quality and delivery,” a City Hall representative said in a statement.
