According to a draft released by the New York City Water Board on May 3rd, the New York City Department of Environmental Protection (DEP) has proposed an 8.5% increase in water rates starting from July 1. The Water Board held five public hearings between May 28 and June 4, and will vote on whether to approve the rate hike on June 13.
If the Water Board approves the largest increase in 14 years, the new water rate will take effect on July 1, which marks the beginning of the new fiscal year for the city. Based on data from the DEP, the average annual water bill for a residential household in New York City will increase by $93.
As reported by the New York Post and The City, the city government plans to collect over $1.4 billion in rental payments from the Water Board between the fiscal years 2024 and 2028, which is one of the main reasons for the proposed water rate hike.
The system of the Water Board paying rent to the city government began in 1985 when then-Mayor Ed Koch established the semi-autonomous city agency “New York City Water Board” due to the city’s deteriorating finances. The lease agreement allowed the Water Board to operate the city’s water and wastewater systems, pay rent to the city government, and set water rates to support the city’s financial stability and public services.
Former Mayor Bill de Blasio suspended collecting rent from the Water Board in the fiscal years 2017 and 2018, claiming he would end the practice. However, the current administration under Mayor Adams considers not collecting rent as a form of subsidy.
Jacques Jiha, the Director of the Mayor’s Office of Management and Budget, informed the City Council that due to the city’s tight and unstable finances, the rent cannot be canceled as the city needs the funds for essential projects.
Regarding the rising costs of living, Flushing resident Mrs. Wu expressed in an interview with NTD Television, “People still hope for things to be cheap, but now everything is expensive, really expensive. Why is everything so costly now?” Another Flushing resident, Mrs. Chen, mentioned, “It does have a slight impact because everything is getting more expensive.” Additionally, Mr. Li, a Chinese immigrant in the U.S., shared with NTD, “I don’t think it will have a big impact, maybe for the elderly or those with low incomes, it will have a slight effect.”
The Water Board will hold public hearings on May 29 at 6 pm, May 30 at 2 pm and 6 pm, and on June 4 at 6 pm. For detailed locations, please refer to the link: https://www.nyc.gov/site/nycwaterboard/meetings/fy25-rate-public-hearings-notice.page
Residents who wish to speak at the public hearings must register by 4 pm on the day before the hearing by emailing [email protected], calling 718-595-3591, or sending mail to the New York City Water Board (59-17 Junction Boulevard, 8th Floor, Flushing, NY 11373). If unable to attend the hearings, opinions can be mailed to the above address or emailed for consideration by the Water Board by 5 pm on June 7.