Requires New York city water board to wait at least thirty days after adoption of the city budget before setting its annual rates

Justification

The water board, set up by chapter 513 of the laws of 1984, sets its rates prior to the council's adoption of the budget. This results in the anomaly of the water board basing its rates on forecasts in April of each year and voting on rates in May before the councils hearings on the mayor's Proposed executive budget and the council's subsequent adoption of the budget in June of each year. As a result, the board tends to adopt, in effect - artificially high rates that would raise sufficient funds to cover the budget submitted by the city's department of Environmental Protection to operate and maintain the city's water and sewer systems. Often, this has resulted in significant water and sewer rate increases. All revenue raised by the water board must go towards the cost of operating the city's water and sewer systems. Any surplus that might accrue in any given year would either be applied to reduce rates or to fund additional water and sewer system needs.

If the water board were to set its rates after the council adopts the budget, it would set rates based on the need to cover the cost of the programs approved by the council in adopting the budget. The opportunity for actual, effective oversight creates greater incentives to economize, operate efficiently and expand water conservation efforts. It would allow the council, during its executive budget review, to review the proposed rate structure, to induce efficiencies to avert rate increases, or at least keep hikes as modest as practicable.

Empowering the city council to influence the rates set by the water board will create a greater incentive to economize and expand water conservation efforts. Also, the implementation of this measure should encourage more New Yorkers to express their concerns about the city's water and sewer programs. Water rates rose 148 percent between fiscal years 1986 and 1993, an average of 14 percent each year and roughly triple the rate of inflation. The typical bill for a single family home rose from $142 to $350 during that period. The cumulative increase through last year approaches 240 percent and the average bill exceeds $450. Interested people could lobby the city council and the mayor during the budget adoption process with the full knowledge that the water board's rates would more closely reflect the city council's budget actions.

This should also make it easier for more New Yorkers to follow water issues and press for conservation, filtration avoidance and watershed protection.

Prior legislative history

A.8496 of 2002, A.3791 of 2003, A.3452, S.2883 of 2005, A.4824 of 2007-2008 - Passed Assembly/Referred to Senate Corporations, Authorities & Commissions.

Fiscal implications

This legislation anticipates greater oversight by the municipality that could result in efficiencies in the operation and administration of the sewerage and water systems. Any savings would be passed on to ratepayers in the form of lower charges.

Effective date

This act shall take effect immediately.