Emily Myers in Bricks & Bucks
New Yorkers get to weigh in on a 3.7% increase in water rates (Photo courtesy Shutterstock)
Another water rate hike is likely just around the corner. A series of public hearings are scheduled between May 27 and June 3 in each borough to consider a proposed 3.7% increase in water rates. The relatively good news is that the proposed increase, which would go into effect July 1, is in fact the lowest in four years. In the past decade, the largest increase of 8.5% was last year (however, rate increases were frozen in 2017, 2018 and 2021).
These figures from the New York City Department of Environmental Protection (DEP) are based on an average consumption of 52,000 gallons of water per year. For the typical co-op or condo with metered billing, the rate increase will work out as a price hike from the current annual costs of $877 to $909 per year. If approved by the New York City Water Board later this month, the $303 million generated by the water rate increases will be added to billions of dollars allocated to infrastructure improvements to the city’s water and sewer systems. This includes $1.6 billion for sewer overflow retention tanks for the Gowanus Canal and the build-out of a $2.6 billion drainage system for Southeast Queens.
Co-op and condo boards will need to incorporate the rate increase into the annual budget process. Keith Werny, president of FirstService Residential New York’s CityLine Division, which manages condos and co-ops primarily in the outer boroughs, says that although the increase is “reasonable,” it still makes sense to survey a building's sinks and toilets to eliminate leaks. “A washer costs nothing, but if your water is constantly running, you’re losing a lot of money,” he points out.
Likewise, if your building has a boiler or cooling tower, another clue the building is wasting water is the amount of chemicals being used for water treatment, Werny says. Building management systems, which typically include a range of sensors and controls, add another layer of scrutiny. Alerted to excessive water running to the boiler at the FirstService Residential managed Lincoln Square Condominium, Werny says faulty steam traps were identified at the 60-story Manhattan building. Steam traps hold steam in the radiator until the heat is released, and before they were replaced 2,000 to 4,000 gallons of water were being lost per day.
Boards can also take advantage of companies that audit utility bills to identify errors and overcharges. Herschel Weiss, principal at the water management firm Ashokan, says boards should be aware of attributed consumption charges, which can be imposed for repeatedly ignoring DEP notifications seeking access to replace or upgrade equipment. “The rate for residential buildings is about three or four times your regular water bill,” Weiss says. His advice: “Do not play games with the DEP. Open the door.”
DEP does not provide data on revenue generated by attributed consumption charges and says the proposed below-average 3.7% rate increase is partly due to the reinstatement of lien sales for outstanding water and sewer debt, which were frozen during the pandemic. Liens can lead to foreclosure if the debt isn't resolved. In addition, DEP has entered into payment agreements with 25% of customers with outstanding debt, generating almost $200 million since December 2022. “When everyone pays their fair share, we are able to keep water and sewer service costs for New Yorkers well below the national average,” says DEP Commissioner Rohit T. Aggarwala.
Also under consideration as part of the rate increase is a plan to maintain wastewater charges at 159% of water charges. So for a building paying $10,000 for water, their current combined water and sewage cost would be $25,900. With a new 3.7% rate increase for water, the combined water and wastewater costs would rise around $958 to $26,858 annually. Buildings struggling to meet their obligations can access DEP help through customer affordability programs. “You need to be proactive to speak with them,” says Mitch Unger, chief financial officer at management firm John B Lovett & Associates. “Boards should also ensure that the meters are correct,” he adds.
The in-person public hearings will take place at 6pm on May 27 at Bernikow JCC in Staten Island, May 28 at Saint Francis College in Brooklyn, May 29 at JFK Jr. School in Queens, June 2 at Mercy University in the Bronx and at 2pm at Manhattan's NYC Office of Management and Budget on June 3. The new rate is scheduled to become effective next month following testimony and comments.