Read without ads and support Scribd by becoming a Scribd Premium Reader.
See Premium Plans
 
Public InformationRegarding Water andWastewater Rates
April 2010
 
inside front cover 
 
Introductory Statement
The New York City Water Board (“the Board”) has prepared this informationbooklet to inform the pubic on its rate proposals for Fiscal Year 2011 (“FY 2011”)and provide them with information on the financial condition of the water andwastewater system (the “System”), as well as its budget for the upcoming year.New York City’s water and wastewater systems are among the largest in theworld. The water supply system delivers more than 1 billion gallons of highquality water every day to eight million people in New York City and approximate-ly 1 million residents in four counties north of the City. The City’s fourteenWastewater Treatment Plants (WWTPs) treat roughly 1.3 billion gallons of wastewater daily. New York City’s water and sewer infrastructure plays a criticalrole in guaranteeing public health and the economic vitality of New York City. By2030, New York City’s population is expected to have grown by more than amillion residents. To accommodate this growth, uphold the high quality andintegrity of the City’s drinking water, and ensure the long term viability of thewater and sewer system, the Bloomberg Administration has made a commitmentto New York City’s water infrastructure in PlaNYC, released in April 2007.NYC water rates are set to cover the system’s operating and capital expenseseach year, which include the cost of treatment, transmission and distribution, andstate of good repair. Most New York City properties are charged a uniform water rate. Wastewater charges are levied at 159% of water charges. Approximately6% of all properties (mostly multi-family residential) are billed on the basis of aseries of fixed flat-rate “frontage” charges determined by the width of the proper-ty’s street frontage; the number of families; building fixtures and other measures.In the coming fiscal year, the largest driver of the system’s annual budget is itsnet debt service, accounting for 42% of the total revenue needed in FY 2011.Expenses spent on operations and maintenance for this vast system will be 41%of its budget. Debt service is a direct result of DEP’s massive capital constructionprojects. These capital construction projects—such as the Croton Water FiltrationPlant, the Catskill and Delaware Ultraviolet (UV) Disinfection Plant, NewtownCreek Wastewater Treatment Plant and City Water Tunnel 3—will all havesignificant citywide impacts on New York’s water and wastewater systems.The ratio of mandated to non-mandated capital projects will drop from 2011onward. However, DEP will have to pay down those initial investments over thenext thirty years. Constructing these massive projects simultaneously is costly;for fiscal years 2003 through 2010, 69% of DEP’s capital budget was directed for mandated projects. Due to the decreased amount of State and Federal funding,the NYC Municipal Water Finance Authority (WFA) has had to take on increasingamounts of debt to finance these projects. From July 2006 to April 9, 2010, theNew York City Water Finance Authority issued $8.4 billion in debt. The resultingdebt service has become the single largest driver of water and wastewater rateincreases: both DEP’s capital outlays and the water rate have increased since2007, with both capital outlays and water rate percentage increases peaking in2009. Currently, the WFA’s total outstanding debt is $23.7 billion. DEP’s currentdaily capital expenditure rate is approximately $9 million per day on construction,design and construction management.3
Search
Search History:
Searching...
Result 00 of 00
00 results for result for
  • p.
    • Notes
    Load more