Property owners are about to get a nasty New Year’s surprise from the city – a water rate hike of up to 18 percent.
Acting at the behest of Environmental Protection Commissioner Emily Lloyd, a gloomy Water Board voted unanimously yesterday to set the process in motion that would hike rates by 12 to 18 percent on Jan. 1, the middle of the fiscal year.
Water Board Chairman Jim Tripp indicated that property owners had better get ready to reach into their pockets again.
“We’re going to approve a rate increase on Dec. 21 based on what we now know,” he said.
The precise increase will be determined after required public hearings Dec. 13 and 14 in each borough.
The last rate increase of 11.5 percent took effect on July 1, less than five months ago.
“We’re asking you to take what I know is a difficult step,” Lloyd told the seven-member board.
Officials now estimate that even after cutbacks and other savings, water and sewer collections will come in $40 million to $120 million below the $2.08 billion needed to fund the system.
Lloyd offered a glimmer of hope that a massive hike could be averted through enactment of a long-stalled bill before the City Council allowing the Department of Environmental Protection to sell liens on the properties of deadbeats.
As of Oct. 31, DEP was owed $535.4 million.
“The [City Council] speaker has committed to the mayor to do everything in her power to get this legislation passed by the end of the year, and the administration has great confidence in her,” said Lloyd.
Council members, led by James Gennaro (D-Queens) and David Weprin (D-Queens), have demanded that DEP clean up its billing system before they approve the lien sales.