Gennaro Offers Plan To Cut Water Rate Hike From 14.5 To 2.75%

Councilman James Gennaro unveiled a plan to reduce the proposed water rate hike by over 80 percent at City Hall on May 12. He was joined by some of the supporters of this plan, including Councilman David Weprin, Glen Oaks Village Co-op President Bob Friedrich and Local Initiatives Support Corporation Research and Policy Analyst Sarah Hovde.

City Councilmember James F. Gennaro unveiled a plan yesterday to reduce the Water Board's proposed 14.5 percent water rate increase to only 2.75 percent.

Joined by Councilmembers David Weprin and Peter Vallone Jr., he called upon Mayor Michael Bloomberg to adopt his plan immediately before the Water Board votes on its proposal on Friday.

Gennaro (D- Fresh Meadows), who has been campaigning against Water Board increases since last year, explained his plan is based on "the basic principle that Water Board revenues should not be used to bolster the city's general fund".

He said that the principle is supported by a large coalition of councilmembers and advocacy groups, many of which have testified before his Environmental Protection Committee in hearings on water rate increases.

Gennaro said the mayor could stop the practice of diverting Water Board revenues to the general fund "right now if he wanted to. It isn't written in stone," he said.

To illustrate the effect of the practice of diverting water revenues to the general fund, Gennaro said that the new rate proposal presented last month would send $122 million collected from water bills to the city's general coffers.

Gennaro said if his plan was adopted and the proposed diversion of the $122 million was stopped, the proposed 14.5 percent hike being sought would be reduced by 9 points. Eliminating $55 million in agency reimbursements would further reduce the 14.5 percent hike by another 2.75 percent, bringing the proposed increase down to 2.75 percent.

Weprin, who as chair of the Finance Committee has also opposed the diversion of water tax revenues, stated, "With so much money going toward a purpose that is not benefitting the water system, I find it hypocritical that the Water Board has the gall to ask its taxpayers to pay more. The Water Board and DEP are taking our taxpayers' money and spending it in areas unrelated to the water system."

Vallone stated, "This is a stealth tax increase. If the administration wants to raise taxes, it should do it in the light of day, not through backwater deals."