How a ‘Hidden’ $1.4 Billion Tax Will Make N.Y.C. Water Bills Rise

Key Facts

• The city plans to charge its own Water Board more than $1.4 billion in rent over four years to lease its water and sewer systems from the city, according to budget documents reviewed by Rahul Jain, a New York State deputy comptroller.
• The city’s Department of Environmental Protection, in turn, is now proposing that the Water Board raise its rates for homeowners and landlords by 8.5 percent in July, according to a proposal released Friday by the board.
• The proposed rate increase — which, if approved, would be double last year’s rate hike and the highest in 14 years — would only pay for a portion of the rent charges.
• The funding gimmick had been used by New York City for decades, but was discarded in 2017 (only to make a temporary, partial reappearance during Covid before it disappeared again).

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