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The Water Board is set to vote on a 14.5 percent rate hike Friday, but Councilman James Gennaro (D-Fresh Meadows), Chair of the Environmental Protection Committee, has another plan.

The councilman unveiled Monday the “Genarro Plan to Reduce Water Rates,” which would bring the proposed 14.5 percent increase down to 2.75 percent.

The Board has consistently attributed the rate increase to rising fuel and energy costs as well as the need to fund capital projects, but Gennaro has had his doubts.

“Skyrocketing water rates are a regressive, backdoor tax used to bolster the City’s general coffers,” Gennaro said. “The Bloomberg Administration should get its hands out of the pockets of water bill-paying New Yorkers and commit to using the revenues collected from water bills for water and sewer projects only. This is what has to be done to avoid outrageous water rate increases every year.”

A recent report by the NYC Independent Budget Office confirmed the diversion of revenues and also found that $55 million in water bill payments has gone toward other City agencies. The Department of Sanitation has picked up $30 million for street sweeping and the Fire Department has enjoyed $7.4 million for hydrant inspections.

Gennaro and his colleague Councilman John Liu (D-Flushing) held a town hall meeting at PS 21 Monday evening in order to introduce the “Gennaro Plan” and field constituents’ concerns.

One town hall meeting attendant, Flushing resident Michael DeCesare, called the diversion of funds, a “beginning sign of corruption.”

Councilman David Weprin (D-Hollis) who, as Chair of the Finance Committee recently came under fire for allowing the Council to fund nonexistent groups, has also expressed concern.

“The Water Board and DEP are taking our taxpayers’ money and spending it in areas unrelated to the Water System,” Weprin said. “This is ridiculous – almost criminal. Our taxpayers are being robbed.”

According to Gennaro, the regressive nature of the tax places an unfair burden on less affluent New Yorkers, who tend to spend more time at home and use more water than their wealthier counterparts who eat out and travel more regularly.

The Board is still slated to vote on May 16, but it is not required to vote on the originally proposed 14.5 percent rate hike. According to Gennaro Spokesman Shams Tarek, several members of the Board are siding with Gennaro.
“The worst part is that this practice isn’t written in stone,” Gennaro said. “Mayor Bloomberg can stop it right now if he wanted to.”

If approved, the 14.5 percent rate hike would mark the first time since the early 1990s that a double-digit rate hike has been imposed two years in a row. An 11.5 percent hike was issued last July.

“Bloomberg is counting on people not understanding the issue,” Tarek said.

If you wish to support the Gennaro Plan to Reduce Water Rates, call the Mayor’s office at (212) 788-3000 or visit www.nyc.gov.