New York’s water systems may require nearly $40 billion in repairs and improvements over the next two decades.
That’s according to a report that New York State Comptroller Thomas DiNapoli issued Monday.
DiNapoli’s office cited Syracuse, Hoosick Falls, and Newburgh as locations with “recent high profile water-system failures and problems,” referring to them as the “latest signs of the need” to spend more on water-delivery systems.
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The City of Syracuse had 372 water main breaks in 2015 and another 114 through September 2016, according to the DiNapoli report.
In New York state, it “generally” falls to cities, villages, towns and “a few counties” to operate and fund the systems that supply residents and businesses with water.
Fees and property taxes “primarily” pay the cost, DiNapoli’s office said. Water authorities and private water companies also provide these services in several communities.
The state and federal government regulate public-water systems, but also provide some funding for improvements.
“Many drinking water systems in New York are over 100 years old and operating far beyond their useful life,” DiNapoli said in a news release about the report. “Too many places are dealing with water-main breaks, leaks, contaminated drinking water and other problems that can result in public-health threats, property damage, or inconvenience for residents and businesses. New York needs to significantly invest in this area, or we’re going to suffer the consequences. Unfortunately, paying for these solutions presents a considerable challenge.”
The current state-budget proposal calls for $2 billion in spending on water-quality improvements. However, the estimated price tag from the U.S. Environmental Protection Agency “to just maintain” the existing infrastructure is $22 billion through the year 2030.
The New York State Department of Health, meanwhile, puts the estimate “much higher” and concluded the state will need as much as $39 billion in capital financing for drinking-water projects.
The report recommended that local officials prepare for the challenges ahead by developing and maintaining multiyear financial and capital plans; establishing legal capital reserve funds when appropriate; and keeping taxpayers informed about system needs and options for paying for them — including federal and state resources.
Setting and managing water-user rates to meet system expenses is also “central to the financial stability” of water services, DiNapoli’s office said.
More on report
DiNapoli’s report highlighted several areas that need attention and resources, including contamination of water systems that can cause public-health emergencies and “can come with a large price tag.”
Water contamination can originate from industrial sites as well as from inadequate treatment; improper separation of sewage; and agricultural and storm-water runoff.
Aging pipes and other structural problems can cause corrosion of materials that can release lead into drinking water, DiNapoli’s office said.
DiNapoli’s office has conducted audits that have identified municipal-water systems that had “excessive” water loss, in some cases exceeding 50 percent.
The water loss is “likely” coming from undetected deterioration, breaks, or other malfunctions in the water-distribution system.
The state comptroller’s report also noted financial information for local water systems. The report found that in 2015, 939 local governments reported collecting a total of $1.1 billion in water-fund revenue. Most of this revenue was spent on the day-to-day operation of the water systems, including routine maintenance.
It also found New York’s 27 local water authorities reported $4.6 billion in revenues, with New York City’s water system accounting for $4 billion of those revenues.
Contact Reinhardt at ereinhardt@cnybj.com
PHOTO: New York State Comptroller Thomas DiNapoli (Eric Reinhardt / BJNN file photo)
