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New York State Comptrol ler

THOMAS P. DiNAPOLI

COMPTROLLEROffice of the NEW YORK STATE

FEBRUARY 2017

Drinking Water Systems in New York The Challenges of Aging Infrastructure

•939localgovernmentshavewaterdepartmentsordistricts,withatotalrevenueof$1.1 billion(notincludingNewYorkCity).

•Majormunicipalwaterrevenues:•79%waterfees•15%propertytaxes

•Majormunicipalwaterexpenditures:•49%contractual•33%personalservicesandbenefits•15%debtservice

•27publicwaterauthorities,withrevenuesof$4.6 billion(includingNewYorkCity).

•Typicalmonthlywatercostsforconsumersrangefrom$20toover$100.

•Estimated20-yearcostofneededwaterinvestments:•$22 billion(EPA)•$39 billion(DOH)

New York’s Local Water Systems by the Numbers

1Industrial Development Agencies Drinking Water Systems in New York The Challenges of Aging Infrastructure

Introduction

NewYorkStatehaslongbenefittedfromabundantandreliablewaterresources.Residentsexpectsafeandaffordablewaterforbasicdailyneeds,andindustrial,institutionalandcommercialusersdependontheavailabilityofwaterresourcestoproducetheirgoodsanddeliverservices.Localgovernments,waterauthoritiesandprivatewatercompaniesservetheimportantfunctionofdeliveringwaterthroughanextensivebutaginginfrastructure.TheworkofupgradingNewYork’swaterinfrastructuremeritssustainedattention.

Localgovernmentofficialsandthecommunitiestheyserveareincreasinglyconcernedabouttheshortandlong-termoutlookfortheirwatersystems.Asnewexamplesofthevulnerabilitiesofwatersystems,fromcontaminationtowatermainbreaks,continuetoemergeinNewYorkStateaswellasotherareasofthecountry,thepublicandprivatesectorswillexpectgovernmenttooffersolutions.Payingforthesesolutionswillpresentaconsiderablechallenge.

Thefollowingreportoffersanoverviewofthedifferentwaysinwhichpublicwatersuppliesareprovided,regulatedandfundedinNewYorkState.Italsofocusesonsomeofthespecificconcernsfacinglocalgovernmentsincludingtheirownfundingtrends,capitalplanningpracticesandtheemergingriskareasofcontaminationandsecurity.

2 Drinking Water Systems in New York The Challenges of Aging Infrastructure

WaterSystems

Thefundamentalelementsofwatersystemsaretheirownership,infrastructureandthegovernmentalframeworkwithinwhichtheyoperate.Insparselypopulatedareas,theremaybenowatersystematall,otherthanprivatelymaintainedwellsorsurface-watersources.However,inmosturbanandsuburbanareasoftheState,waterisprovidedbyalocalgovernmentwaterdepartmentordistrict,apublicwaterauthorityoraprivatecompany.Thefollowingdiscussionfocusesonwatersystemsoperatedbylocalgovernmentsandpublicauthorities.

Physical Infrastructure

Publicwatersystemsvarygreatlyinsizeandcomplexity.Thesmallestsystems–forexample,thosethatsupplyasinglebusinessorneighborhood–mayusegroundwaterdrawnfromawellornearbysurfacewatersource(typicallyalake,reservoirorriver).Largersystems–likethosethatservesuburbantowns–mayalsodrawfromlocalsourcesoraregionalsupplier,andoftendependoncomplexstorageanddistributionnetworks.Cities,withtheirhistoricallydensedevelopment,generallyimporttheirwaterfromoutsidetheirmunicipalboundaries(oftenfromcity-ownedsources),bothtoensureadequatecapacityandtopreventcontamination.NewYorkCity’swatersystemisbyfarthelargestintheState,drawingwaterfromCityownedreservoirsasfarawayastheCatskillMountains,conveyedthroughhundredsofmilesoftunnelsandaqueducts.1


WaterDistributionSystems

1.Wateroriginatesfromasourceorsources,generallyfromacollectionpointsuchasariver,lake,reservoirorawelltappingintoanaquifer.

2.Atreatmentplantpurifiesthewaterthroughfiltrationand/ordisinfection,andprovidescorrosioncontrolifrequired.

3.Next,thewaterisoftenpumpedtoanelevatedstoragetankorpressuretank.

4.Finally,watermainsandotherdistributionpipesusegravityorpumpstoconveywatertousers.

5.Mostlargecommunitypublicwatersystemsandmanysmallsystemsincludemeterstomeasurewaterusageforbillingandconservationpurposes.

Typical Water Supply Distribution System

Source:USEnvironmentalProtectionAgency

Figure 1

Note: Pumpsandvalvesarelocatedatavarietyoflocationsthroughoutthedistributionsystem

Storage Tank

Treatment Plant

Main

Source


Government Framework

Manydifferentgovernmentalentitieshavearoleintheownership,operationandregulationofwaterservices.

• Localgovernments(cities,villages,townsandafewcounties)operateandfundthemajorityofwatersystemsthatsupplysignificantpopulations.

• Waterauthorities,whichareseparatepubliccorporationsestablishedbyStatelegislation,alsooperatesomewatersystems.

Regionalwatersystems,oftencoveringametropolitanarea,mayberunbyeitherwaterauthoritiesorcounties.Privatewatercompanies’operationsrangefromsmallruralsystemstolargeregionalenterprises.

SeeFigure8formoreinformationonthelargestwatersystemsinNewYorkState.

MunicipalWaterDepartments

AspartoftheirfinancialreportingtotheOfficeoftheNewYorkStateComptroller(OSC),mostcitiesandvillagesreporthavingwaterdepartments–ordivisionscarryingoutsimilarfunctions–thatservetheentiremunicipality.Additionally,9countiesand40townsreporthavingentity-widewaterdepartments.Inall,474localgovernmentsand1jointactivityprovidewaterservicestoalloftheirresidents.

WaterDistricts

Cityandvillagesystemsgenerallyprovidewatertothemostdenselypopulatedareas.Themajorityoftownsdonotprovidewatertoalloftheirresidents,butinsteadprovidewatertopropertiesinspecificareasofthetown,knownaswaterdistricts.2Thisallowstownstoserveonlypopulationcentersthatwouldbenefitfromamorecentralizedwatersystem,whileinundevelopedorless-developedareas,privatewellwatermaybeabettersolution.

Townboardsgenerallyestablishandadministerwaterdistricts.Thepropertiesinaparticulardistrictbearthedistrict’scosts,notthetaxpayersofthetownasawhole.Asingletownmayhavemultiplewaterdistricts,and484towns(halfofthetownsintheState)haveatleastone.3Countiesalsomayestablishandadministerwaterdistricts,whichoperatesimilarlytotowndistricts.

Figure 2

Local Government Water Provision

County City

Town

VillageJoint

Activity TotalTown-Wide

Only

Water Districts

Only

Town-Wide and Water Districts

9 54 20 464 20 371 1 939

Source:OfficeoftheNewYorkStateComptroller(OSC).DoesnotincludeNewYorkCity.Townsmayprovidewaterasatown-widefunction,bywaterdistrictorboth.JointActivity-NorthernWestchesterCountyWaterWorks,servingtheTownsofCortlandt,YorktownandSomersandtheMontroseImprovementDistrict.


WaterAuthorities

Atleast27localauthoritiesintheStatereportcarryingoutfunctionsrelatedtopublicwater.Theyserveareasrangingfromasingletownorcitytoaregion,andincludeseveraloftheState’slargestpublicwatersystems,includingNewYorkCity’s.Whilemostoftheseauthoritiesownandoperatewatersystems,othershavedifferentfunctions.Waterauthoritiesmayexistsolelytoissuebondsforwatersystemimprovementsthatareprovidedbyseparatewaterboardsorauthorities,forexample,ortheymayconductwater-relatedactivitiesotherthanwaterdistribution.Ontheotherhand,somewaterauthoritiesprovideservicesotherthandrinkingwaterdistribution,suchassewerservices.4

StateandFederalRolesinWaterProvision

InNewYork,thefederalandStategovernmentshavetwomajorwater-relatedroles:regulatingpublicwatersystemsandprovidingfundingforlocalwaterprojects.

TheregulationofpublicwatersystemstakesplacemainlythroughtheUnitedStatesEnvironmentalProtectionAgency(EPA)andtheNewYorkStateDepartmentofHealth(DOH).

• Federallaws,includingtheSafeDrinkingWaterAct(SDWA),andEPAregulationssetthebasicregulatorystructureandstandards.5

• StatelawsandDOHregulationsthenadoptandmayexpandthesebasicstandardsforpublicwatersystemsinNewYorkState.

• NewYorkCityand36countiesoverseethewatersystemswithintheirjurisdictions,whileDOHhasdirectoversightofsystemsintheremaining21counties.Forexample,everypublicwatersystemisrequiredtocreateannualWaterQualityReportswithinformationonwatersources,treatmentandquality.Thesereportsaredistributedtothesystems’endusers,andarefiledwiththeoverseeingagency.6

Inaddition,theNewYorkStateDepartmentofEnvironmentalConservation(DEC)regulatesdrinkingwatersources(suchaslakesandrivers)andtheirutilization.7Wellsthatsupplyindividualprivateresidencesaregenerallynotregulated,butwellsthatsupplymultipledwellingsorthepublicinstores,hospitals,schools,etc.areregulatedaspublicwatersystemsasdescribedabove.8

The277privatewatercompaniesthatprovidewatertoabout800,000peopleintheStatearealsosubjecttoalltheregulationsdiscussedabove.Inaddition,theNewYorkStateDepartmentofPublicServiceregulatesthesecompaniesaspublicutilities.Manyareverysmall–homeownersassociationsrun145ofthem–butafewareamongthelargestwatersuppliersintheState.9

TheStateandfederalgovernmentsalsoprovidefundingforwaterinfrastructureprojects.(See“StateandFederalAidIsLimited”onpage19.)


WaterSystemChallenges

NewYorkStateishometosomeoftheoldestcontinuouslysettledcommunitiesinNorthAmerica,andsomeofthewaterinfrastructureisnearlyasold.ManyofNewYork’swatersystemassetsarenearorpasttheirsuggestedusefullives.Watermainsthatcarrywaterthroughoutthesystem,transmissionlinestospecificusers,andthepumptanksandtreatmentfacilitiesaresusceptibletodeterioration,leadingtolong-term–sometimessubstantial–waterlossfromleaks,butmorecommonlyevidencedbywatermainbreaks.(See“WaterDistributionSystems”onpage3.)

TheCityofNewYork’swatersystemistheprimeexample.Ithascomponentsthatdatefromthemid-nineteenthcenturyandhasbecomeverylargeandcomplex.Itsuppliesaboutonebilliongallonsofwaterperdaytoninemillioncustomersthroughasystemofdams,reservoirs,aqueducts,watertunnelsandapproximately6,700milesofwatermains.10

Water Loss

OSChasconductedauditsoflocalgovernmentwaterdepartmentsanddistricts.Theseauditshaveidentifiednumerouswatersystemsthatareexperiencingexcessivewaterlossinthetransmissionmainsbetweenthesourceofthewateranditsmeteredusers.Insomecases,thislossexceeds50percent.11Althoughsomewaterlossisnormalandtobeexpectedincertaininstances(forexample,firehydrantsareunmetered)–highlossratesindicatesignificantleakage,originatingfromtheundergroundinfrastructure.Thisisindicativeofunseendeteriorationorothermalfunctionsinthedistributionsystemthatwarrantsattention.(See“WaterMainBreaks.”)

Waterisavaluableassetanditisimportanttocontrolitsloss.Sincethelocalgovernmentcannotrecoupthecostoflostwaterwithfees,itrepresentswasteofapublicresource.

Water Main Breaks

Breaksinwatermainscanaffectanentirecommunity’swatersupply.Someexamplesofrecentnotablewatermainbreaksinclude:

• TheCityofSyracusehad372watermainbreaksin2015andanother114throughSeptember2016.12

• TheCityofAlbanyestablishedwaterrestrictionsin2016afterawatermainbreakcausedasinkholetoform,swallowingacar.13

• IntheCityofTroy,officialsdeclaredastateofemergencyinJanuary2016duetoalargewatermainbreakthatalsoledtocitywidewaterrestrictions.Thiswasoneofatleast13significantwaterbreaksintheCityoverthelastfiveyears.14

• NewYorkCity’slargesystemalsosuffersfromfrequentwatermainbreaks.In2015,therewere562watermainbreaksreported.Thenumberofbreakshasvariedbetween350and600ayearbetween1999and2015.Coldertemperaturescanincreasethenumberofthesystem’swatermainbreaks.15


Contamination

TheageofmanyoftheState’slocalwatersystemsandthediversesourcesofwaterpollutionmakedrinkingwatercontaminationahighlycomplexchallenge.

Watersourcecontaminationoftencomesfromindustrialsites(see“WaterSourceContamination(Chemical)”),alegacyofmanufacturingfacilities,bothcurrentlyoperatingandabandoned,intheState.Inadequatetreatmentandseparationofsewageandagriculturalandstormwaterrunoffareothermajorcontributors(see“WaterSourceContamination(Wastewater)”).ThesearecoveredbyDEC’sregulationsandarethetargetofclean-upandpreventionprograms,includingthefederalandStateSuperfundprogramsforhazardouswastedisposalsites.16

Leadcontaminationisagrowingconcerninpublicwatersystems.Theprimarysourceofleadindrinkingwateristhecorrosionofmaterialscontainingleadinthesystem.Inthepast,watersystemsmayhaveusedleadservicepipes,leadjointsinmains,andsolderusedinhomeplumbingaswellasplumbingfixturescontaininglead.Thisleadcanleachintodrinkingwater,especially—aswasthecaseinFlint,Michigan—whenthewateriscorrosiveandisnotproperlytreated.17InaccordancewiththeSDWA,EPAandtheStatehaveestablishedlimitsforleadindrinkingwater.Theuseofleadmaterialsforwaterinfrastructure,solderandplumbingfixtureshasbeenbannedsince1986.18

Recently,aftersomeNewYorkschooldistrictsdiscoveredhigher-than-acceptableleadlevelsintheirdrinkingwater,theStateLegislatureenactedlegislationthatrequiresallpublicschooldistrictstoperiodicallytestthewatersuppliesforleadcontamination,exceptthosedeterminedtobelead-freepursuanttotheSDWA.19Schoolswithhighlevelsofleadcontaminationarerequiredtoshutoffcontaminatedoutlets,suchaswaterfountainsandsinks,andaddresstheproblematicfixturesandsystems.

Water-source Contamination (Chemical)

IntheVillageofHoosickFallsandtheTownofPetersburghinRensselaerCounty,plasticmanufacturingplantshadreleasedperfluorooctanoicacid(morecommonlyknownasPFOA)intotheenvironmentasaby-productoftheirindustrialprocesses.ThePFOAultimatelyfounditswayintothegroundwatersourcesforbothmunicipalities’drinkingwater.20

IntheCityofNewburgh,runoffattheStewartAirNationalGuardBasecausedcontaminationbyperfluorooctanesulfonicacid(PFOS,asimilarchemicaltoPFOA).ThePFOSendedupinLakeWashington,theCity’smainreservoir.TheEPAhasissuedhealthadvisorywarningsregardingPFOAandPFOS,whichhavebeenlinkedtoavarietyofadversehealtheffects.21

ChemicalcontaminationhasalsobeenreportedinotherpartsoftheState,includingbutnotlimitedtoLongIsland.22


Water-source Contamination (Wastewater)

NassauandSuffolkcountiesonLongIslandobtainalloftheirdrinkingwaterfromanetworkofaquifersthatunderlietheisland.23SuffolkCounty’sparticularlyheavyrelianceononsitesepticsystemshasjeopardizedlocalwatersources.Inmanycases,thesepticsystemswereintendedforsparsedevelopmentandseasonaluseinareasnowdenselydevelopedwithprimarilyfull-timeresidentsandotherusers.Manyofthesesystemshaveeffectivelyfailed,butfundingtoreplacethemislimited,makingsolutionsincludingexpensivewastewatercollectionandtreatmentsystemsdifficult.24Asaresult,thesesystemscontributethemajorityofnitrogenpollutionintheCounty’sdrinkingwatersources,aswellasintheLongIslandSoundandtheeasternandsoutherncoastalareas.25


Security

Watersystemscanbevulnerabletonaturaldisastersorvandalismthatcancompromisethepurityoftheirsourcesortheintegrityoftheirinfrastructure.Inrecentyears,however,thedangerofterroristattacksonwatersystemshasbecomemoreofaconcern.A2002federallawrequirescommunitywatersystemsthatservemorethan3,300people(covering90percentofpublicwaterusers)toassesstheirvulnerabilitiesandcreatesecurityandemergencyresponseplans.26

Oneemergingsecurityconcernisthepotentialforcyber-attacksthroughthegrowingnumberofInternet-connectedindustrialcontrolsystems(ICS).Althoughwatersystemoperatorsatonetimecontrolledtheirindustrialprocessesmanuallyonsite,mostfacilitiesnowhavemoreautomatedICSs.Inrecentyears,facilitieshaveshiftedtowidely-availablelower-costITprocesseswithgreaterInternetconnectivity.IncreasedconnectivityenablesICSoperatorsandothersupportpersonneltomonitorthesystemremotely,butitalsoincreasestheopportunitiesforapotentialattack.Arecentexampleisareportedcyber-attackonadaminRye,NewYorkbyoperativeslinkedtotheIraniangovernment.Inresponse,arecentlyenactedStatelawrequiresallwatersystemstoincludethepossibilityofcyber-attacksintheirassessmentsofvulnerabilitytoterroristattacks.27DuringthefiscalyearendingSeptember30,2015,theU.S.DepartmentofHomelandSecurityreceivednoticeofandrespondedto295ICScyber-attacks.28


Constraints on Water Supplies

InsufficientwatersuppliesandinadequateinfrastructurealsocauseproblemsinsomepartsoftheState.Forexample,watermainsthataretoosmallcanleadtoinsufficientwaterpressurethatcanhamperdevelopment,orresultincontaminantsenteringthesystemfromcross-connectionswithcontaminatedflows.

Anotherissue,althoughlesscommoninNewYorkStatethaninotherpartsoftheUnitedStates,isrestricteddevelopmentbecauseofalackofavailablewatersources.

• OrangeCounty,forexample,haslimitedlocalwatersources.AlthoughitslocalpublicwatersystemscouldtapintotheNewYorkCitywatersystemthroughtheaqueduct,doingsowouldbeexpensive.Municipalitiesthatdothismustnotonlypurchasethewaterbutmustalsobuildpipelinestotheaqueduct,facilitiestotreatthewaterandadistributionnetwork.Concernsoverhowrecentgrowthhadaffectedwatersupplieshaveledtobuildingmoratoriumsinthepast.29Recently,somelocalitieswithintheCountyhaveimposedtheirowntemporarybuildingmoratoriums,dueinparttolimitationsinthedevelopmentoftheirownwaterandsewersystems.30

• InRocklandCounty,adenselypopulatedsuburbanarea,rapidpopulationgrowthhasstretcheditswaterresourcestothelimit.TheCountygets61percentofitswaterfromgroundwaterwells.SurfacewaterisalsolimitedintheCountyandmostavailablesurfacewatersourcesarealreadybeingused.CyclicdeclinesinprecipitationhavepushedthewholeCountyintoperiodsofwatershortage.31

• LongIsland’swatersupplyisunderintensepressurefrompopulationgrowthandrelateddevelopment.Groundwateroutflowandsaltwaterintrusionaredocumentedconcerns.Theaquifersprovidingfreshwaterareentirelyreliantuponprecipitationtorechargethissupply.Theseissuesarethesubjectofstudyandinitiativesbyfederal,Stateandlocalgroups.32

Potential Effects of Climate Change

Climatechangemayshrinkwatersuppliesaswellasdegradethequalityofremainingsupplies.TheEPAhaspublishedreportsindicatingthatdroughtconditionshavebeenincreasinginintensity,frequencyanddurationinmanyareasoftheUnitedStates.Togetherwithincreasingdemand,thistrendmayaffectthesufficiencyofgroundandsurfacewater.

Overallprecipitationhasactuallybeenincreasinginsomeareas,includingtheNortheasternUnitedStates.However,moreoftheprecipitationiscomingintheformofveryheavyrainsandsnowfalls,whichcancreaterunoffsthathaveadverseimpactsonthequalityofwatersources,nottomentionthedestructiveeffectoffloodsonpropertyandinfrastructureofallkinds.

Higherairandwatertemperaturesandintensifyingdroughtscanalsonegativelyaffectthequalityofwaterinriversandlakes,thesourceforthemajorityofwaterinNewYorkState.Thelocationofinfrastructurecanalsobeanissue.Relocatingfacilitiestoprotectthemfromdamageduetothepotentialriseofsealevelorotherclimate-relatedchangeswouldbecostlyanddisruptive.33


PayingForWaterSystems

Addressingtheseseriouspresentandfuturechallengesforlocalwatersystemswillbeextremelyexpensive.TheEPAhasestimatedthatNewYorkerswillneedtoinvest$22billionoverthe20yearsbetween2011and2030inordertomaintaintheState’sexistingdrinkingwaterinfrastructure.34A2007DOHestimateishigher:overa20-yearperiod,theagencyconcludedtheStatewillneed$39billionincapitalfinancingjustfordrinkingwaterinfrastructureprojects.35

Current Water Finances

Aspreviouslydiscussed,thedeliveryofpotablewaterisoftenalocalgovernmentservice,butthelocalentityprovidingwatermaybeeitheramunicipalgovernment,alocalpublicauthorityoraprivatewatercompany.Municipalwaterdepartmentsandwaterdistrictsmayfundthisservicethroughpropertytaxes,assessmentsorfeesforusage.36Municipalitiesalsousepropertytaxesandassessmentstopayforcapitalimprovements,includingreplacementandnewconstruction.Waterauthoritiesandprivatewatercompaniesarenotpermittedtolevypropertytaxes,sotheygenerallymustraiserevenuesthroughtheimpositionoffeesandotherchargesandmuststructurewaterratestoincludethecostofinfrastructuremaintenance,improvementsandexpansion.Foranyoftheseproviders,theirfinancialresourcesmaybeusedtofundcapitalprojectsonapay-as-you-gobasisortosupporttheissuanceofdebt(dependentupontheirspecificauthorization).


MunicipalOperators

MunicipalgovernmentsfilefinancialdatawithOSCannually,includinginformationaboutwaterfundoperatingrevenueandexpenditures.However,municipalitieswithwatersystemsarenotrequiredtohavewaterfundsandmayreporttheirwater-relatedactivitiesintheirgeneralfund.Eveniftheydohaveawaterfund,theyarenotrequiredtouseittoreportwater-relateddebt.Therefore,theamountactuallyspentonwater-relatedservicesmaybehigherthanindicatedinthisreport.Additionally,theresidentsofmostlargecitiesandmanyofthemorepopuloussuburbsreceivetheirwaterfromwaterauthorities,notfromtheirmunicipality.

• In2015,localgovernmentsreportedcollectinganestimated$1.1billioninwaterfundrevenue.

• Thebulkofthisrevenue($889million,or79percentoftotalrevenue)wasfromfeesandchargesrelatedtothesaleofwater(seeFigure3).

• Manywaterfundsalsoreceivedpropertytaxrevenue($171million,or15percentofrevenue).

• Onlyasmallamountofmunicipalwaterrevenuecomesfromothersources($65million,or6percent),includinggrantsandaidfromtheState.

• Waterfundrevenuegrewby35percentbetween2005and2015,comparedto27percentforalllocalgovernmentfunds,combined.

Municipal Water Revenues, FY 2015 (Millions of Dollars) Excluding New York City and other water authorities

Source:OSC.Includesestimatesforsomelocalgovernments.

Figure 3

Other Revenues, $64.7,6%

Property Taxes, PILOTs and Assessments, $171.3,15%

Water Sales and Charges,$888.6,79%

100105110115120125130135140

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

All Funds

Water Funds

Water and All Funds Revenue Growth, 2005 to 2015

Source:OSC.2015includesestimatesforsomelocalgovernments.

Figure 4

2005

= 1

00


Municipalitiesspendmostofthisrevenueontheday-to-dayoperationofthewatersystems,includingroutinemaintenance.

• Contractualspendingisthesinglelargestexpenditurecategory(49percentofexpenditures),andtypicallyincludesthecostsof:

• Thewateritself;

• Purifying(treating)thewater;

• Distributingthewater;and

• Administeringthewatersystem.

• Personalservices(20percent)andemployeebenefits(13percent)arealsomajorareasofexpenditure.

• Debtservicethatispaidthroughwaterfundsaccountsforabout15percentofmunicipalwaterspending.

Municipal Water Expenditures, FY 2015 (Millions of Dollars) Excluding New York City

Source:OSC.Includesestimatesforsomelocalgovernments.

Figure 5

Equipment and Capital Outlay, $27.4,3%

Debt Service, $145.1,15%

Employee Benefits, $127.1,13%

Personal Services, $203.4,20%

Contractual, $485.5,49%

Other Contractual, $62.5,6%

Water Administration, $116.0,12%

Water Source of Supply, $174.9,18%

Water Purification, $47.4,5%

Water Distribution, $84.6,9%


WaterAuthorities

NewYork’s27localwaterauthoritiesfilefinancialdatainadifferentwaythanmunicipalwatersystems,makingdirectcomparisonsdifficult.In2015,however,NewYork’swaterauthoritiesreported$4.6billioninrevenues.37NewYorkCity’swatersystemaccountedfor$4.0billionoftherevenues.Asmentionedabove,someoftheseauthoritieshavefunctionsotherthanwaterprovision,sorevenueassociatedwithfunctionssuchaswastewaterandeconomicdevelopmentaccountforsomeofthetotalrevenue.

Aswithmunicipalwaterfunds,therewasaspikeinwaterauthorityrevenuesaroundthetimeofthelastrecession,withadditionalfederalgrantfundsandinterestratesubsidiesfordebt,bothprovidedundertheAmericanRecoveryandReinvestmentActof2009.38However,ingeneral,waterauthorityrevenuehasbeengrowingatarelativelymodestcompoundannualrateof1.8percentbetween2008and2015,slowerthanthegrowthinmunicipalwaterrevenues.

$0

$100

$200

$300

$400

$500

$600

2008 2009 2010 2011 2012 2013 2014 2015

Total Revenues

Total Expenses

Water Authority Finances, 2008 to 2015 Excluding New York City

Source:OSC,PublicAuthoritiesReportingInformationSystem.Dataonlyavailablebeginingin2008.IncludesonlyWaterAuthoritiesthatreportedinallyears.

Figure 6M

illio

ns


PublicWaterRevenuesbyRegion

Themixofwatersystemsvariesbyregion,althoughitcanbedifficulttoquantify.Figure7showstotalrevenuecollectedinmunicipalwaterfundsandbywaterauthorities,thoughthemeasuresarenotentirelycomparable,asdiscussedabove.Thetabledoesnotreflecttherevenueofprivatewatercompanies,whichprovidewatertomostofRocklandCountyandasignificantamountofNassauCounty,andthereforeitunderstatestherevenuesoftheMid-HudsonandLongIslandregions.Italsodoesnotcoverprivatewells,whichsupplyusersinmanyless-developedareas.

Ingeneral,municipalwatersystemsaccountforthebulkofwaterrevenuescollectedinmostregions.Insomecases,thisincludesrevenuesthatthemunicipalitiespaytowaterauthoritiesforwatersupplies.

NewYorkCityhasthelargestauthorityoperatedsystem.39OtherlargewaterauthoritiesserveErie,Monroe,OnondagaandSuffolkcountiesandthecitiesofAlbany,BuffaloandNiagaraFalls.TherearenowaterauthoritiesatallintheSouthernTierregion.

Figure 7

Water Revenues By Region, FY 2015 (millions of dollars)Economic Region Municipal Water Revenues Water Authority Revenues

Capital District $120.5 $58.0

Central New York $74.4 $45.4

Finger Lakes $107.3 $73.7

Long Island $192.3 $216.3

Mid-Hudson $329.9 $10.9

Mohawk Valley $33.4 $22.4

North Country $48.2 $26.0

Southern Tier $69.5 NA

Western New York $132.9 $148.8

New York City NA $3,977.2

Total $1,108.3 $4,578.8

Source:OSCandPublicAuthoritiesReportingInformationSystem.Doesnotincludeprivatewatercompanies.Somewaterauthorityrevenuesmaybefromchargestolocalgovernmentsand,therefore,alsoincludedundermunicipalwaterrevenues.Figuresmaynotaddduetorounding.

New York City has the largest authority

operated system. Other large water

authorities serve Erie, Monroe, Onondaga

and Suffolk counties and the cities of

Albany, Buffalo and Niagara Falls.


CosttotheConsumer

Thecostofwaterfortheconsumervariesconsiderably.(SeeFigure8.)Formostofthemajorwatersystems,thetypicalcostforaresidentialcustomerusing12,000gallonspermonthisbetween$30and$60.Themostexpensiveofthemajorwaterproviderswithatypicalcostofover$110amonthisSuezWater(alsoknownasUnitedWater),aprivatewatercompanythatsuppliesmuchofRocklandCounty.NewYorkAmericanWaterinNassauCounty,thesecondhighestcostmajorwatersystematabout$93amonth,isalsoaprivatewatersystem.Attheotherextreme,theTownofHempsteadWaterDepartmentprovideswatertoitsresidentsatatypicalcostofonlyabout$20eachmonth(systemexpensesmayalsobefundedwithassessments).

Figure 8

Largest Water System Operators in New York State, 2016

System Service AreaPopulation Served Water Source

Typical Monthly Water Cost* Notes

New York City Water System New York City 8,271,000 Surface (Catskills/ Delaware and Croton Watersheds) $61.12

Suffolk County Water Authority Suffolk County 1,100,000 Ground $29.22

Monroe County Water Authority Suburban Monroe County and Parts of Surrounding Counties 496,753 Surface

(Lake Ontario, Hemlock Lake) $40.38

Erie County Water Authority Suburban Erie County 480,939 Surface (Lake Erie, Niagara River) $38.04 Operates 15

Systems

Suez Water (United Water) Parts of Rockland and Westchester Counties. 471,028 Ground and Surface

(Lake DeForest) $111.85Private Water Company - 3 Systems

New York American Water Parts of Nassau County 422,540 Ground $92.71Private Water Company - 4 Systems

Onondaga County Water AuthoritySuburban Onondaga County and Parts of Surrounding Counties

300,000 Surface (Lake Ontario, Otisco and Skaneateles Lakes) $42.89

Buffalo Water Authority City of Buffalo 276,000 Surface (Lake Erie) $48.19

Rochester City City of Rochester 214,000 Surface (Hemlock and Canadice Lakes) $50.00

Yonkers City City of Yonkers 196,086 Surface (Purchased from NYC System) $79.16

Syracuse City City of Syracuse 192,000 Surface (Skaneateles Lake) $46.68

Mohawk Valley Water Authority Parts of Herkimer and Oneida Counties 130,000 Surface (Hinckley Reservoir) $61.08

Water Authority of Western Nassau Part of Nassau County 120,000 Ground $48.67Town of Hempstead Water Department Part of Nassau County 110,000 Ground $20.18

Albany City City of Albany 101,082 Surface (Alcove Reservoir) $42.83

Source:SafeDrinkingWaterInformationSystem,UnitedStatesEnvironmentalProtectionAgency,https://www3.epa.gov/enviro/facts/sdwis/search.html.*Costforresidentialcustomerusing12,000gallonspermonth.CalculatedbyOSCbasedoninformationfromeachwatersystemforthelatestavailableyear.Municipalwatersystemsmayalsobefundedwithadvaloremorbenefitassessments.


Paying for Water Improvements

WaterSystemRepairandReplacementisUrgentlyNeeded

Asdiscussedabove,muchofthewaterinfrastructureinNewYorkStateisagingandreachingtheendofitsusefullife.MunicipaldevelopmentintheStatehasbeentakingplaceformanydecades,insomecasescenturies.Therefore,municipalwaterinfrastructurehasbeeninplaceforalongtime,oftenover50yearsandsometimesover100years.Inrecentdecades,havingdevelopedinfrastructurewasfinanciallyadvantageousbecausecommunitiesdidnotneedtoinvestinnewwatersystems.Asaresult,localleadersmanagedtokeepwaterbillslowandfocusfinancialresourceselsewhere.

Sincemuchofthewaterinfrastructureisunderground,itdoesnottypicallydrawtheattentionofresidentsuntilfailureorcontaminationoccurs.Therefore,itcanbedifficultforlocalleaderstogivewatersystemstheattentionandprioritythattheydeserve.Thissamecharacteristicalsomakesitdifficulttodetermineawatersystem’sconditionandaccuratelybudgetforneededrepairsandreplacement.Addingtothedesiretokeepwaterbillslowwasthecommonperceptionofwateraccessasaright,aresourcethatshouldbeavailabletoallpropertyowners,residentsandbusinesses,atnominalprices.However,delaysinimprovementsandreplacementaddtothecostoftheserepairs,astheycanleadtodegradedanddisruptedwaterserviceandincreasingexpendituresifemergencyrepairsbecomenecessary.

Fiscal Impact of Water Conservation

Thesuccessofwaterconservationeffortsinrecentdecadeshasaddedtothecostofwaterforsomeusers.Themovementfromrealpropertytax-basedrevenuestometeredwatersalesintheformoffees,combinedwiththemorerecentimplementationoflow-flowwaterfixturesandefficientappliances,hasdecreasedwaterusagegreatly.40Between1990and2010,thepercapitadailyuseofpublicwaternationallydeclinedfrom153gallonsto134gallons.41Yetthewatersystemsinmanylargerpopulationcenterspredatethesechanges.Whilewaterconservationcanhelpwithwatersufficiencyissuesandhasclearenvironmentalbenefits,italsomeansthatusersmustnowpayhigherpricespergallonforthewatertheystilluseinordertosupporttheexistingwaterinfrastructure.42


Waterinfrastructurereplacementwillbeveryexpensive,andmanylocalgovernmentsfacepotentialcoststhataremanytimestheircurrentannualwaterbudgets.Forlocalgovernmentsthathavebeenmakingonlyminimalinvestmentsintheirwatersystems,itmaybedifficulttoquicklyandeffectivelydeveloptheoversight,planningandfinancialcapacityneededtodealwiththeseproblems.

Localgovernmentsthatareinpoorfinancialconditionorhaveurgentcompetingfinancialprioritieswilloftenpostponeorcancelinfrastructureprojects.Marginalwatersystems,however,canhindereconomicdevelopment,asbusinessesdonotwanttoexpandorrelocatetoareaswithunstableorinsufficientinfrastructure.Thiscancreateaviciouscyclewhereinfrastructureproblemslimitdevelopment.Limiteddevelopmentleadstostrainedfinances,andfinancialproblemsincreasethedifficultyofaddressinginfrastructureneedsadequately.(See“WaterandIndustrialDevelopment.”)

Water and Industrial Development

Insomecases,investinginmajorwatersystemupgradestoaiddevelopmentcanbackfire.Businessescanmakedecisionsthathavefinancialimplicationsforwaterprovidersandmayraisethewatercostofotherconsumers.

• Intheearly1990s,theVillageofCanajohariebuiltupitswaterandsewerinfrastructuretosupporttheneedsofaBeech-Nutplant.About15yearslater,longbeforetheVillagepaidoffthecostoftheupgrade,Beech-Nutmovedtoadifferentlocale,leavingthevillagetopayforthenowoversizedsystem.43

• TheSaratogaWaterAuthoritybuiltanewfacility,chieflytomeettheneedsofaGlobalFoundriesplantinMalta,NY.However,GlobalFoundriesthencontractedwithaprivatewatersupplierforaportionofitswaterneeds.Thisreportedlyhaslefttheauthorityunabletosellenoughwatertobalanceitsbudget.44


StateandFederalAidIsLimited

Giventhehighcostofmajorwatersystemrepairsandupgrades,localgovernmentsoftenlookforfederalandStatefundingtodefraythesecosts.Thisfundingislimited,buttherearesomerecentinitiativesthatlocalofficialsshouldbeawareof.

• MostoftheStatefundingforlocalwaterprojectscomesfromtheDrinkingWaterStateRevolvingFund(DWSRF),whichprovideslow-costfinancingforsuchimprovementprojectsthroughouttheState.DOHandtheEnvironmentalFacilitiesCorporationjointlyadministerthisfund.Asborrowerspaybacktherevolvingfund’sloans,themoneybecomesavailablefornewprojects.TheDWSRFcanprovidemarketratefinancing,reducedinterestrateloans,andlimitedgrantsforeligiblewatersystemprojects.TheEPAadministersthefederalmoneythatprimarilyfundsthisprogram.

• Sinceitsestablishmentin1996,theDWSRFhasassistedpublicwatersystemswithover$5.24billioninfinancingfordrinkingwaterinfrastructurethroughouttheState,althoughonly$337millionofthiswasingrants.45However,95percentofthedrinkingwaterinfrastructureimprovementprojectssubmittedtotheDWSRFhavereceivednoassistanceofeitherkind.46

• TheDWSRFhasalsofinanciallysupportedthepropertrainingandcertificationofwatersystemoperators.47

• Inresponsetothesignificantneedforwaterinfrastructurefunding(bothdrinkingwaterandwastewater),theStateestablishedtheNYSWaterInfrastructureImprovementAct(WaterGrantsProgram)in2015.Todate,thisprogramofferedatotalof$107.5millionindrinkingwatergrantsinStatefiscalyears2015-16and2016-17,justasmallfractionofthedecade-old,$39billionestimatebyDOHforworkneededover20Years.48

• TheEPAalsoadministerstheWaterInfrastructureFinanceandInnovationAct(WIFIA),whichoperatesincoordinationwiththeDWSRFinordertoprovidesubsidizedfundingforlargeprojects.49

• TheExecutiveBudgetforStateFiscalYear2017-18proposesa$2billioncapitalappropriationforwaterqualityimprovements,providing$400millioninspendingauthorityannuallyoverfiveyears.Theproposalwouldprovidefinancingfordrinkingwaterandwastewaterinfrastructureupgrades,landacquisitiontoprotectwatersources,replacementoflead-contaminateddrinkingwaterlines,andremediationofdrinkingwatercontaminationfromsolidwastesites.PartoftheappropriationwouldfundanewRegionalWaterInfrastructureGrantsProgramthatwouldprovideStateassistancetomunicipalities,publicbenefitcorporationsandpublicauthoritiesforwaterinfrastructureprojectsthathavearegionalimpact.


ConclusionandRecommendations

Therearemanywaysinwhichtheresponsibilityofoperatingandmaintainingawatersystemcanbeasignificantchallengeforalocalgovernmentandthepeopleitserves.Afailureinawatersystem,whetherthroughcontamination,mainbreaksordeliberatesabotage,canbecatastrophicforacommunity.Tofurthercomplicatematters,developingthepropersafeguardstoprotectagainstcertaintypesofriskcanrequirelocalofficialstodevelopspecialexpertiseinmorecomplexareassuchassecurity.

Certainproblemscannotbepredictedandmayunfoldwithoutanyforewarning.Evenwhenofficialsareabletothinkstrategicallyabouttheirshort-termandlong-termneeds,identifyingadequatefinancialresourcestopayforimprovementsandrepairscanbeadauntingtask.

Ideally,waterratesand/orpropertytaxesshouldbesufficienttosupportallwaterserviceexpenses,includingcapitalimprovements.Municipalitiesmustplanfortheserealisticallyandbudgetwiththeminmind.WhileStateandfederalaidmaybeofsomeassistance,itisnotcurrentlyatalevelthatwillsolvetheproblemsassociatedwithwatersystemcosts.Capitalplanningistheonlyrealisticpathtowardeffectivelymaintainingandimprovingwatersystems.Unfortunately,OSCauditshavefoundthatmanylocalgovernmentsdonotconsistentlyusecapitalplanningasatool.Furthermore,eventhemostthoughtfulplanssometimestakeabackseatduringtoughfiscaltimes.

Asonewaterindustrygrouphasputit,theUnitedStatesisnowinan“EraofInfrastructureReplacement,”whenwewillneedtorebuildournowagingwatersystems.50Localgovernmentshavetheprimaryresponsibilityforthistask,evenastheirresourcesarealreadystretchedthinandthereislittleappetiteforincreasingtaxes,assessmentsandfees.Inaddition,manyoftheexistingwatersystemsweredesignedtoservepopulationsthathaveshifted,leavingolderwatersystemswithexcesssupply.Thepotentialeffectsofclimatechangeaddanotherlayerofuncertaintytothelong-termavailabilityofcleandrinkingwateranddependabilityofexistinginfrastructure.

Allofthesefactsmakeforachallengingenvironmentformunicipalities.However,therearesomesimplestepsthatcanhelplocalofficialsconfrontthisimportantissue.

Sustained Commitment to PlanningEverylocalgovernmentshouldhaveamultiyearfinancialplan,acorrespondingcapitalplan,andaworkableprocesstokeepbothofthemup-to-date.Afinancialplanprojectsrevenuesandexpendituresforseveralyearsintothefuture,givenasetofeconomicandpolicyassumptions,whileacapitalplanbalancestheneedtomaintainandimprovethelocalgovernment’scapitalassets(essentiallyeverythingalocalgovernmentowns)withinthelocalgovernment’sfiscalconstraints.Thebestcapitalplansincludewaterassetneedsinthecontextofallmunicipalneeds.Forexample,repairsandupgradestodrinkingwatersystemsshouldbecoordinatedwithsimilarwastewatersystemneeds,orevenroadrepairsandotherrelatedinfrastructurerepairsandimprovements.Localgovernmentsoftenborrowtoachievetheseends,andagoodcapitalplanwillincludeaconsiderationofhowmuchdebtissustainable.


Understand and Effectively Utilize Capital ReservesInconjunctionwithstrongplanningpractices,localgovernmentsshouldalsoconsiderappropriateuseofcapitalreservesforwaterassets.Whenmunicipalofficialscreateandusefinancialplans,theycanidentifywhenwaterratesareinsufficienttomeetthetruecostsofwaterassetrepairs,upgradesandreplacements.Goodplanningcanhelpofficialsavoidsituationswheretheymaybetemptedtofollowunsoundpractices,suchasdivertingwaterfundreservestoplugastructuralbudgetgapinthegeneralfund,forexample.

OSCprovidestrainingandpublicationsthatcanhelplocalgovernmentofficialslearnmoreaboutcapitalplanning,multiyearfinancialplanningandestablishingcapitalreserves.ThesecanbefoundatTheAcademyforNewYorkState’sLocalOfficials.

Develop a Cogent Communication StrategyClean,safedrinkingwaterisuniversallyconsideredtobeacriticalresource.However,withrespecttomattersofresponsibilityandcost,reasonablepeoplemaydisagree.Localleadersmustworkdiligentlytoincreasecivicengagementonthisimportantissue.Communicationstrategiesmustconveyasimplemessageaboutneeds,tradeoffsandrisksifnoactionistaken.Suchaprocesscanhelpsetthetoneforthoughtfuldeliberationbythecommunity.

Aparticularlyimportantelementintheprocessistodevelopandcommunicatealong-termapproachtowardanyanticipatedratechanges.Thisrequiresmunicipalofficialstocreateareasonableanddefendableestimateofrequiredannualincreasestoachievealong-termcapitalplan,andthenensuringthatrate-payersunderstandwhatthoseincreasesrepresentandhowtheyarenecessarytoachievetheestablishedgoals.

Be Aware of Funding OpportunitiesAlthoughthereismoreneedthanfundingavailable,federalandStategrantsandloansareanimportantpartofalocalgovernment’soverallresources.Asnewprogramsareunveiled,itiscriticalthatlocalofficialsstayinformedabouttheseopportunitiesandanyconditionsthatmightbeattached.

ComptrollerDiNapolihascalledformorecomprehensivecapitalplanningbyNewYorkStatetoinformpolicymakersandthepublicastothelevelofinvestmentneededforbothStateandlocalinfrastructure.Suchaprocesswouldprovideastrongerfoundationforeffectiveplanningandinvestment.

FutureworkfromthisOfficewillfocusonhelpinglocalgovernmentslearnmoreaboutthecriticalchallengesofmaintainingandpayingforwatersystems.


1 Safe Drinking Water Information System,UnitedStateEnvironmentalProtectionAgency,www.epa.gov/enviro/facts/sdwis/search.html.BasedondataextractedonAugust18,2016.

2 UnderTownLawsections54and209-q,waterimprovementsmaybeundertakenbytownswithouttheformationofaspecialdistrict.Thecapitalcostsmaybebornebyeitheranareaofbenefitedpropertiesoraspartofthegeneraltaxlevyontheentireareaofthetownoutsideofanyincorporatedvillages.Operationandmaintenancecostsofthesetownimprovementsarebornebytheentiretownoutsidevillagearea.

3 AlllocalgovernmentwaterfunddataisfromtheOfficeoftheNewYorkStateComptroller.4 SomeseparatepublicauthoritieshavebeencreatedbecausetheStateConstitutiongenerallyprohibitsthecreationofpubliccorporationshavingthepowerbothtocontractindebtednessandthepower,withinacity,tocollectfeesforservices,iftheservicesareofthenatureformerlyfurnishedbythecityandthereisnovoterapproval.

5 88 Stat. 1660 (1974).6 Drinking Water Protection Program,NewYorkStateDepartmentofHealth,

www.health.ny.gov/environmental/water/drinking/.7 Water: Managing Our Lakes, Rivers and Coasts,NewYorkStateDepartmentofEnvironmentalConservation,

www.dec.ny.gov/chemical/290.html.8 Private Drinking Water Wells,UnitedStateEnvironmentalProtectionAgency,www.epa.gov/privatewells.9 Water,NewYorkStateDepartmentofPublicService,www.dps.ny.gov.10NewYorkStateDepartmentofHealth,DrinkingWaterInfrastructureNeedsofNewYorkState,November2008,p.5,

www.health.ny.gov/environmental/water/drinking/docs/infrastructure_needs.pdf;About Us,NewYorkMunicipalWaterFinanceAuthority,www.nyc.gov/html/nyw/html/aboutus.html.

11Theindustrystandardforacceptablewaterlossis10percent;AWWALeakDetectionandWaterAccountabilityCommittee,“CommitteeReport:WaterAccountability,”Journal - American Water Works Association,July1996,pp.108-111,www.awwa.org/publications/journal-awwa/abstract/articleid/13583.aspx;Anexampleofanauditwithhighwaterlosswas,OfficeoftheNewYorkStateComptroller,Village of Sherman: Internal Controls Over Water and Sewer Operations,2011M-68,2011.

12Baker,Chris.“After372watermainbreaksin2015,Minercallsforfederalfundingtofixpipes,”Syracuse.com,January6,2016,www.syracuse.com/news/index.ssf/2016/01/mayor_miner_calls_for_more_federal_funding_to_fix_broken_pipes.html;WaterData,CityofSyracuse,www.dashboards.syrgov.net/SyracuseDashboards/Water.html, Accessed on 10/4/16.

13Lawrence,J.P.,“AlbanyWaterMainBreak,SinkholeMakeforMessyDay,”AlbanyTimes-Union,August2,2016,www.timesunion.com/local/article/Albany-deals-with-another-sinkhole-9056499.php;“HudsonAvenueReopenedNearSinkholeSiteonSouthLakeAvenue,”News,CityofAlbany,www.albanyny.org/newsandevents/news/16-08-29/Hudson_Avenue_Reopened_Near_Sinkhole_Site_on_South_Lake_Avenue.aspx.

14DeFaciani,Emily.“WaterMainBreakFloodsRoadsandHomes,TroyDeclaresStateofEmergency,”TimesWaterCableNews,January17,2016,www.twcnews.com/nys/capital-region/news/2016/01/17/water-main-break-in-troy.html.

15AECOM,Fiscal Year 2016 Consulting Engineer’s Report,NewYorkCityMunicipalWaterFinanceAuthority,March1,2016,p.25-26,www.nyc.gov/html/nyw/pdf/fy2016_consulting_engineers.pdf.

16Superfund,UnitedStateEnvironmentalProtectionAgency,www.epa.gov/superfund;State Superfund Sites,NewYorkStateDepartmentofEnvironmentalConservation,www.dec.ny.gov/chemical/8439.html.

17Get Ahead of Lead! Get the Lead Out of Drinking Water,www.health.ny.gov/publications/2508/.18Use of Lead Free Pipes, Fittings, Fixtures, Solder and Flux for Drinking Water,UnitedStatesEnvironmentalProtectionAgency,

www.epa.gov/dwstandardsregulations/use-lead-free-pipes-fittings-fixtures-solder-and-flux-drinking-water?cd=12&hl=en&ct=clnk&gl=us.

19Crowley,Cathleen.TimesUnion.MoreLeadFoundinVoorheesvilleElementaryWaterOutlets,September28,2016,www.timesunion.com/local/article/More-lead-found-in-Voorheesvile-Elementary-water-9392856.php;Chapter296oftheLawsof2016;NYSDepartmentofHealthRegulationsSubpart67-4;“GovernorCuomoSignsLandmarkLegislationtoTestDrinkingWaterinNewYorkSchoolsforLeadContamination,”PressRelease,GovernorAndrewM.Cuomo,StateofNewYork,September9,2016.

Notes


20U.S.EnvironmentProtectionAgency,FactSheet:FPOA&PFOSDrinkingWaterHealthAdvisories,May31,2016;NewYorkStateSenate,StandingCommitteeonHealthandStandingCommitteeonEnvironmentalConservation,Water Quality and Contamination,January3,2017,www.nysenate.gov/sites/default/files/articles/attachments/hannon_water_quality_report.pdf.

21Dunne,Allison.WMACNortheastPublicRadio.OfficialsDetailActionsonPFOSContaminationinNewburgh,June21,2016.www.wamc.org/post/officials-detail-actions-pfos-contamination-newburgh;Lerner,Sharon,“WithNewEPAAdvisory,DozensofCommunitiesSuddenlyHaveDangerousDrinkingWater,”The Intercept,May19,2016,www.theintercept.com/2016/05/19/with-new-pfoa-drinking-water-advisory-dozens-of-communities-suddenly-have-dangerous-water/.

22NewYorkStateSenate,Water Quality and Contamination.23Our Long Island Aquifers: The Basics,NassauSuffolkWaterCommissioners’Association,

www.nswcawater.org/water_facts/our-long-island-aquifers-the-basics/.24Twarowski,Christopher,TimothyBolgetandSpencerRumsey,“SuffolkCountySepticSystemsPollutingWaterSupply,”Long

Island Press,February23,2013,http://archive.longislandpress.com/2012/02/23/suffolk-county-septic-systems/.25SuffolkCountyGovernment,Comprehensive Water Resources Management Plan,pp.8-1–8-3,

www.suffolkcountyny.gov/Departments/HealthServices/EnvironmentalQuality/WaterResources/ComprehensiveWaterResourcesManagementPlan.aspx.

26AmericanWaterWorksAssociation,Protecting Our Water: Drinking Water Security in America After 9/11,2003,www.fortressteam.com/resources/watersecurity.pdf;Public Health Security and Bioterrorism Preparedness and Response Act of 2002:Pub.L.No.107–188(2002),www.congress.gov/107/plaws/publ188/PLAW-107publ188.pdf.

27Chapter519oftheLawsof2016.28Yadron,Danny,“IranianHackersInfiltratedNewYorkDamin2013,”The Wall Street Journal,December20,2015,

www.wsj.com/articles/iranian-hackers-infiltrated-new-york-dam-in-2013-1450662559;Protecting Sensitive Data and Other Local Government Assets: A Non-Technical Cybersecurity Guide for Local Leaders,OfficeoftheStateComptrollerJune2016,availableatwww.osc.state.ny.us/localgov/lgli/pdf/cybersecurityguide.pdf.

29Mano,JoMargaret,Planning and Zoning in Southern New York State: Recent Changes and Implications for Planning and Geographic Information Systems in the 1990s,www.msaag.org/wp-content/uploads/2013/04/8_Mano.pdf.

30Quinn,Bob,“TheKJoverflow,”The Chronicle,September8,2016,www.chroniclenewspaper.com.31Water Resources in Rockland – Planning in a Changing World,ColumbiaUniversity,NationalInstituteofEnvironmentalHealthSciencesSuperfundResearchProgram,www.superfund.ciesin.columbia.edu/Rockland/supply.

32Long Island Water Supply Sustainability Study,NewYorkStateDepartmentofEnvironmentalConservation,www.dec.ny.gov/lands/108901.html;Long Island Groundwater,EarthScienceEducationalResourceCenter,StonyBrookUniversity,www.eserc.stonybrook.edu/cen514/info/LI/Groundwater.pdf.

33Climate Impacts on Water Resources,USEnvironmentalProtectionAgency,https://www.epa.gov/climate-impacts/climate-impacts-water-resources;Georgakakos,A.,P.Fleming,M.Dettinger,C.Peters-Lidard,Terese(T.C.)Richmond,K.Reckhow,K.White,andD.Yates.Ch.3:Water Resources. Climate Change Impacts in the United States: The Third National Climate Assessment,J.M.Melillo,Terese(T.C.)Richmond,andG.W.Yohe,Eds.,U.S.GlobalChangeResearchProgram,pp.69-112,http://nca2014.globalchange.gov/report/sectors/water.

34TheEPA’s$22billionestimatereferstoprojectseligibleforsupportfromtheDrinkingWaterStateRevolvingFund(DWSRF)anddoesnotincludecontaminatedsitecleanups,forexample.UnitedStatesEnvironmentalProtectionAgency,Drinking Water Infrastructure Needs Survey and Assessment: Fifth Report to Congress,April2013,p.19.

Notes


35NewYorkStateDepartmentofHealth,Drinking Water Infrastructure Needs of New York State,November2008,p.16,www.health.ny.gov/environmental/water/drinking/docs/infrastructure_needs.pdf.Theestimateisfor2007to2026forwatersystemsservingmorethan3,300peopleandfor2003to2022forwatersystemscoveringlessthan3,300people.

36Therearetwotypesofassessmentsthatmaybeimposedonbehalfofwaterdistrictsunderthepropercircumstances:abenefitassessment,whichisachargeimposedinproportiontothebenefitsreceivedbytheproperty,andanadvaloremlevy,whichisimposedinthesamemannerandatthesametimeasrealpropertytaxes(i.e.,generally,anamountper$1,000ofassessedvalue).(SeeRealPropertyTaxLaw§102.)

37DataasofOctober5,2016.25of27waterauthoritiesreporting.38BuildAmericaBondswereintroducedin2009aspartoftheAmericanRecoveryandReinvestmentActeconomicstimulus.Theyweretaxablemunicipalbondswithtaxcreditsand/orfederalsubsidiesforbondholdersandissuers.Recovery Act: Build America Bonds,UnitedStatesDepartmentoftheTreasury,www.treasury.gov/initiatives/recovery/Pages/babs.aspx.

39TwoauthoritieswithresponsibilitiesrelatedtotheNewYorkCityWaterSystem,theNewYorkCityWaterBoardandtheNewYorkCityMunicipalWaterFinanceAuthority,workinginconjunctionwiththeNewYorkCityDepartmentofEnvironmentalProtection.

40NewYorkCityadoptedalawin1985thatrequiredtheinstallationofwatermetersinallpropertiesinthecityoverthefollowing10years,“WhyamIrequiredtohaveawatermeter?”Water and Sewer Bills: Frequently Asked Questions,TheCityofNewYork,www.nyc.gov/html/dep/html/customer_assistance/wsbillfaq.shtml;Metering Introduction, Alliance for Water Efficiency,www.allianceforwaterefficiency.org/metering.aspx.

41Estimated Use of Water in the United States in 2010,p.45,thisincludeswaterusedforindustrialpurposesandwaterthatislostindistribution,http://pubs.usgs.gov/circ/1405/pdf/circ1405.pdf.

42Water Consumption in The New York City Water Supply System,NewYorkCityOpenData,www.data.cityofnewyork.us/Environment/Water-Consumption-In-The-New-York-City/ia2d-e54m/data.

43OfficeoftheNewYorkStateComptroller,Annual Performance Report on New York State’s Industrial Development Agencies: Fiscal Year Ending 2009,July2011,p.6,www.osc.state.ny.us/localgov/pubs/research/idaperformance2011.pdf.

44Yusko,Dennis,“SecondWaterTapforChipFab,”Times Union,December10,2014,www.timesunion.com/business/article/Second-water-tap-for-chip-fab-5948777.php.

45Drinking Water State Revolving Fund,NewYorkState,EnvironmentalFacilitiesCorporation,www.nysefc.org.46Drinking Water Infrastructure Needs of New York State,NewYorkStateDepartmentofHealth,

www.health.ny.gov/environmental/water/drinking/infrastructure_needs.htm,47NewYorkStateDepartmentofHealth,Report to the Governor: An Assessment of Public Water System Capacity

Development Program,September2008,p.2,www.health.ny.gov/environmental/water/drinking/capacity/docs/08govrpt.pdf.

48NewYorkStateDepartmentofHealth,EnvironmentalFacilitiesCorporation,Final Intended Use Plan: Drinking Water State Revolving Fund,October1,2016–September30,2017,October2016,p.4,www.efc.ny.gov.

49Water Infrastructure Finance and Innovation Act (WIFIA),UnitedStatesEnvironmentalProtectionAgency,www.epa.gov/wifia.

50AmericanWaterWorksAssociation,Buried No Longer: Confronting America’s Water Infrastructure Challenge,p.3,www.awwa.org/Portals/0/files/legreg/documents/BuriedNoLonger.pdf.

Notes


Mailing Address for all of the above:

Office of the New York State Comptroller, 110 State Street, Albany, New York 12236

email: [email protected]

DirectoryCentral OfficeDivision of Local Government and School Accountability

Andrew A. SanFilippo, Executive Deputy Comptroller

Executive ..................................................................................................................................................................474-4037 Gabriel F. Deyo, Deputy Comptroller Tracey Hitchen Boyd, Assistant Comptroller

Audits, Local Government Services and Professional Standards ................................................ 474-5404 (Audits, Technical Assistance, Accounting and Audit Standards)

Local Government and School Accountability Help Line .............................(866) 321-8503 or 408-4934 (Electronic Filing, Financial Reporting, Justice Courts, Training)

New York State & Local Retirement SystemRetirement Information Services

Inquiries on Employee Benefits and Programs .................................................................474-7736

Bureau of Member and Employer Services ............................................ (866) 805-0990 or 474-1101Monthly Reporting Inquiries ...................................................................................................474-1080 Audits and Plan Changes ..........................................................................................................474-0167 All Other Employer Inquiries....................................................................................................474-6535

Division of Legal ServicesMunicipal Law Section ........................................................................................................................474-5586

Other OSC OfficesBureau of State Expenditures .........................................................................................................486-3017

Bureau of State Contracts .................................................................................................................. 474-4622

(Area code for the following is 518 unless otherwise specified)


DirectoryRegional OfficeDivision of Local Government and School Accountability

Andrew A. SanFilippo, Executive Deputy Comptroller

Gabriel F. Deyo, Deputy Comptroller (518) 474-4037Tracey Hitchen Boyd, Assistant Comptroller

Cole H. Hickland, Director • Jack Dougherty, Director Direct Services (518) 474-5480

BINGHAMTON REGIONAL OFFICE - H. Todd Eames, Chief Examiner State Office Building, Suite 1702 • 44 Hawley Street • Binghamton, New York 13901-4417 Tel (607) 721-8306 • Fax (607) 721-8313 • Email: [email protected] Serving: Broome, Chenango, Cortland, Delaware, Otsego, Schoharie, Sullivan, Tioga, Tompkins counties

BUFFALO REGIONAL OFFICE – Jeffrey D. Mazula, Chief Examiner 295 Main Street, Suite 1032 • Buffalo, New York 14203-2510 Tel (716) 847-3647 • Fax (716) 847-3643 • Email: [email protected] Serving: Allegany, Cattaraugus, Chautauqua, Erie, Genesee, Niagara, Orleans, Wyoming counties

GLENS FALLS REGIONAL OFFICE - Jeffrey P. Leonard, Chief Examiner One Broad Street Plaza • Glens Falls, New York 12801-4396 Tel (518) 793-0057 • Fax (518) 793-5797 • Email: [email protected] Serving: Albany, Clinton, Essex, Franklin, Fulton, Hamilton, Montgomery, Rensselaer, Saratoga, Schenectady, Warren, Washington counties

HAUPPAUGE REGIONAL OFFICE – Ira McCracken, Chief Examiner NYS Office Building, Room 3A10 • 250 Veterans Memorial Highway • Hauppauge, New York 11788-5533 Tel (631) 952-6534 • Fax (631) 952-6530 • Email: [email protected] Serving: Nassau, Suffolk counties

NEWBURGH REGIONAL OFFICE – Tenneh Blamah, Chief Examiner 33 Airport Center Drive, Suite 103 • New Windsor, New York 12553-4725 Tel (845) 567-0858 • Fax (845) 567-0080 • Email: [email protected] Serving: Columbia, Dutchess, Greene, Orange, Putnam, Rockland, Ulster, Westchester counties

ROCHESTER REGIONAL OFFICE – Edward V. Grant Jr., Chief Examiner The Powers Building • 16 West Main Street – Suite 522 • Rochester, New York 14614-1608 Tel (585) 454-2460 • Fax (585) 454-3545 • Email: [email protected] Serving: Cayuga, Chemung, Livingston, Monroe, Ontario, Schuyler, Seneca, Steuben, Wayne, Yates counties

SYRACUSE REGIONAL OFFICE – Rebecca Wilcox, Chief Examiner State Office Building, Room 409 • 333 E. Washington Street • Syracuse, New York 13202-1428 Tel (315) 428-4192 • Fax (315) 426-2119 • Email: [email protected] Serving: Herkimer, Jefferson, Lewis, Madison, Oneida, Onondaga, Oswego, St. Lawrence counties

STATEWIDE AUDIT - Ann C. Singer, Chief Examiner State Office Building, Suite 1702 • 44 Hawley Street • Binghamton, New York 13901-4417 Tel (607) 721-8306 • Fax (607) 721-8313

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ContactOfficeoftheNewYorkStateComptrollerDivisionofLocalGovernmentandSchoolAccountability

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