NYC-WTC_000195490

NYC 9/11 Public Portal Document

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Water and Sewer Revenues I Water and Sewer charges are collected by the New York City Water Board. From these charges the Board has paid revenue to the City in two components;^ reimbursement for operation and maintenance (O&M) of the water delivery and waste water disposal systems and rent. The O&M reimbursement is equal to the amount spent by the City to supply water and treat and dispose of waste water on behalf of the Board. The City is reimbursed only for its expenditures. The rental payment from the Water Board is intended to pay for the use of the City’s water supply, distribution, collection and treatment plant, and is equal to the greater of debt service payments for outstanding water and sewer-related general obligation debt or 15 percent of Water Authority debt service. 1 The Water Board has proposed a 3.5 percent rate increase for 2002. The forecast for Water Board revenue is $ 1,57 billion, including a City paynient of $33 million for municipal water and sewer charges and $84 million for interest on funds held by the New York City Municipal Water Finance Authority. The Water Board will pay $609 million for Water Board and Authority expenses and debt service. The City will receive $720 million for services rendered in the delivery of water and the collection, treatment, and disposal of waste water, and $129 million for the rental of the water supply and sewer system plant, in accordance with the lease agreement between the Water Board and the City. , ! '

Other Income

Other income includes fines, franchise payments, rental income, interest earned on the City’s cash balances, and income from other areas in which productivity may have a positive effect on the amount of revenue collected. iIp Each of the sources included in this area has its own unique basis for management and improvement, some of which are directly affected by the City’s policy toward such varied items as housing, economic development, transportation, and quality of life issues.

Interest Income

The City earns interest income by investing funds from four sources: overnight cash balances, debt service accounts, sales tax, and cash bail balances. Overnight cash balances are invested and earn interest at approximately the federal funds rate. । Property tax receipts are held by the State Comptroller to satisfy City debt service payments, 1 and earnings are forwarded to the City monthly based on bond payment schedules. The determinants of the value of this revenue source are the value of cash balances, tax receipts, and the interest rate.

The 2002 forecast for interest earnings is $ 144 million, a decrease of $56 million from 2001. Lower interest IB" rates, a change in short term borrowing, and an expected return to normal cash balances account for this change. i Franchises and Privileges i This revenue consists of franchise fees for the public use of City property and privilege and concession fees for the private use of City property. These uses include franchised bus lines, conduits that run under City streets, 1! concessions in public parks and buildings, waste disposal at City disposal facilities, and payments from utility K

I companies for transformers on City property. I (If The 2002 forecast for franchise revenue is $189 million, compared to $193 million in 2001. The 2001 collections reflect higher fee payments from cable television and high capacity fiber franchises.

Rental Income ; \

■ Rental income is derived from revenue collected from both long and short-term agreements for the occupancy of City-owned property, including condemnation sites and in rem building^. Approximately 4,170 properties are

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