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City fails to collect $7M in own water bills

By David Freedlander | dfreedlander@am-ny.com
6:21 PM EDT, June 9, 2008

The city has failed to collect more than $7 million from water and sewage fees from one of its own agencies.

A new report issued Monday by city Comptroller Bill Thompson found that the city did not bill the Economic Development Corporation (EDC) for water and sewage use at the Brooklyn Army Terminal for 22 years. In turn, EDC did not pass on the cost to the more than 70 different companies, mostly light manufacturing and design firms, leasing the 97-acre space from the agency.

"It is unconscionable that the Economic Development Corporation would not pay these bills or collect the costs from its sub-tenants since 1986," Thompson said. "During this time, ... a single family homeowner has watched the city's water bill skyrocket by 464 percent over the last 22 years, while the Terminal has watched its bill go up from zero to zero."

The report comes at an awkward time. Last month, the New York City Water Board announced that it was increasing water rates for homeowners by 14.5 percent. It was the second straight year of double digit hikes and increased the annual water bill for most apartment units by more than $130.

Janel Patterson, an EDC spokeswoman, said that the problem was being addressed. Since April, EDC has brought the account current for the prior two years. Moving forward, the city will bill EDC quarterly for water consumption at the terminal.

The city can't get back the lost revenue, however. Water Board rules preclude the Department of Environmental Protection from recouping on delinquent bills more than 4-years-old.

Related topic galleries: Bill Thompson, Economic Policy, Corporations

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