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052011 DEP Water Rate Proposal

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Details of this year's water rate proposal.

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052011 DEP Water Rate Proposal

  1. 1. REBNYReal Estate Board of New York570 Lexington Avenue May 3, 2011 <br />
  2. 2. DEP Water Supply System<br />2<br />
  3. 3. DEP Waste Water Treatment System<br />3<br />
  4. 4. DEP’s Mission<br />DEP must supply, deliver, and treat the water 9 million New Yorkers need every day; protect and improve the waters that surround us, the air we breathe, and New Yorker’s overall quality of life.<br /><ul><li>100 Strategies and Initiatives to achieve this mission in 4 core areas:
  5. 5. Serving 9 million customers
  6. 6. Operating the safest, highest-performing water utility at the lowest possible cost
  7. 7. Building capital projects on time and on budget
  8. 8. Delivering clean waters, clean air, and a sustainable quality of life for all New Yorkers</li></ul>4<br />
  9. 9. 3<br />FY 2012 Rate Proposal Summary<br /><ul><li>Proposing 7.5% rate increase; 35% lower than March 2010 projection
  10. 10. Offering 2% discount for enrolling in paperless billing and direct debit
  11. 11. Create a My DEP Account and register online at www.nyc.gov/dep
  12. 12. Net increase for customers who take advantage of discount is 5.4%</li></li></ul><li>6<br />Capital Outlook<br /><ul><li>$14.9B (72%) of capital commitments for FY 2002 to 2010 were driven by mandates
  13. 13. DEP is working with state and federal regulators to eliminate, reduce and defer future mandates</li></ul>Capital Outlook FYs 2007—2015 <br />($ in billions)<br />
  14. 14. 7<br />Capital Expenditures & Debt Service Impact<br /><ul><li>There is a time lag between Commitments and Expenditures; debt is issued as Expenditures are incurred
  15. 15. From $22.5B of Commitments made from FY 2002 to 2011, Expenditures have totaled $19.4B and net debt issuance is projected to total $16.6B in the same period
  16. 16. Annual Net Debt Service increased by 134% between FY 2002 and FY 2011 and is projected to increase by $193 million or 17% in 2012
  17. 17. In future years, even though annual Commitments and Expenditures decrease, Annual Net Debt Service continues to rise</li></li></ul><li>FY 2011 Budget (Projected)<br />8<br />FY 2011 Budget<br />* Debt Service is net of prior year-end cash balances and includes $260 million of cash defeasance of bonds in FY 2011<br />
  18. 18. Legal Mandates Cost Average Homeowner $169<br /><ul><li>The annual cost for commercial and industrial customers is $2,108 and $210,831 respectively</li></ul>*Debt Service Impact is net of any carryover for the years in question<br />9<br />
  19. 19. Critical System Investments<br />10<br /><ul><li>The annual cost for commercial and industrial customers is $1,081 and $108,141 respectively</li></ul>*Debt Service Impact is net of any carryover for the years in question<br />
  20. 20. Customer Service <br /><ul><li>Develop a leak notification system for customers who want to know when their water use deviates from normal consumption patterns
  21. 21. Continue programs such as WDAP for customers in financial distress
  22. 22. Increase online permitting for businesses, engineers, and contractors
  23. 23. Consolidate permitting functions to simplify customer interactions with DEP</li></ul>11<br />
  24. 24. 12<br />Customer Initiatives: My DEP Account<br /><ul><li>My DEP Account is your one stop shop for all the information you need to know about your water and sewer account
  25. 25. From My DEP Account, you can:
  26. 26. See your water use
  27. 27. Pay your bill
  28. 28. Get a 2% discount by signing up for direct debit
  29. 29. Sign up for paperless billing
  30. 30. And just added: leak notification email alerts
  31. 31. Go to www.nyc.gov/dep and click on the blue My DEP Account button to sign up
  32. 32. Even if you don’t have a wireless water meter and can’t see your water use just yet, you can still register to pay your bill online </li></li></ul><li>13<br />Customer Initiatives: My DEP Account<br />My DEP Account gives you access to all the tools you need to effectively manage your account<br />
  33. 33. 14<br />Customer Initiatives: Wireless Meter Reading<br /><ul><li>By registering at My DEP Account, you can see your water use daily, weekly, or monthly </li></li></ul><li>15<br />Customer Initiatives: Paperless Billing<br /><ul><li>DEP is now offering its customers the opportunity to receive their quarterly bills electronically instead of by mail
  34. 34. If you sign up, you will no longer receive a paper bill in the mail. Instead, you’ll receive an email when your next bill is due.
  35. 35. Then, you can login to My DEP Account to view your bill and pay online. You can even print the bill if you want a copyforyour records.
  36. 36. Going paperless saves paper and money. It’s the environmentally friendly way to receive your water bill.</li></li></ul><li>16<br />Customer Initiatives: Direct Debit Discount<br /><ul><li>Did you know that you can get a 2% discount on you water bill?
  37. 37. To take advantage of this offer, customers should first register at My DEP Account and create an online payment profile
  38. 38. To receive the 2% discount, you must set up your account to automatically pay your bill in full within 5 days of the bill being issued
  39. 39. The 2% discount will appear as a credit on your NEXT bill. It will not appear on the first bill you receive after registering for the discount
  40. 40. This discount is currently available for all bills issued through June 30, 2011</li></li></ul><li>17<br />Leak Notification<br /><ul><li>DEP recently introduced leak notification
  41. 41. Available for 1-3 family homes with wireless meter reading devices installed
  42. 42. Customers sign up online to receive email notifications when their water use increases significantly over a period of several days
  43. 43. Enables customers to respond quickly to potential leaks and fix them before they become a serious billing problem</li></li></ul><li>Water Conservation Seminars<br /><ul><li>DEP runs a series of three-hour seminars on water conservation, water/sewer billing and the transition to metered billing. The classes are free.
  44. 44. The seminars cover:</li></ul>Basics of water/sewer billing (flat-rate and metered billing) <br />Transition to metered billing <br />How to measure and account for water/sewer costs <br />Toilets, showers, boilers, hot water heaters and other equipment <br />Managing and account for water use <br /><ul><li>Please see the attached presentation for a comprehensive outline of the subjects covered in the seminar
  45. 45. DEP would be happy to schedule a couple of water conservation seminars for REBNY and its members</li></li></ul><li>Enforcement<br /><ul><li>On March 16, 2011 Mayor Bloomberg signed Local Law Intro-26-A which reauthorizes and extends to 2014 the authority to sell liens based on delinquent property taxes or delinquent water and sewer charges
  46. 46. Currently, for single-family properties, DEP’s only enforcement tool are water shut-offs. Which are costly and are a serious drain on our resources.
  47. 47. DEP estimates that it could collect $28.5M in 2011 had the lien sale reauthorization included a provision for single-family homes
  48. 48. DEP recently sent out an RFP to enhance enforcement efforts among single-family homeowners who are delinquent </li></ul>19<br />
  49. 49. 16<br />FY 2012 Rate Proposal Summary<br /><ul><li>Proposing 7.5% rate increase; 35% lower than March 2010 projection
  50. 50. Offering 2% discount for enrolling in paperless billing and direct debit
  51. 51. Create a My DEP Account and register online at www.nyc.gov/dep
  52. 52. Net increase for customers who take advantage of discount is 5.4%</li></li></ul><li>2<br />FY 2011 Highlights<br /><ul><li>Developed and launched 100-point Strategic Plan
  53. 53. Implemented major Customer Service initiatives, including Wireless Meter Reading Online and Leak Notification
  54. 54. Achieved 8% expense reduction of $75M
  55. 55. Reprioritized entire 10-year capital plan to focus on greatest needs, asset management, and state-of-good repair
  56. 56. Unveiled design and timeline to repair leaks in the Delaware Aqueduct
  57. 57. Proposed landmark Green Infrastructure Plan to address combined sewer overflows (CSOs)
  58. 58. Strongly advocated for regulatory reform at the State and Federal levels</li></li></ul><li>Next Steps<br /><ul><li>Schedule water conservation seminars for building managers
  59. 59. Build an online component to reach a larger audience
  60. 60. Create a downloadable conservation package that allows building managers to inform their tenants about the importance of conservation</li></ul>22<br />

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