Department of Environmental Protection Proposes Fiscal Year 2027 Water Rate

 

Proposed Increase of 6% is Lower Than Forecast Thanks to Strong Revenue Collections, Allowing DEP to Offset Increased Operating Costs and Make Critical Infrastructure Investments

New Partnership With New York State Environmental Facilities Corporation to Provide $25 Million to Strengthen and Expand Key Affordability Programs

If Approved, the Cost of Water in New York City Would Remain Well Below the National Average

The New York City Department of Environmental Protection (DEP) on Monday proposed a 6% increase for Fiscal Year 2027 (FY27) water rates during a presentation to the New York City Water Board. The proposed rate is lower than forecast thanks to the agency’s strong revenue collections, allowing DEP to offset increased operating costs and make critical infrastructure investments. In addition, a new partnership with the New York State Environmental Facilities Corporation will provide $25 million over several years to support and expand the Board’s key affordability programs that help customers manage their water and sewer bills. The proposed rate would keep the cost of water well below the national average. If adopted, the increase would adjust the average single‑family customer’s bill by $6 per month. The proposed rate is subject to review and approval by the New York City Water Board. There will be a public hearing in each of the five boroughs in early June during which residents will have the opportunity to provide their input on the proposed rate to members of the Water Board. “Strong billing collections, smart long-term planning, and targeted investments continue to put New York City’s water and wastewater system on solid financial footing,” said DEP Commissioner Lisa F. Garcia. “The proposed FY27 water rate keeps bills well below the national average and ensures DEP can keep building the resilient infrastructure needed to safeguard New Yorkers’ drinking water and protect our neighborhoods. The expanded affordability programs and support will provide assistance to customers experiencing financial challenges.” Revenue DEP continues to use every tool in the toolbox to drive compassionate and fair collections, and ensure every customer pays their fair share. Every dollar collected is reinvested into the system to provide rate relief and support day‑to‑day operations. Strong collections have helped lower the projected FY27 rate from the original 7% forecast. In FY26 to date, annual revenue collections have reached $4.1 billion, or $166 million above plan as of May 7. The ongoing forecast also includes approximately $100 million in new, recurring revenue driven by improved collections. Additionally, DEP’s newly formed Key Accounts Group brought in over $10 million in revenue by matching complex customer accounts with more experienced customer service staff members. DEP continues to focus its collections efforts on unlocking payments and resolving disputes with large debtors. Capital Investments Large‑scale capital investments funded by the proposed increase include more than $1 billion in upgrades to upstate reservoirs, $521 million for ongoing construction of City Water Tunnel No. 3, $620 million for combined sewer overflow retention tanks for the Gowanus Canal, $2 billion for bluebelts and green infrastructure, and another $2 billion to continue the comprehensive drainage system buildout in Southeast Queens. DEP is targeting to exceed $3 billion of capital commitments this year as part of a ten-year $33.5 billion capital program. Recent DEP capital investments include: $108 million to upgrade and replace more than 6,700 catch basins to improve sewer performance citywide and enhance stormwater resiliency $320 million investment in the Bronx’s wastewater treatment infrastructure with new facilities at Hunts Point, improving system efficiency and capacity, as well as neighborhood air quality $50 million to design Brooklyn’s first Bluebelt and install flood protection measures in Prospect Park $146 million, in partnership with other agencies, to alleviate chronic flooding in the Jewel Streets neighborhoods in Brooklyn and Queens $84 million, in partnership with other agencies, to complete a drainage project in Staten Island’s New Dorp Beach neighborhood Rental Payment The City’s financial plans include a forecast for rental payment requests from the water and wastewater system pursuant to the terms of the Water Board’s lease of city water and wastewater infrastructure. The projections include $312 million in FY27 from water rate proceeds. NYC Water Rates are Below the Average of Large U.S. Cities For more than a decade, New York City’s water rates have remained 15-20% below the average of the 30 largest U.S. cities, based on typical single‑family residential usage of 70,000 gallons per year. New York customers currently pay about $1,224 annually, compared to $1,428 in Boston, $1,623 in Philadelphia, $2,373 in Washington, D.C., $2,476 in Baltimore, and $3,251 in San Francisco.

Source: Amawalk Consulting Group, charges for all cities reflect rate schedules in effect on February 1, 2026. What the Proposed Rate Would Mean for an Average Customer If the proposed 6% water rate increase is adopted by the Board, customers would see the following changes to their bills: A typical single-family homeowner will see their total annual water and sewer bills increase from $1,224/year to $1,297/year for water and sewer bills — an increase of $6/month (based on an average consumption of 70,000 gallons of water per year). A typical multi-family unit with metered billing will see their total annual water and sewer bills increase from $909/year/unit to $964/year/unit—an increase of $5/month (based on an average consumption of 52,000 gallons of water per year). Keeping Our Water Affordable DEP’s world-class drinking water remains one of New York City’s best bargains, and the agency is committed to maintaining a rate and billing structure that keeps costs reasonable for customers facing affordability challenges. In FY26, DEP’s affordability programs touch nearly one-third of New York City’s 3.38 million households. Today, DEP’s two core affordability benefits were expanded for the second time in FY26, via a vote by the Water Board and thanks to funding provided by the New York State Environmental Facilities Corporation: Home Water Assistance Program: Credit increased by nearly 35%, from $145 in FY25 to up to $196 in FY26, to benefit approximately 68,000 low-income households. DEP proposes continuing this benefit in FY27, which would result in a FY27 effective rate increase of 4.5%, below the proposed 6% increase. All eligible accounts will receive the benefit. Multifamily Water Assistance Program: The program continues to offer a $250 credit and expands the recipient pool to 75,000 affordable residential units starting in FY26 and proposed to continue in FY27. This credit would represent an approximate 18–26% savings on the FY27 annual bill. DEP is also proposing to start two new assistance programs for affordable housing and lower-income customers: DEP will use $1 million in funding from the New York State Environmental Facilities Corporation to help Housing Development Fund Corporation customers return to good standing after falling behind on their bills. DEP will also offer new reduced interest rate payment agreements to lower-income customers prequalified by Department of Finance, and help seniors stay in their homes through low-interest debt deferral. DEP also recommends the reauthorization of the Multi-family Conservation program, which guarantees a full-year per apartment unit rate for buildings with meters and water efficiency fixtures, and the Leak Forgiveness program, which provides financial relief to customers who experience a spike in their water bill due to a leak. DEP is also proposing to once again freeze the minimum water charge so that customers who use a low volume of water will see their bill remain the same. Improving Customer Service DEP is also further revising programs to reduce the financial burden of unexpectedly high bills. These efforts include: Expanding eligibility for Leak Forgiveness and related financial relief. Providing additional forgiveness for customers who experience leaks during periods of estimated billing. Establishing a new minimum benefit for customers with eligible leaks. Proactively capping exceptionally high residential bills that are outside a customer’s control. Increasing outreach to customers who may be eligible for existing assistance programs. And, DEP is streamlining customer service and compliance by: Allowing plumbers to return meter permits electronically and introducing new procedures to reduce warning notices and plumbing violations. Automatically renewing cooling‑tower discounts for customers who remain current with Department of Buildings and Department of Health registrations. Rate Hearings The Water Board is responsible for considering and adopting water and wastewater rates following the proposal and subsequent public hearings. The Water Board will be holding in-person public hearings in each of the five boroughs on the proposed rates: Monday, June 1 at 6:00pm: Queens (JFK Jr. School, 57-12 94th Street Tuesday, June 2 at 11:00am: Manhattan (NYC OMB, 225 Greenwich Street, 8th Floor) Tuesday, June 2 at 6:00pm: Brooklyn (Saint Francis College, 179 Livingston Street) Wednesday, June 3 at 6:00pm: Staten Island (Bernikow JCC, 1466 Manor Road) Thursday, June 4 at 6:00pm: Bronx (Mercy University, 1200 Waters Place) The public is welcome to submit written testimony or comments to the Water Board by email at nycwaterboard@dep.nyc.gov, or by mail to NYC Water Board, 59-17 Junction Boulevard, 8th Floor, Flushing, NY 11373. Following the public hearings, the Water Board is scheduled to meet on June 10, 2026, at 8:30 a.m. to consider and adopt an FY27 budget and water and wastewater rates; the new rates would become effective on July 1, 2026. About the NYC Department of Environmental Protection DEP manages New York City’s water supply, providing approximately 1 billion gallons of high-quality drinking water each day to nearly 10 million residents, including 8.3 million in New York City. The water is delivered from a watershed that extends more than 125 miles from the city, comprising 19 reservoirs and three controlled lakes. Approximately 7,000 miles of water mains, tunnels and aqueducts bring water to homes and businesses throughout the five boroughs, and 7,500 miles of sewer lines and 96 pump stations take wastewater to 14 in-city treatment plants. DEP also protects the health and safety of New Yorkers by enforcing the Air and Noise Codes and asbestos rules. For more information, visit nyc.gov/dep, like us on Facebook, or follow us on X and Instagram.