Olivo: No Projected Water Rate Increase

Garden City residents may not see an increase in their water rate this year if a settlement comes through from a contamination case regarding affected wells at the Garden City Country Club.

"It's been in negotiation for years and is near conclusion," village auditor Jim Olivo said of the Genesco case, which involves a superfund site on Fulton Avenue in Garden City Park, the former location of a cutting mill and dry cleaning facility. The Nassau County Department of Health and the Garden City Water District are managing the site contamination, which is migrating into Garden City's wells, according to the EPA.

To "keep in line with the increasing costs to provide the water," Olivo said the rate is raised every other year, by approximately 5 percent.

Between 2007-2010, however, residents saw a 5 percent increase for four consecutive years. (In 2007, rates increased by 7 percent.)

The rate hikes are primarily due to capital project investments made in adding treatment facilities to the village's system to ensure clean water. On average, the water department spends approximately $400,000 a year on chemicals such as caustic soda and chlorine and costs are going up this year, according to Frank Koch, Garden City's superintendent of water and sewer.

Nearby villages like Rockville Centre and Hempstead have lower rates when compared to Garden City's. "When it comes to villages we're right in the middle ... When it comes to the districts, we're in line," Koch said.

"Districts are tax supported," Olivo added. "They're not like this is run. This is an enterprise revenue fund. This is a business approach to our fund."

The village's water budget is funded solely by revenue derived by its consumers, not from general village taxes. Residents are billed on a quarterly basis and charged based on actual consumption.

During recent budget talks, trustee Andrew Cavanaugh said the Genesco case settlement could help finance a major project like the water tank rehabilitation/renovation/replacement. "We may avoid a very large capital expense," he said.