Troy residents could see the proposed water rate rise 10.1% to $5.43 per 1,000 gallons and the sewer rate rise 7.6% to $4.27 per 1,000 gallons under a city budget that has council members raising pointed questions about where the money from existing utility funds is actually going. The plan would pull nearly $2.5 million out of the water fund to help balance its general fund.
Council Presses Mayor on Rate Hikes
Troy City Council members raised concerns about the proposed increases during discussions on Thursday, according to the Troy Record. Mayor Carmella Mantello defended the hikes, saying they would address rising city costs and fund needed infrastructure upgrades, including investments in sewer cameras, lead-pipe replacements and filtration-plant upgrades, per the same report.
Council member Greg Campbell-Cohen zeroed in on the nearly $2.5 million intra-fund transfer moving from the water fund into the city's general fund, questioning why that money couldn't be used to offset the proposed rate increases instead. He argued that raising rates while simultaneously pulling more money out of the water fund effectively turns the utility fund into something resembling a property tax, the Troy Record reported. Campbell-Cohen also said keeping utility funds separate allows the city to properly assess whether the revenue they generate actually covers the cost of services.
Mayor Defends the Transfer
Mantello responded that the transfer helps build infrastructure and balance the city's budget without resorting to unnecessary cuts or deeper tax hikes. She said the transfer depended on there being a surplus in the water fund to begin with, and noted that other municipalities that sell and provide water use the same practice. Campbell-Cohen, for his part, acknowledged that interfund transfers are not illegal but argued the city should not plan its budget around relying on them.
The city budget cites rising pension and health-insurance costs and proposes a 3.4% property-tax increase.
Infrastructure Spending Behind the Numbers
The rate increases arrive as Troy pursues a series of major infrastructure investments tied to its water system. The city received $15.6 million in federal grants and low-cost financing to upgrade the corrosion-control treatment system and replace the lime-feed system at the John P. Buckley Water Treatment Plant, according to the Troy Record.
Separately, the city secured $12 million in new federal funding to continue replacing lead service lines throughout Troy, according to WRGB/CBS 6 Albany. That outlet reported that identification of lead service lines is 75% complete on the private side and 58% complete on the public side, with the city coordinating replacements alongside roadway projects so lead lines come out before streets are milled and repaved.
A city budget announcement separately described a proposed $0.50 per 1,000 gallon increase in water rates tied specifically to rising orthophosphate treatment costs, which the city says are essential to corrosion control and lead pipe replacement, according to the City of Troy.
A Long-Running Tension Over Utility Funds
Questions over the health of Troy's utility funds are not new. A 2013 review of the city's proposed 2014 budget by the New York State Comptroller found that the sewer fund at the time showed a weakening financial position alongside proposed revenue increases for that fund, though that review concerned a different budget cycle more than a decade ago and should not be read as a direct assessment of the current proposal.
For now, the fight in Troy centers on the tradeoff between keeping property taxes in check and asking water and sewer customers to shoulder more of the cost. Mantello has framed the rate hikes as a way to address rising city costs and infrastructure needs, while Campbell-Cohen's questioning signals that at least some council members want clearer answers on how utility fund transfers factor into that math before signing off on the budget.
