Neither Side Budging on Aqua Takeover Debate

A representative from Nassau County Legislator Dave Denenberg's office appeared before the Hempstead Town Board recently and continued to pressure the board to investigate the feasibility of a public takeover of Aqua Water. 

"I'm here to request that you appoint three members to the board," said Kyle Strober, speaking of a now defunct board of the Water Authority of Southeastern Nassau County.  

In order for a study and possible takeover of Aqua to unfold, the Town of Hempstead would need to appoint three members to that board, while the Town of Oyster Bay would appoint two. The town also contends that the county has the authority to pursue a takeover itself.  

The  town and Denenberg agree on the facts: that residents served until Aqua pay astronomically more in water bills (with a possible rate hike on the way) than do people living in neighboring public water districts.  The town board, however, was not budging on its contentions that any takeover of a private water company would lead to the loss of a huge revenue stream for local schools. 

"You can have 800 committees," Town Supervisor Kate Murray said, "but the fact remains that if a municipality were to take over a water authority, it would not pay school taxes."  

The town has cited a study done in the early '90s that it says came to the conclusion that it was cost-prohibitive to go through with a public takeover.

"One of the fundamental issues here is the effect on property taxes and schools taxes in the district," Councilman Anthony Santino said. "There would be a gaping hole in school budgets and those additional revenues would need to come from taxpayers in the district.  There are fundamental problems and disconnects of what this will ultimately cost the residents." 

But details on that early '90s report remain sketchy as the board seemed confused yesterday as to who wrote it and in what form it actually exists today. 

Strober said Denenberg's office had never seen the report so it was unable to address any conclusions it may have come to. 

Both sides continued to cite 2007 studies from the Nassau County Comptroller's office, which acknowledge a significant loss of school revenue when a private water authority is dismantled, but conclude that such a takeover would eventually save residents money. 

Strober said there were ways to combat any school revenue loss and he asked the board, "Are you opposed to investigate?"

At this point, that answer seems pretty clear. 

"It was a glaring question in 1991, the comptroller studied it in 2007 and it hasn't gone away in 2009 and it won't go away going forward," Murray said.  "Where does that education aid come from?"

The debate continues at two upcoming community meetings - Community Meeting to Rally for Water Authority and upcoming Town of Hempstead Board Meeting.