Re: New York State Revolving Loan Fund

Dear "elected official":

Massive funding gaps are jeopardizing New York’s hard-won water quality gains of the past thirty years. The wastewater and water infrastructure needs of New York State are an ever-increasing burden on local taxpayers. The Association of Towns of the State of New York (AOTSNY), New York Conference of Mayors and Municipal Officials (NYCOM), the New York Water Environment Association (NYWEA) and the New York State Association of Counties (NYSAC) are very concerned about the protection of our environment and the economic impact on local communities in New York. We seek your support for an initiative that promises to address both these concerns.

The Association of Towns of the State of New York was established in 1933 to help towns obtain greater economy and efficiency. The Association serves town governments by providing advocacy in Albany, monitoring legislation and regulatory action, lobbying and presenting initiatives solely on behalf of the towns. The New York Water Environment Association is a 2,100 member organization of water and wastewater professionals dedicated to protecting and enhancing the waters of New York. It is a member association in the international Water Environment Federation. The New York State Conference of Mayors and Municipal Officials is an agency for the cities and villages of New York with the goal of promoting efficient municipal government and supports legislation beneficial to municipal affairs and opposes any legislation harmful to cities and villages and their residents. The New York State Association of Counties represents the interests of more than 4,000 county officials and county employees who deliver essential services to the public.

Wastewater infrastructure built in the 1970’s and 1980’s with 87½ per cent federal and state grants are approaching their design and useful lives and are in need of upgrading and major improvements. Additional funding is also needed to meet more stringent national and state requirements such as stormwater controls and permitting. Similarly, our drinking water infrastructure is in need of upgrading to meet the Safe Drinking Water Act requirements for treatment and filtration. A recent report by the Water Infrastructure Network entitled "Clean Safe Water for the 21st Century", dated April 2000, which can be found at http://www.wef.org/PublicInfo/Newsroom/
PressReleaseArchives/2000/041200.jhtml provides more of a background on this topic from a national perspective.

The State Revolving Loan Fund program currently is providing low cost (low interest) loans to municipalities to ease the financial hardship on local communities. The present 50% subsidy by the state to reduce the interest on project bonds provides some relief; however, increasing the subsidy to 100% (no interest bonds) and increasing the repayment term to thirty years will make many projects more affordable for local communities, It will, in many cases, make the difference between a yes or no decision on promptly implementing needed water and wastewater programs. Our research on this issue concludes sufficient funds are available to implement the increase in loan subsidy without increasing funding to the State Revolving Loan Fund. The following tables indicate savings to local communities at the new subsidy levels. As you can see, the savings are substantial.

NYCOM, NYWEA, NYSAC and AOTSNY believe that implementation of these recommendations will significantly help close the funding gap for the unmet needs for clean water infrastructure in New York. The end result is enhanced ability to protect our most precious natural resource, water.

If you have any questions or comments, please contact us. We are seeking feedback on the importance of this issue and ideas on how we may be of assistance to you.

Sincerely,

cc: Governor Pataki, Commissioner Cahill, DEC, Environmental Facilities Corporation, Chairman, NY Democratic Party, Chairman, NY Republican Party, Municipal Officials

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