The South Huntington Water District serves approximately 18,000 ratepayers. When the district incurs new costs — whether from infrastructure expansion, bond debt, or contamination remediation — those costs are distributed across that ratepayer base through water rates, a dedicated surcharge, and the property tax levy.
This page explains how those costs flow to individual households, and what the current development pipeline may mean for future bills.
What You Pay Now
A typical South Huntington Water District household pays through three channels:
| Cost | Annual Amount | How It’s Charged |
| Water usage charges | ~$202/year | Metered usage billing |
| 1,4-Dioxane surcharge | ~$100/year ($25/quarter) | Separate line item since 2021 |
| Property tax levy (SHWD portion) | ~$255/year | Suffolk County property tax bill |
| Estimated Total | ~$557/year |
Property tax estimate based on district-wide 2024 levy of $4,590,002 divided by 18,000 ratepayers. Individual amounts vary by assessed value.
(Sources: SHWD 2024 Audited Financial Statements, SHWD 2026 Adopted Budget)
The Bond Debt Trajectory
Bond debt is the most significant long-term cost driver for the district. It is repaid through rates and taxes — meaning ratepayers carry it for decades.
| Year | Outstanding Bond Debt |
| 2017 | $16,800,000 |
| 2024 | $26,300,000 |
| Change | +$9,500,000 (+57%) |
In 2024 alone, the district issued $4,580,000 in new bonds.
Total remaining debt service through 2038: approximately $32,700,000
Average annual debt service: approximately $3,400,000/year
Every year, that $3.4 million comes from ratepayers — through their water bills and property taxes.
(Source: SHWD 2024 Audited Financial Statements)
What Developers Contribute
The district has a mechanism to collect fees from new development to offset the infrastructure costs of connecting new customers. In practice, those fees have fallen far short of the capital investment required.
| Year | Developer System Construction Charges |
| 2024 | $73,975 |
| 2026 Budget | $0 |
The district’s own 2026 adopted budget projects **zero dollars** in developer construction charge revenue — even as the development pipeline includes hundreds of new units.
Over the next five years, the district has committed to approximately **$17,000,000** in capital improvements. Developer fees are not projected to cover a meaningful share of that.
(Sources: SHWD 2024 Audited Financial Statements, SHWD 2026 Adopted Budget)
The Development Pipeline
Several large residential developments are proposed or approved within the district’s service area:
Melville Crossing — 75 Maxess Road
400 residential units. Estimated water demand: 116,000+ gallons per day. Public hearing: March 19, 2026.
→ [Full details on the Melville Crossing page](/melville-crossing)
Gateway South
65 units, ZBA approved. Estimated water demand: ~19,500 gallons per day.
Southgate — 1264–1268 New York Avenue
Town of Huntington Downtown Revitalization Initiative recipient ($2M). Unit count pending final approvals.
The Concord — 1328 New York Avenue
DRI recipient ($1,087,000). Unit count pending final approvals.
Each of these projects will require water service connections, infrastructure upgrades, and ongoing system capacity — costs that flow back to the existing 18,000 ratepayers if developer contributions do not keep pace.
2026: The First Deficit Year
The district’s 2026 adopted budget projects a deficit — the first year in recent history where expenses exceed revenue without drawing from reserves.
Reserve drawdown projected for 2026: $236,658
This means the district is beginning to spend down its financial cushion. Continued capital investment combined with flat or declining developer contributions increases pressure on rates and the tax levy in future years.
(Source: SHWD 2026 Adopted Budget)
The Core Question
The South Huntington Water District is a public utility funded entirely by its ratepayers. When development expands the system, the question of who pays for that expansion — the developers who profit from it, or the existing customers who depend on it — determines whether growth is equitably financed.
The numbers above are drawn from the district’s own audited financial statements and adopted budget. Ratepayers are encouraged to review those documents directly.