Jump to: Revenue Overview · Bond Debt History · Debt Service Schedule · Capital Projects · Developer Contributions · 2026 Budget · 1,4-Dioxane Surcharge · Get These Documents
About This Page
This page presents financial data from the South Huntington Water District’s audited financial reports. The purpose is to give ratepayers and community members access to the same information that appears in the district’s official records — presented clearly and in one place.
All figures are from audited sources. Where calculations are made (such as per-ratepayer estimates), the methodology is shown.
Revenue Overview
The South Huntington Water District operates on three primary revenue streams. In 2024, the breakdown was as follows:
| Revenue Source | 2024 Amount | % of Total |
| Water Charges (rates) | $5,870,000 | 49% |
| Property Tax Levy | $4,590,002 | 38% |
| 1,4-Dioxane Surcharge | $1,680,000 | 14% |
| Total (approx.) | $12,140,002 | 100% |
Source: SHWD 2024 Audited Financial Statements
Nearly half of SHWD’s revenue comes from direct water charges. But property taxes — levied on every taxable parcel in the district — contribute 38% of the total. Residents who own property pay for SHWD operations whether they use municipal water or not.
$12.14M — Estimated Total SHWD Revenue — 2024
Water Charges
Water charges are set by the Board of Commissioners and billed directly to water accounts. The average residential account pays approximately $202/year; the average commercial account pays approximately $923/year. (Source: Newsday)
Property Tax Levy
The property tax levy is the district’s primary mechanism for funding debt service — the principal and interest payments on outstanding bonds. In 2024, the levy was $4,590,002, which translates to approximately $255 per ratepayer household when divided across the district’s estimated 18,000 accounts.
1,4-Dioxane Surcharge
Introduced in 2021, the surcharge is billed quarterly at $25/quarter ($100/year per ratepayer). It was created specifically to fund the construction and operation of 1,4-dioxane treatment systems. In 2024, surcharge revenue totaled approximately $1.68 million. This revenue stream is dedicated to contamination remediation and is expected to remain in place for the foreseeable future.
Bond Debt History
SHWD finances capital infrastructure through municipal bond issuances. The district’s outstanding bond debt has grown substantially over the past seven years:
| Year | Outstanding Bond Debt | Notes |
| 2017 | $16,800,000 | Per SHWD 2017 Audited Financial Report |
| 2024 | $26,300,000 | Per SHWD 2024 Audited Financial Statements |
| Net Change | +$9,500,000 | +57% over 7 years |
New bonds issued in 2024 alone totaled $4,580,000.
Bond interest rates on current obligations range from 2.0% to 5.0%, with maturities extending through 2038.
In 2017, SHWD refunded (refinanced) a portion of its bond debt, generating savings of $181,523 in interest costs. This kind of refinancing can reduce long-term burden but does not reduce the principal obligation.
SHWD cannot issue bonds independently. Every bond the district issues must be authorized by the Huntington Town Board. This means Town Board decisions about bond authorization directly affect future ratepayer obligations.
$16.8M → $26.3M — Bond Debt 2017–2024 — +57% in 7 Years
$4.58M — New Bonds Issued — 2024 Alone
The Bonding Constraint
Unlike many local government entities, the South Huntington Water District does not have independent bonding authority. Bond issuances require authorization by the Huntington Town Board. This is a significant governance relationship: the same body that approves development applications also controls the district’s ability to borrow money for infrastructure.
Town Board member Dave Bennardo described the dynamic to Newsday: “There’s no mathematical way to keep up with the cleaning that the water needs unless you bond. You can’t pass that cost on to ratepayers all at once.”
Debt Service Schedule (2025–2038)
| Year | Estimated Annual Debt Service |
| 2025 | ~$3,400,000 |
| 2026 | ~$3,400,000 |
| 2027 | ~$3,200,000 |
| 2028 | ~$3,000,000 |
| 2029 | ~$2,800,000 |
| 2030 | ~$2,600,000 |
| 2031 | ~$2,400,000 |
| 2032 | ~$2,200,000 |
| 2033 | ~$2,000,000 |
| 2034 | ~$1,800,000 |
| 2035 | ~$1,600,000 |
| 2036 | ~$1,400,000 |
| 2037 | ~$1,200,000 |
| 2038 | ~$1,000,000 |
| Total Through 2038 | ~$32,700,000 |
(Source: SHWD 2024 Audited Financial Statements. Annual figures are estimates based on disclosed total remaining debt service of $32.7M; exact per-year figures may vary. Obtain the full audited report for precise breakdowns.)
The total remaining debt service through 2038 is $32.7 million. This is the amount that SHWD ratepayers are obligated to pay — in property taxes — on bonds already issued. Additional capital projects and new bonds will add to this total.
$32.7M — Total Remaining Debt Service — Through 2038
~$3.4M — Annual Debt Service (current) — Paid Through Property Taxes
Capital Projects — Committed Pipeline
The district has committed to approximately $17 million in capital investment over the next five years. These projects address two primary drivers: 1,4-dioxane contamination remediation and aging infrastructure replacement.
| Project | Estimated Cost | Primary Purpose |
| Treatment Plant 10 | $7,950,000 | 1,4-Dioxane treatment system |
| Plant 3 Rehabilitation | $6,070,000 | Infrastructure renewal |
| Plant 4 & Plant 8 Rehabilitation | $5,660,000 | Infrastructure renewal |
| Plant 12 Storage Tank | | | $2,690,000 | Storage/distribution capacity |
| 5-Year Pipeline Total | ~$17,000,000+ |
(Source: SHWD 2024 Audited Financial Statements)
These projects are largely driven by regulatory requirements (1,4-dioxane compliance) and the age of existing infrastructure — not solely by new development. However, new large-scale development approved during this period would add demand that may require additional capital investment beyond the committed pipeline.
~$17M — Capital Projects Committed — Next 5 Years
Treatment Plant 10
At $7.95 million, Treatment Plant 10 is the largest individual capital commitment in the current pipeline. It is being built specifically to address 1,4-dioxane contamination — a probable carcinogen found in SHWD’s groundwater supply.
The district’s wells have been rated highly susceptible to contamination. 1,4-dioxane is an industrial compound — a byproduct of manufacturing processes — that has migrated into the groundwater that feeds SHWD’s wells. Its presence is not caused by the district or its ratepayers; its remediation cost is nonetheless borne by them.
SHWD is one of three Long Island water districts involved in an active class action lawsuit against 1,4-dioxane manufacturers. The outcome of that litigation could eventually offset some remediation costs — but ongoing treatment cannot wait for litigation to resolve.
Developer Contributions vs. Ratepayer Burden
A central question for any growing community is how development-driven infrastructure costs are allocated between developers and existing ratepayers.
At SHWD, the district collects system construction charges from developers connecting new projects to the water system. These charges represent the developer’s direct financial contribution to SHWD infrastructure.
In 2024, those collections totaled $73,975.
In the same year, SHWD ratepayers funded $3.4 million in debt service through their property taxes.
| Party | 2024 Actual | 2026 Budgeted |
| Developers (system construction charges) | $73,975 | $0 |
| Ratepayers (via property tax debt service) | $3,400,000 | $3,283,375 |
| Ratio | ~46:1 | ∞ : 0 |
(Source: SHWD 2024 Audited Financial Statements; SHWD 2026 Adopted Budget)
Developer system construction charges — the only direct financial contribution developers make to SHWD infrastructure — are budgeted at **$0** in the district’s 2026 Adopted Budget. The district itself projects that developers will contribute nothing to water infrastructure costs in 2026. Meanwhile, ratepayers will fund an estimated $3.28 million in debt service through property taxes that same year.
$73,975 → $0 — Developer Infrastructure Contributions — 2024 Actual → 2026 Budgeted
$3,400,000 — Ratepayer Debt Service — Via Property Taxes, 2024
2026 Budget Snapshot
The SHWD 2026 Adopted Budget provides the most current available picture of the district’s financial trajectory.
| Indicator | 2024 Actual | 2025 Estimate | 2026 Budget |
| Water rate revenue | $5,102,196 | $5,100,000 | $5,400,000 |
| Property tax levy | $4,590,002 | $4,690,000 | $4,800,000 |
| NYS Tax Cap Limit | $4,821,528 | ||
| Headroom under tax cap | $21,528 | ||
| Developer system construction charges | $73,975 | $134,145 | $0 |
| Capital reserve contributions | $1,370,000 | $300,000 | $260,000 |
| Operating surplus / (deficit) | +$1,153,371 | +$2,599,199 | (−$236,658) |
| Contingency reserve | $0 | $0 | $100,000 |
2025 surplus includes a one-time $2.845M legal settlement; not recurring in 2026.
(Source: SHWD 2026 Adopted Budget])
Notable findings:
- Water rates are increasing 5.9% in 2026 — budgeted revenue rises from $5.1M to $5.4M
- Property tax levy is approaching the NYS cap — $4.8M budgeted against a $4,821,528 limit leaves only $21,528 of headroom
- Developer contributions are zeroed out — $0 budgeted for system construction charges from developers
- Capital reserve funding has declined 81% since 2024 — the district is increasingly reliant on bond financing rather than pay-as-you-go capital accumulation
- 2026 is a deficit year — the district draws $236,658 from reserves for the first time in recent years
- A $100,000 contingency reserve appears for the first time — suggesting the district might be anticipating unexpected costs
With property taxes approaching the NYS cap, developer contributions budgeted at zero, and the district entering a deficit posture for the first time, the 2026 budget leaves little financial cushion. Any new development-driven infrastructure need would have to be met primarily through new bond issuances — adding to the $32.7 million in debt service obligations ratepayers are already committed to paying through 2038.
The 1,4-Dioxane Surcharge: Background and Outlook
1,4-Dioxane is classified by the U.S. EPA as a likely human carcinogen. It has been found in groundwater across Long Island as a result of industrial activity and the historical use of certain cleaning and manufacturing compounds.
New York State has set a Maximum Contaminant Level (MCL) for 1,4-dioxane in drinking water of **1 part per billion (ppb)** — one of the strictest standards in the country. SHWD must treat its water to comply with this standard.
**Timeline:**
– Pre-2021: 1,4-dioxane treatment costs absorbed into base rates and capital budget
– 2021: Dedicated per-account surcharge established at $25/quarter
– 2024: Surcharge generated $1.68M in revenue; Treatment Plant 10 ($7.95M) under development
– Ongoing: Surcharge expected to remain as treatment systems are built and operated
Three Long Island water districts, including SHWD, are participating in a class action lawsuit against manufacturers of 1,4-dioxane. If successful, damages could help offset past and future remediation costs. The timeline and outcome of that litigation are uncertain.
SHWD Commissioner Paul Tonna acknowledged the scope of challenges facing the district: “Water districts across Long Island face many challenges: water quality, water purity, 1,4-dioxane, infrastructure, old mains. It’s a lot to keep up with our capital program, but we have to do it and we are.” (Source: Newsday)
How to Obtain These Documents
he financial data on this page comes from public records. Residents can obtain them directly:
SHWD — Audited Financial Statements
– Phone: 631-427-8190
– Email: info@shwd.org
– Address: 75 Fifth Avenue South, Huntington Station, NY 11746
– Ask for: “The audited financial statements for [year]”
Freedom of Information Law (FOIL)
If documents are not provided upon request, you have the right to file a formal FOIL request. See the [Take Action → FOIL template](/take-action#foil)
Town of Huntington — Bond Authorization Records
Bond authorization resolutions are public records available through the Town Clerk.
– Town Clerk: Town Hall, 100 Main Street, Huntington, NY 11743
– Online: huntingtonny.gov
Sources: SHWD 2024 Financials, · SHWD 2017 Financials, · SHWD 2026 Budget, · Newsday. All financial figures from audited public records. Per-ratepayer estimates based on 18,000 accounts; actual individual burden varies by assessed value and water use.