Sullivan Fallsburg's Water and Sewer Crisis: Fairness, Accountability, and the Path Forward
Dear Friends and Neighbors
Fallsburg residents are facing a water and sewer crisis that has been decades in the making. Steep rate increases are being proposed, and many families are concerned about the fairness and sustainability of the system. Understanding how we got here—and what must be done—is critical for protecting residents, ensuring responsible growth, and maintaining the town’s infrastructure for the future.
How We Got Here
The roots of this crisis stretch back more than a decade. In 2011, the engineering firm CDM Smith prepared a comprehensive Water and Sewer Rate Study for Fallsburg. This report included detailed cost analyses and a roadmap for gradual, sustainable rate increases to cover maintenance, repairs, and system expansion. Unfortunately, the report was withheld from the public and was not incorporated into the town’s 2018 Comprehensive Plan. As a result, the community was denied the chance to plan responsibly, and the infrastructure continued to age without adequate funding.
Meanwhile, the town has experienced rapid growth, with large homes and high-density developments placing unprecedented demand on its water and sewer systems. Many new residences house far more people than typical households—sometimes six, eight, or even ten residents per home—yet the town continues to rely on outdated calculations based on a standard 300 gallons per day per household. These assumptions do not reflect real usage, leaving the system overburdened and taxpayers shouldering the costs.
The Fairness Problem
A critical issue is how developers are billed. Many multi-home developments are connected to the town’s water and sewer systems through a single master meter, rather than individual meters for each dwelling unit. This practice allows large developments to pay far less than their fair share, effectively subsidizing their water and sewer use at the expense of year-round residents. Meanwhile, single-family homes, assessed based on typical water use, are facing significant rate increases despite using far less water overall.
Fallsburg’s own published rate comparisons with nearby towns—Wurtsboro, Liberty, Monticello, and Tusten—add to the confusion. At first glance, Fallsburg’s rates appear competitive or even lower, but the presentation masks how the system actually functions. The flat fee of $48.25 for up to 15,000 gallons means that small households using 4,000–6,000 gallons per month pay as if they used triple that amount. Larger users, including developments connected by a single meter, pay proportionally far less per gallon.
Compounding this, the way Equivalent Dwelling Units (EDUs) are calculated for Fallsburg’s consolidated sewer levy is based on an outdated formula established many years ago. These old calculations no longer reflect today’s realities—especially given the large-scale developments built in the last decade, where many homes house eight to twelve people and produce significantly more wastewater than older single-family homes.
Updating the EDU system will be complex, requiring coordination between the town engineer, attorneys, and the water department, but it is essential. Without reform, families using less water will continue to bear a heavier financial burden than high-occupancy developments. Fairness and accuracy must guide the creation of new standards that reflect genuine water and sewer usage.
Current water and sewer connection fees are also far too low. Sewer hookup fees, for example, are often calculated at $2.81 per gallon per day—a figure based on a small, standard household. In reality, many new homes have high occupancy rates and use far more water and produce more wastewater, meaning the actual cost of connecting them to the system is much higher than current fees reflect.
What Must Be Done
To correct these inequities and prevent residents from subsidizing new development, Fallsburg must take immediate, responsible action:
Require individual water and sewer meters for every dwelling unit. Each home should pay based on its actual consumption, not as part of a master meter that underreports usage.
Restructure connection and development fees. Fees must reflect actual water usage and household occupancy, including tiered rates for larger homes. Hookup fees should also be higher for properties outside existing water and sewer districts to reflect the true cost of connecting them.
Implement impact fees for all new development. Developers should contribute fairly to roads, schools, parks, and water/sewer infrastructure, just as other towns in New York do.
Establish mandatory capital escrow accounts. Developers should fund future repairs and system upgrades before construction begins.
Enforce compliance with fines and penalties. Work should not proceed without proper permits, and violations must carry meaningful consequences that deter further rule-breaking.
The Path Forward
By implementing these measures, Fallsburg can protect existing residents, create a fair system where growth pays its own way, and ensure that water and sewer infrastructure remains sustainable for the long term. Year-round families will no longer be forced to subsidize large developments that strain the system, and developers will be held accountable for the true cost of growth.
The town has an opportunity to learn from past mistakes. Transparency, accountability, and fairness must guide every decision moving forward. With thoughtful planning and equitable policies, Fallsburg can maintain its character, protect its residents, and manage growth responsibly for decades to come.
There will be an election for Town Board this fall. Several current members will be running for re-election. Fallsburg Future has decided to publish a weekly newsletter highlighting the issues that face the residents and the town. Each newsletter will highlight a particular topic of concern as well as an overview of a particular issue. We have had technical issues with our email service. It has been corrected and you are able to respond to this email.
Fallsburg's Future is a community network of concerned Fallsburg residents established in January 2016. Its Mission is to help guide the urban development of the town of Fallsburg and its five hamlets, to promote its sustainable economic development, protect the fragile beauty of its natural habitats and enhance the opportunities and quality of life for all its residents and visitors. We hope to curb the suburban sprawl that is threatening to overwhelm the town’s physical infrastructure and destroy the natural beauty that the area depends on for its future development. See us on Facebook and our website Fallsburgsfuture.com.