New York City’s revenues from water and sewer charges, fines and forfeitures, licenses and permits, interest income, rental income and other “miscellaneous revenues” reached an estimated $6.7 billion in fiscal year (FY) 2025, 11% higher than in FY 2019, and weaker than the 29% growth over the prior six fiscal years, according to a report released today by State Comptroller Thomas P. DiNapoli.

“The pandemic significantly disrupted how New York City generates revenue for items such as construction permits, community college fees and taxi licenses, some of which have yet to return to pre-pandemic levels,” DiNapoli said. “A number of miscellaneous revenues that have recently boosted revenue, including interest income, may soften in the coming years. These shifts warrant further study of the city’s many fines, fees, and charges to understand their impact on revenue stability and resident affordability.”

Miscellaneous revenues include a variety of non-tax funds that fall under two categories: recurring revenues and one-time payments. Major components of recurring revenues include water and sewer charges, fines and forfeitures, charges for services, licenses, permits and franchises, interest income, and rental income. One-time payments include non-recurring items such as asset sales and litigation settlements. Miscellaneous revenues comprised an estimated 8% of revenues from city funds in FY 2025.

Economic Activity Fuels Weakness for Some Revenue Sources

Between FY 2019 and FY 2021, miscellaneous revenues fell by nearly 14% as construction permits, park concessions, taxi licenses, parking meters, vehicle-related violations, and university enrollment were impacted by work-from-home policies, limited travel, and an economic downturn.

In FY 2020, fines and forfeitures collected by the city declined 2.7% from FY 2019. The following year fines and forfeitures declined again, by 4%. Vehicle-related fines contributed significantly to the decline amid social distancing and stay-at-home policies. In FY 2025, the city estimates that fines and forfeitures grew 27% from FY 2019, led by a substantial increase in speed camera fines.

Government charges for services are expected to have raised more than $1.04 billion in FY 2025. These charges include tuition from City University of New York (CUNY) colleges and charges for services rendered by the city to public and governmental agencies. The more than 100 charges include fees for parking and towing, fire and building inspections, and administration (copies of certificates and processing applications). Between FY 2019 and FY 2025, revenues from community colleges that are a part of CUNY declined by nearly 17%, a trend that was precipitated by the COVID-19 pandemic.

Licenses, permits and franchises raised an estimated $730 million in FY 2025. The component includes categories such as taxi licenses, construction permits, restaurants and vendor permits, as well as air quality permits, cable TV franchises, park concessions, and other franchises. Franchises make up the largest share of the category and are expected to be down 4% in FY 2025 compared to FY 2019 as cable television franchises declined due to a change in consumer preferences for internet streaming options.

Permits are estimated to still be down 13% over the period as construction permits drove the decline with the pandemic limiting work on construction sites. Licenses make up the smallest share and were estimated to be down 14% over the period resulting from a drop in taxi licenses due in part to the pandemic limiting travel. Taxi licenses are likely to remain at lower levels, as Local Law 147 of 2018 paused issuance on most For-Hire Vehicle licenses.

Areas of Growth

Water and sewer charges, which make up the largest source of miscellaneous revenues, are estimated to have grown by 50.7% from FY 2019 to FY 2025. During the height of the pandemic, (FY 2019 to FY 2021) water and sewer charges increased by 14.8%. These costs are borne by water and sewer rate payers, including landlords and businesses.

In FY 2019, the City Council authorized the installation of speed cameras in 750 school zones. In 2022, the cameras began operating 24 hours-a-day and in 2024, the city was authorized to lower speed limits to 20 or even 10 mph on designated streets. In FY 2024, the latest available year, the city issued 5.6 million speeding tickets in school zones, up from 4.7 million in FY 2022. In FY 2025, the city expects to receive around $272 million from speed camera fines.

Interest income raised an estimated $628 million in FY 2025. Interest income dropped by over 90% early during the pandemic (FY 2019 to FY 2021) as the Federal Reserve cut the federal funds rate to near zero to stimulate the economy. In FY 2023, interest income experienced significant growth, over 3 times higher than in FY 2021, as the Federal Reserve began raising interest rates to curb high inflation.

Looking Ahead

Several risks on the horizon could impact miscellaneous revenue growth. Construction permit activity remains below pre-pandemic levels, particularly in Manhattan. Permit filings are also taking longer to approve, which may put downward pressure on these revenues. While community college enrollment has increased recently, it may take time before it fully recovers, impacting revenues. Licenses and franchise fees have also been slow to recover and could be hurt by a softening economy. These shifts warrant further study to understand their impact on revenue stability and resident affordability

Report
Miscellaneous Revenues in New York City: What Has Changed?

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