When Jersey City formed its Municipal Utilities Authority (JCMUA) in 1998 to manage the struggling city’s water system, it not only collected a one-time profit for the city, but the agreement also called for annual franchise payments to the city.

Those payments have grown from $9 million to $16 million annually now. In addition, water and wastewater rate increases to support a string of revenue bonds have left the independent public authority with roughly $275 million in debt.