Charles Hack/The Jersey Journal

Hoboken and Jersey City are two of a number of cities who are paying for water infracture repairs while the water company reaps millions in profits, according to a report on NBC Ch. 4 News.

Hoboken Mayor Dawn Zimmer complained in April about its contract with United Water after a serious of water main breaks left sections of a city without water.

Zimmer called the Hoboken contract, approved by a previous administration, "unbelieveably short-sighted." Under the agreement, the city has to pay for almost all infrastructure upgrades, while the water utility receives some $100 million in revenue the over 30 years, NBC reported.

NBC said United Water has similar agreements with Jersey City, Rahway, Camden, Alamuchy and Orange, which leave taxpayers to foot the bill for the lion's share of the upgrades.

According to the report the Jersey City Municipal Utility Authority guarantees United Water $14.5 million a year to operate and maintain the city's water system, while United Water pays just $5,000 for repairs and upgrades.

Daniel Becht, JCMUA president, defended the deal, saying United Water its still cheaper than if Jersey City had to provide the water. Rich Henning, a spokesman for United Water, described the contracts as fair to the municipalities, NBC reported.

Henning also touted an agreement with the Bayonne Municipal Utilities Authority that commits United Water to spending $2.5 million a year on new infrastructure and $150 million up front to retire debt as "a model for future agreements," as municipalities struggle with the cost to of upgrading underground pipes.