Water main replacement

Our landlord has just hit everyone in our building with a 5% rent increase. He claims that part of the reason is the $40,000 he had to pay for a new water main.
(The city is replacing the water mains under the street and the landlord said he had to pay for the pipe into the building). Is this really something he has to pay for, or does the city handle this? And if he pays, is $40,000 a realistic figure?

By greenwood |