CRANBURY: Sewer rates on the rise.

[CP]

CRANBURY: Sewer rates on the rise.
Thursday, June 11, 2009 2:02 PM EDT
By Maria Prato-Gaines, Staff Writer

CRANBURY — The Township Committee approved raising the sewer rates in a 4-to-1 vote at Monday’s meeting.

The average single-family residence will see an annual increase of about $424, from $259 in 2008 to $683 in 2009.

The per gallon consumption rate will go up, from $2.75 per 1,000 gallons of water used to $6.60 per 1,000 gallons of water used.

Two parts to that equation are the annual fixed fee, which is increasing from $68 to $225, and the annual usage charge, which will see a jump from $191 to $458.

The decision to increase the sewer rates was a hard but necessary move, Township Committee members said.
The township’s expenses, more specifically its operational costs and debt service, for 2009 were set at $1,395,408 while the total billings prior to adjustments for 2008 were $615,410, leaving a shortfall of $779,998, said Denise Marabello, the township’s finance officer.

”This shortfall must be corrected by increasing sewer costs,” she said.

Ms. Marabello explained to the crowd of approximately 50 residents both the timing and the reasoning behind the increase.

One explanation is that as construction has dropped off, so have the sewer connection fees, funds that the township used to supplement the revenue in years past, she said.

Rising costs from the Middlesex County Utility Authority, which treats and disposes of sewage; the Monroe Township Utility Authority, which provides maintenance for the system; and South Brunswick Township, which helps transport the flow, have also prompted the increase.

Still another factor is the sewer debt, which may be slightly higher than surrounding towns, totaling around $7 million, Ms. Marabello said.

”Most of our debt occurred in the past 10 years, which means our sewer systems are fairly updated,” she said.

Recent efforts to refinance serial bonds, used partially for sewer debt and partially for various capital ordinances, resulted in an approximate savings of $170,000 this year, with the move lowering both the principal and interest on the debt.

This year’s sewer debt service totaled $224,101 in principal and $210,220 in interest. The township will be paying back this debt for the next 20 years at rates that will vary from year to year as is stipulated by a schedule, Ms. Marabello said.

Residents made a number of cost-cutting suggestions at the meeting, some of which committee members said they might consider in the future, for instance, bidding out the maintenance of the system.

However, Ms. Marabello said about 90 percent of the total sewer budget is considered fixed costs.

Some residents scolded the committee, saying the increase was not something they had either expected or prepared for.

”Cranbury has always prided itself as being a pay-as-you-go (town),” said resident Richard Kalen. “I don’t run my house this way. You don’t run your house this way. How did we get to this?”

Committeeman Win Cody, the one member who voted against the increase, voiced his concerns over implementing the charges at such a rapid pace.

”I just don’t think it’s fair,” he said.
Residents should expect to see the increase on their August bills, Ms. Marabello said.

While residents will see an increase, so will commercial users, she said.

Like residents, commercial users will see the increase to $6.60 per 1,000 gallons of water used. However, while each residence is considered one dwelling unit, commercial users are charged by EDU’s, based on flow of water going into the sewer.

One EDU is considered approximately 68,000 gallons of water, she said.

Previously, commercial users were paying about $17 per EDU, but since the vote they will be paying around $56.25 per EDU.

”Their increase will be greater,” Ms. Marabello said. “We are looking at every possible avenue for sewer to collect additional fees from commercial for quality and quantity of flow.”

One silver lining the committee offered residents was that while their sewer bills might be increasing their property taxes could see a decrease.

”Next year we will be able to show more sewer revenue,” Ms. Marabello said. “Therefore, we will have more revenue to offset raising taxes or using additional surplus, offsetting (residents’) property taxes.”

Still, some residents remained skeptical.

”It’s all well and good to hear that property taxes will go down in the future, but you know, I’ll believe it when I see it,” said Greg D’Angelis.

http://www.centraljersey.com/articles/2009/06/11/cranbury_press/news/doc4a31442315264101816318.txt

[Jeff M.]

[publius]

I can see why water could cost more coming INTO your property.................but why do sewer rates increase?

Do sewer pipes wear out faster????????????????????