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[quote="Guest"][quote="Cranbury Township"] The 2009 sewer operating budget is $961,087. Approximately 80% of this is for fixed costs including the Middlesex County Utility Authority (MCUA), the Monroe Township Utility Authority (MTUA) and South Brunswick Township. The MCUA handles the treatment and disposal of Cranbury’s sewer system. The MTUA provides the maintenance of the sewer system. South Brunswick Township allows Cranbury’s sewer to flow through their pump station on the way to the MCUA. [b]These are not costs which can be eliminated or negotiated. [/b] [/quote] Why can't we negotiate with Monroe or SB? Did we even try? [quote="Cranbury Township"]In 2008 the total sewer billings were estimated at $615,410 prior to billing adjustments. With total sewer expenses being $1,395,408 the Township has a shortage. This shortfall must be corrected by increasing the sewer rates.[/quote] Convenient, that they make no mention of lowering the sewer costs once last year's short fall is recovered. There is yet again no long term planning by the Town. They yet again look at residents as though we have plenty of cash on hand and can cover any increase in cost.[/quote]
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Posted: Sat, Aug 29 2009, 10:33 am EDT
Post subject: Re: Information about The Change in Sewer Rates has been posted
Cranbury Township wrote:
The 2009 sewer operating budget is $961,087. Approximately 80% of this is for fixed costs including the Middlesex County Utility Authority (MCUA), the Monroe Township Utility Authority (MTUA) and South Brunswick Township. The MCUA handles the treatment and disposal of Cranbury’s sewer system. The MTUA provides the maintenance of the sewer system. South Brunswick Township allows Cranbury’s sewer to flow through their pump station on the way to the MCUA.
These are not costs which can be eliminated or negotiated.
Why can't we negotiate with Monroe or SB? Did we even try?
Cranbury Township wrote:
In 2008 the total sewer billings were estimated at $615,410 prior to billing adjustments. With total sewer expenses being $1,395,408 the Township has a shortage. This shortfall must be corrected by increasing the sewer rates.
Convenient, that they make no mention of lowering the sewer costs once last year's short fall is recovered. There is yet again no long term planning by the Town. They yet again look at residents as though we have plenty of cash on hand and can cover any increase in cost.
Cranbury Township
Posted: Sat, Aug 29 2009, 7:40 am EDT
Post subject: Information about The Change in Sewer Rates has been posted
The Township Committee is aware of the difficult times that we are all facing in this economy – so why increase sewer rates now? There are several reasons. First, per State statute every year sewer connection fees are to be recalculated. At the same time we also look at the sewer rates.
Second, during the budget process it became apparent that sewer operating expenses were increasing with no decrease in sight. In the past we were able to better meet these expenses with sewer connection fees.
Third, when we refunded our existing sewer bonds, which were in large part due to the South Brunswick sewer settlement years ago, we carefully analyzed the amount of sewer debt service. The ordinances which are affecting our current debt go back as far as 1998. After 10 years of debt payments and the refunding of bonds our current sewer debt still stands at over $7,000,000.
Lastly, in addition to the financial reasons for looking at the sewer rates there are the environmental components such as water conservation and the sustainability of the existing sewer system.
The 2009 sewer operating budget is $961,087. Approximately 80% of this is for fixed costs including the Middlesex County Utility Authority (MCUA), the Monroe Township Utility Authority (MTUA) and South Brunswick Township. The MCUA handles the treatment and disposal of Cranbury’s sewer system. The MTUA provides the maintenance of the sewer system. South Brunswick Township allows Cranbury’s sewer to flow through their pump station on the way to the MCUA. These are not costs which can be eliminated or negotiated.
The good news is that due to the refunding of the bonds the Township’s 2009 sewer debt service is approximately $180,000 less than it would have been. However, the current sewer fixed fee of $68 per year does not come close to covering the $434,321 in yearly sewer debt service.
Now that you understand the sewer expenses it is time to look at the sewer revenues. It is pretty simple – the sewer revenues consist of the yearly billing of residential and commercial properties. In 2008 the total sewer billings were estimated at $615,410 prior to billing adjustments. With total sewer expenses being $1,395,408 the Township has a shortage. This shortfall must be corrected by increasing the sewer rates.
Currently your quarterly sewer bill is made up of a fixed fee and usage charge. The fixed fee should be able to support the cost of sewer debt service. Based on the total sewer units billed and the amount of sewer debt service the Township needs to collect a fixed fee of $225 per year or $56.25 per quarter from each billing unit to accomplish this.
The usage charges then need to cover $874,929 which is the balance of the required revenue. With the total gallons of residential and commercial water used in 2008 being 132,533,000 the Township needs to collect $6.60 per 1,000 gallons of water used in order to collect $874,929.
So what does this mean to the Cranbury sewer user? The average residence uses 69,386 gallons of water per year. With the increased sewer rates the fixed fee per quarter will be $56.25 and the average usage charge will be $114.75. Therefore, the total sewer bill for an average single family resident was $65 per quarter and with the proposed sewer rate increase it will be $171 per quarter.
With a struggling economy the Township Committee sympathizes with the hardship that any increase may cause. However, when you look at the numbers there is no ignoring the fact that a sewer rate increase is necessary.
http://www.cranburytownship.org/sewer_rate_change.html