Action resuming the request held off until May 8
By:David Koch
The state has postponed action on Bordentown City’s request to change its water utility into a more powerful authority, saying it wants to allow the Bordentown Sewerage Authority time to consider buying the utility instead.
The state Local Finance Board agreed March 13 to postpone until May 8 any action on the city’s request to replace the utility with a new municipal utilities authority, which would have the power to issue bonds for capital projects.
Bordentown City Commissioner and Director of Public Works John Wehrman said the May 8 date is not a firm deadline, but it will give the sewerage authority enough time to consider purchasing the water utility.
"They are going to investigate whether they want to take the (water) utility as part of their municipal authority," said Mr. Wehrman.
At a special joint meeting between the city, the township, and the sewerage authority on March 5, the decision was made to ask for a postponement on the city proposal before the state Local Finance Board and to pass a resolution supporting the purchase of the water utility by the sewerage authority.
Mr. Wehrman also said the City Commission passed a resolution March 11 indicating its interest in the sewerage authority purchasing the city’s water utility. The Bordentown Township Committee passed a similar resolution at its meeting March 11.
"Everybody felt it would be a more formal position with an action from each governing body," said Mr. Wehrman.
The water utility is currently owned by the City of Bordentown and supplies water to residents of Bordentown City, Bordentown Township, and Fieldsboro Borough.
The Bordentown City Commission had passed a resolution in January to seek approval from the state Local Finance Board to change their water utility into an authority, saying a more powerful authority would better serve the growing population. An authority could issue bonds and charge hook-up fees.
Township officials said at the time that they wanted more information from Bordentown City on the proposal because 70 percent of the water utility’s customers are from Bordentown Township.
Based on the township’s request for more information, the Local Finance Board on Feb. 13 granted a one-month adjournment on the proposal.
The idea to sell the water company to the sewerage authority was presented as an alternative to selling it to a private company.
"If it went to a private company, the likelihood is the rates (for water) would rise because they are for profit," said Bordentown Township Deputy Mayor George Chidley.
Mr. Wehrman said there were some advantages to selling the water company to an existing authority.
"If we created our own municipal authority, we would start at day one," said Mr. Wehrman. "They (the sewerage authority) are already financially secure and I guess they want to see if they would take on the water company."
Mr. Chidley said the sale could also benefit residents.
"The residents would have only one agency to pay for water and sewer and they would keep all the records," said Mr. Chidley.
The Bordentown Sewerage Authority currently provides sewage services to Bordentown City and Bordentown Township. It is made of a six-member board of directors with three members from Bordentown Township and three from Bordentown City. The members are chosen by each town’s respective governing bodies. The authority was created in 1986 and is under the jurisdiction of the state Board of Public Utilities.
No members of the sewerage authority’s board of directors were able to be reached for comment.