By dave goldberg
Staff Writer
NORTH BRUNSWICK — The established water rate decrease of 15 percent may be dropped even more for some residents.
"Nothing is set in stone as of yet," said Council Vice President Carlo Socio. "We are working on a rate structure. We are going to give at least a 15 percent rate reduction. It may even be more. We are going to give a majority of the people a decrease greater than 15 percent."
There may be a bigger decrease to those who don’t use much water, according to Mayor David Spaulding.
"There will be significant reduction for our lower users of water," Spaulding said. "The majority of the residents will see an 18 percent cut in their water rates. Some of the businesses in town that use extensive amounts of water may see a minimal increase, but all of the residents will be getting a cut. It is an incentive to use less water. The rates will be lower."
In June, the township signed a contract with Azurix North America, allowing them to be North Brunswick’s new water provider. The new contract for water services with Azurix replaces the one signed in 1996 with the U.S. Water Co. The old contract had some distinctions that do not exist in this new contract, according to council President Francis "Mac" Womack.
"That contract was structured prior to the implementation of Internal Revenue Service Revenue Procedure 97-13 that is now enabling the township to enter into long-term operating agreements with private sector firms and still finance improvements to the system on a tax-exempt basis, thus reducing the rates paid by township rate payers," said Womack.
Councilwoman Maureen Little said that not everyone will get the 15 percent decrease.
"People like the seniors will receive a 15 percent decrease, but a large family that uses a lot of water may not get that relief," Little said. "The more water that you use, the less rate relief you will get. The township is also going to give a service charge of $34. This cost will fund new meters."
The council will have a better idea of the decrease next week, according to Socio.
"I am hoping to get a definite number by next week," Socio said on Wednesday.
There will some lower rates for many in town, according to Womack.
"The water rates will be lower for every average consumer," Womack said. "There are people with sprinklers that use the greatest amount of water who may see an increase, but the vast majority of people in town will see a sizable decrease in their water rates."
U.S. Water will continue to provide waste water services, while Azurix will be the water company in North Brunswick, according to Womack.
Socio said that the new contract will give an advantage to the council.
"It will help us to restructure our debt," Socio said. "It gives the council ultimate control over the rates. It is a good contract that will provide a good opportunity for residents. It supplies the customers with a good water rate."
The council will continue try to make reductions where necessary, but it needs to be careful, according to Socio.
"With this contract there is room for the council to continue to make reductions. We will do so," Socio said. "The council has to be responsible though; we can’t lower rate for just the sake of politics. It is something where the council has to be held accountable."
The lower water rates will be a benefit to the community, according to Councilman Adam Weiss.
"For the past five years, the water ratepayers of our community have heard promise after promise that water rate relief would be coming shortly," Weiss said. "Now we have a chance to approve this contract in a bipartisan fashion that would provide real water rate relief to our residents. I am glad we could finally bring this process to a successful conclusion."
The negotiations for a new water contract had been ongoing over the last two years. The Middlesex County Improvement Authority lent its services to the town in finding an appropriate water company to be the town’s provider. Azurix was one of five companies who responded to the water contract and were considered best for the town due to the company’s financial ability and technical expertise.