Water/sewer rates may rise

Ordinance introduced this week.

By: Sharlee Joy DiMenichi
   Township water and sewer customers may be facing an increase in rates to help offset shrinking revenues.
   The Township Council introduced an ordinance Tuesday that would raise the water rates in 2003 from $1.75 per 1,000 gallons to $1.91 per 1,000 gallons. Water rates would increase to $2.05 per 1,000 gallons in 2004 and $2.21 per 1,000 gallons in 2005.
   Residential sewer customers are charged a flat fee quarterly, which would increase in 2003 from $76.74 to $83.80, then to $89.98 in 2004 and $97.01 in 2005, under the ordinance.
   The 2003 increase will help pay for a $19.091 million water and sewer budget and offset shrinking revenues from sewer hookup fees and a diminishing surplus.
   A public hearing and possible council vote on the rate hike are scheduled for 8 p.m. Feb. 4.
   The rate hikes were recommended by township auditors Ernst and Young in a report in December, who said the township water and sewer surplus was growing smaller. The report said the township would not be able to count on the sewer hookup fees and one-time revenue items it has used over the last few years to keep from raising rates.
   The report said revenue generated by connection fees has been declining because growth has slowed. That means the township must find a way to make up for the reduction in revenue collected from those fees, according to the report. The township collected $817,929 in connection fees in 2001, according to the 2002 budget, down from $1.45 million in 2000. Figures for 2002 and an estimate for 2003 were not available Wednesday.
   In addition, the township anticipates using the final $1 million payment from a $4.465 million settlement of litigation with Cranbury over the amount the neighboring community had been paying for using South Brunswick sewers.
   Overall, the utility raised about $19.8 million in revenue to cover a $19.4 million budget in 2002. It raised $13.698 million in water and sewer fees from ratepayers and about $6.1 million from other sources, including $234,966 on its investments.
   The utility raised $20.5 million to cover a $18.4 million in 2001, with $13.463 million coming from ratepayers and about $7 million coming from other sources, including $613, 295 from investments.
   The utility budget calls for the township to spend $2.6 million 2003 on water from Elizabethtown Water Co., the same as it spent in 2002. The utility spent $2.2 million on water from Elizabethtown in 2001 and $2.185 million in 2000.
   The proposed 2003 budget also includes $706,606 for wages and salaries in 2003. The township paid water and sewer employees $854,916 in 2002 and $776,475 in 2001.