BTMUA commissioner explains lower bulk water rates

Letters that appeared in your newspaper and others by writers Ross W. Smith and Arthur Sholty, both of Brick, criticizing Brick Township Municipal Utilities Authority commissioners who voted to lower bulk water rates to neighboring communities demands a response. Mr. Smith states that those commissioners should think about resigning because, as he puts it, "They are not working for or helping the taxpayers in Brick," and Mr. Sholty refers to the reduction as a "giveaway." It is evident that both individuals either are not aware of or perhaps choose to ignore the facts. As a BTMUA commissioner who voted in favor of the lower bulk water rate, allow me to present the following argument.

• The BTMUA has agreements to sell water to Point Pleasant Beach, Point Pleasant Borough and Lakewood. The sale of water to customers outside of Brick is one the reasons Brick residents enjoy lower water rates than many of its neighbors because that outside income helps defray some of the expenses associated with treating and distributing the water. Legislative changes now allow private water companies such as New Jersey American, a foreign-owned company, to also sell water at bulk rates. This means that New Jersey American is a competitor who could attract our bulk rate customers by offering to sell them water at a lower cost. Faced with this competition, the BTMUA needed to reconsider its bulk rate or risk losing its outside customers along with a significant amount of revenue.

• According to the BTMUA’s director of finances, bulk water sales revenues for this year are projected at nearly $1.25 million. If we lost these bulk water customers to another supplier, that drop in revenue would need to be made up entirely by Brick customers, requiring a rate increase of about $7.58 per quarter for an average single-family residence using 15,000 gallons. In contrast, lowering the bulk water rate results in a projected much lower $1.40 increase to the average residential user to make up for the lost revenue. The better alternative for Brick residents should be more than obvious.

• The BTMUA is responsible for the production, treatment and distribution of the highest quality water. With the consent of the Brick Township governing body, adding bulk rate customers to share the costs so that rates to all BTMUA customers can be kept as low as possible is an important component of our financial business model. That also means we should do whatever is necessary to retain our current bulk water customers. With the reservoir on line, there is sufficient water to supply not only Brick and its current customers, but additional future customers as well. That abundance should be taken advantage of for the benefit of all. More customers will provide a greater revenue stream and overall lower costs to ratepayers, particularly those residing in Brick.

While there may be those who disagree, it is my opinion that commissioners who approved the change acted prudently and in the best interest of Brick Township. Those who remain unconvinced are welcome to visit the BTMUA offices to discuss the issue further or review the data offered by the BTMUA’s financial director so that their judgment may be made on facts rather than emotional speculation.

Sal Petoia

Commissioner

Brick Township Municipal

Utilities Authority