Afew months ago, the Old Bridge Municipal Utilities Authority (OBMUA) approved rate changes for its water division. Included was a 20 percent reduction in the basic water allotment from 10,000 to 8,000 gallons per quarter, with the same fee as existed for the prior 10,000- gallon allotment. For the customer who uses 10,000 gallons, this amounts to a 9.1 percent increase. At a 15,000-gallon and 20,000- gallon consumption, the new rates are respectively 1.074 and 1.062 times the old ones.
In the audit report for year ended May 31, 2010, there is a line item indicating that $1,312,157 had been transferred to the township in the same period that the above changes were instituted. I also recall that money had also been transferred to the township in prior years. Had this not been done, perhaps there would have been no rate increases and maybe there would have even been a rate reduction.
This transfer of substantial funds from the OBMUA to the township is effectively a disproportional tax borne by OBMUA customers who avail themselves of both sewer and water or sewer or water separately, and a tax subsidy to those who use neither, in that these funds were used to help balance the municipal budget.
Is the OBMUA becoming a “cash cow,” serving as a second reserve account for municipal use and enabling the Township Council and administration to claim no or a nominal increase in the municipal rate?
Robert F. Lewicki Sr.
Old Bridge