BORDENTOWN TOWNSHIP: Rising Water

Rates to increase by 20 percent

By David Kilby, Special Writer
   BORDENTOWN TOWNSHIP — Water rates are set to rise.
   With the Ocean Spray plant set to close in September 2013 — moving its operations out of Bordentown City and into Pennsylvania, city residents and businesses are not the only ones destined to feel the pinch.
   Bordentown City provides water to Bordentown Township.
   And, as previously reported in the Register-News, the city is increasing its water rate by 20 percent across the board to make up for the approximately $485,000 loss in revenue predicted to impact the city once the beverage plant is no longer using its water utility.
   The township is a customer of Bordentown City’s water utility plant, and considering that Bordentown City used 72,409,000 gallons of water and the township used 88,990,000 this past quarter, Mayor James Lynch, of Bordentown City, said that the township is a big customer.
   Mayor Lynch explained the need for a water rate increase to the Bordentown Township Committee at its meeting Monday. Along with the shortfall caused by Ocean Spray leaving the city, issues with keeping the water plant modernized have also been reported as factors resulting in the increase.
   The mayor of Bordentown City said there was a modest increase in 2010, but before that, water rates for Bordentown had not increased since 1991.
   The Ocean Spray plant used 184,381,000 gallons of water and paid $484,688.81 for that water last year, he continued.
   ”As far as we know, right now (the company is) leaving September 2013,” Mayor Lynch said, adding that the chances for another big water user moving in were very slim.
   Mayor Lynch said the city had tried everything its leaders could think of to entice Ocean Spray Cranberries Inc. to stay.
   The plant, located on East Park Street, has been part of the Bordentown City community since 1943. The 500,000 square foot manufacturing and warehouse space is one of seven plants which Ocean Spray, a Massachusetts based company, uses for bottling its products.
   In 2011, Ocean Spray Cranberries Inc. announced its intention to shut down its Bordentown City operations and relocate it to a new 315,000 square foot facility in Upper Macungie Township, Pennsylvania.
   As previously reported, with Ocean Spray leaving, and with the costs needed to keep the water plant up-to-date substantial, the city will no longer be able to provide folks with water at the low rates now in place.
   ”The plant needs constant modernization for what we want to do,” Mayor Lynch said. “It’s an old plant.”
   He said there’s a leak in the plant causing it to lose up to 700,000 gallons a day, and that leak is slated to cost $600,000 to repair.
   He said Bordentown City has the lowest water rates in the area, and still will after the upcoming increase. The overall rate is set to increase to $2.80 per gallon from $2.40 and would come into effect in February 2013.
   ”We have the lowest rate, if I’m not mistaken, in the state of New Jersey,” Mayor Lynch said. “We’re going to go from $2.40 per 1,000 gallons to $2.80. That’s a 20 percent increase. There’s no getting around that.”
   In 2009, Hamilton paid $4.12 per 1,000 gallons; Florence $4.50; Chesterfield $4.12, Mansfield $5.38; Yardville $4.12; Burlington City $5.40; Burlington Township $5.38; East Windsor, $4.12; Mt. Holly, $4.62; Trenton $3.27; and Willingboro paid $3.50.
   Fieldsboro buys in bulk from Bordentown City, and has its own meters and sends out its own water bills. Last year it paid the water utility $33,307 and used 14,431,000 gallons of water. Its increase translates to $7,793 a year, Mayor Lynch said.
   The average homeowner in the Bordentown area uses about 56,000 gallons of water per year, or 14,000 gallons per quarter.
   ”The increase for that homeowner, in real dollars, will be $12.58 a quarter,” or $50.32 per year, Mayor Lynch said.
   Bordentown Township Deputy Mayor Michael Dauber mentioned that the city is allowed to use its surplus to help pay for city operations.
   Mayor Lynch said the city has been doing this, but shouldn’t do it anymore. In the 2010-11 budget, it used $844,000 of its $2.997 million surplus; and in 2011-12 it used $962,000 of its $2.162 million surplus to help balance the budget.
   ”Those years are years you didn’t see a tax increase. At the end of 2013, you’re only going to see $1.3 million in surplus,” Mayor Lynch said, adding that the city has subsequently lost its AAA bond rating.
   Committeeman John Moynihan asked if Bordentown City has looked into selling water to an outside entity.
   Mayor Lynch said the city has, and mentioned the restraints. He said the amount of water the utility pumps out is governed by the state. “It’s not an endless well.”
   Also, “It’s a very lengthy process to get (the Department of Environmental Protection) to approve (selling water to another entity),” he added.
   The city’s wells are actually in Hamilton, and Bordentown pays taxes on the land used for the wells.
   The plant has the capacity to pump out 3 million gallons a day, and can be built out to a capacity of 4.5 million. It is now at 1.7 million.
   In the end Mayor Lynch expressed an optimistic attitude about the situation. He said, in fact, if the Bordentown Community Waterfront project gets underway, the shortfall from Ocean Spray leaving would dissipate in a few years.
   ”We’re looking at this as an opportunity,” the Bordentown City mayor said. “We gotta move forward.”