Sayrevilleofficialswillweigha5percent water rate increase in the coming weeks to address a deficit that has resulted from repeated water main breaks.
At a June 22 meeting of the Borough Council, Chief Financial Officer Wayne Kronowski said the borough had already exceeded the amount budgeted to address the water main breaks in 2015. He said he projects an $800,000 deficit in the water and sewer budget.
“After reviewing the projected budget for next year and also reviewing our experience for the first five months for this year with the water budget, I’m recommending an increase in the water rates to cover what will probably be a projected deficit of approximately $800,000 for next year,” Kronowski said at the meeting.
“We’ve experienced an abnormal rate of water main breaks so far this year. We are now $8,000 over our budget for water main breaks.”
The borough budgeted $475,000 for water main breaks — up from $375,000 in 2014, according to Kronowski. An increase in the cost of treating wastewater from the borough at the Middlesex County Utilities Authority is also a factor in the projected deficit, he said.
In addition, the borough has collected less money from water bills.
“Our revenue received this year versus the same time last year is approximately $187,000 less,” Kronowski said. “We’ve been able to run on a small surplus every year, which we’re able to roll back into our budget, anticipate it as revenue in our budget, and keep our water rate stable since 2010.
“I don’t see that happening going forth.”
Kronowskirecommendeda5percent hike immediately and another in February 2016 to address the projected deficit.
The average water bill in Sayreville is about $23.95 per quarter. A 5 percent hike would increase that bill to about $25.15 and a subsequent 5 percent increase would raise the average quarterly bill to about $26.41. Kronowski compared Sayreville’s rates to other municipalities in the region, stating that the rates are relatively low. In Old Bridge, for example, the average quarterly water bill amounts to $70.20, according to a spokesperson for the Old Bridge Municipal Utilities Authority.
“Even though 5 percent … sounds large, it’s not a lot of money,” Kronowski said. “I don’t think the ratepayer is going to feel it that much.”
Borough Councilman Art Rittenhouse, chairman of the borough’s water and sewer committee, said the department and committee are exploring ways to pare back costs.
“We need to look at the changing environment around water and sewer, and find ways to become more efficient,” Rittenhouse said. He referred questions on specifics to Water and Sewer Department Director Robert Smith, who could not immediately be reached for comment.
According to Kronowski, shoring up the water and sewer fund is an absolute necessity in order to address needed upgrades and repairs to the borough’s infrastructure.
Among the planned projects are upgrades to water mains on Route 9, Camden Street and Washington Road/Main Street.
No immediate action was taken on raising the water rates at the council’s June 22 meeting. The council will meet again on July 6.