You may have heard Marlboro Mayor Jonathan Hornik’s announcement to dissolve the Marlboro Township Municipal Utilities Authority. We think this action is short-sighted as we believe the MTMUA is Marlboro’s only efficient agency.
Thirty-six months ago, an independent management and efficiency review of the MTMUA said the authority is a well-organized and properly administered water utility, with rates that compare favorably with other water purveyors. The review was commissioned by the Marlboro Township Council, whose members accepted the findings.
This review included interviews with personnel, an inspection of facilities and an analysis of records. It showed that “varied and complex” field operations are performed in a satisfactory and “highly efficient” manner and called field staffing levels “appropriate and reasonable.”
The 2006 report praised the MTMUA for its “experienced management team” and “entrepreneurial culture with regard to its business management,” recognizing its business approach as being beneficial to ratepayers by identifying new revenue streams and pursuing rate stabilization policies, like the new MTMUA photovoltaic energy system, which provides 1,300,000-plus kilowatt hours of electricity annually and saves $500,000.
In contrast, the recent township dissolution “feasibility study” was performed by township-funded professionals who did no real groundwork. No interviews were sought nor site visits conducted. Instead, these “evaluators” relied on an examination of documentation. Why would the mayor pursue such a harmful course? Follow the money!
If the MTMUA dissolution occurs, township professionals have informed the Local Finance Board they will pay themselves $125,000 for issuing new bonds to replace existing bonds to finance the dissolution. The transaction will cost ratepayers $1 million.
Despite the mayor’s promises of “cost savings through consolidation” and “elimination of all government waste and unnecessary spending,” the dissolution of the MTMUA would only result in a payday for his lawyers, engineers and auditors.
If the mayor wants efficiency and savings, why does he have the deals enjoyed by our township Business Administrator Alayne Shepler and CFO Ulrich Steinberg?
Ms. Shepler collects a $54,000 annual pension and an annual Marlboro salary of $125,000, using her company “Alayne Shepler, LLC” to circumvent the system.
Mr. Steinberg shows up for work three days a week and earns $93,000, allowing him to also serve as part-time CFO for the borough of Florham Park for another $73,000 salary. Mr. Steinberg holds three more public jobs, bringing his total taxpayer-funded pensionable salary for 2008 to nearly $174,000 (source: Data Universe).
Marlboro taxpayers pay for all the Steinberg family health and dental insurances and reimburse him for expenses, while giving him 41 paid leave days annually.
Meanwhile, the mayor’s team wants more than $4 million from ratepayers to plug holes
in the municipal budget. After taking reserves and firing experienced personnel, they claim township employees will perform all utility functions.
What else would MTMUA ratepayers get? Higher salaried municipal employees. Plus, the township could raise water rates to any level to subsidize general government services. Look what happened when other municipalities did the same thing (quarterly charges for a customer using 29,000 gallons):
• $193.75 – water bill under New Jersey American Water Company/Howell rates.
• $204.02 – water bill in Aberdeen. • $205.60 – water bill in Matawan.
• $106.75 – water bill under MTMUA.
The dissolution of the agency would be a disaster for Marlboro as no agency has been managed more efficiently than the MTMUA:
• One of the lowest rate structures in Monmouth County.
• Cost-effective professional services, with current engineering rates 38 percent lower than what the township pays.
• The MTMUA reduced its administrative staff by 10 percent in 2007, two years before dire economic circumstances forced the township to reduce.
• In 2005 the MTMUA consolidated administrative functions, legal services and some financial duties under the title “Executive Counsel,” saving tens of thousands of dollars annually.
• Restructured personnel and services in 2005 which translated into a 37 percent aggregate reduction in administration expenses.
• Contrary to township claims, MTMUA commissioners never received paid benefits and the executive counsel is not paid $200,000, actually receiving less than the township business administrator takes through her pension and salary.
For 47 years, the MTMUA has provided exemplary utility service at cost-effective rates. The mayor and his supporters have launched this 11th-hour dissolution plan without any public input on its impact on ratepayers. It is time to put a stop to his proposal.
Michael Messinger, Henry J. Williams, JoAnn Denton, Richard Previte and Jack Zatz are the appointed commissioners of the Marlboro Township Municipal Utilities Authority.