PLUMSTED – Residents remain concerned and upset over a proposed 128% rate increase by the township Municipal Utilities Authority (PMUA).
PMUA customers have circulated a petition that is asking the utilities authority to hold off on the rate increases, hoping they might be some federal grants available that might serve to supplement costs of operation.
The PMUA is collecting about half of what it requires to cover the $1.9 million annual operating cost for its wastewater operation. Veolia North America, which both administered and operated the system, is owed $1.4 million.
The township’s prior PMUA board of commissioners resigned en masse several years ago. They were replaced by a new board and Brian Brach was hired as the interim executive director of the MUA in hopes that he might be able to stabilize the operation.
Customers are calling on the PMUA to charge customers based on their use rather than the current flat fee because they believe it would be a fairer way to cover the cost.
Brach provided a list to The Jackson Times featuring various reasons why this idea wouldn’t work. The primary reason being that fixed rates provide a more stable revenue source.
“The PMUA can confirm that at the current rate of $70/month for wastewater service, and absent any subsidies, that the Authority projects an approximate $1,000,000 deficit on a $1,900,000 budget during Calendar Year 2025 for the wastewater function of the Authority,” Brach added.
He explained that Veolia was under contract for both Administration Services and Operational Services for an approximate two-year period from circa 2021 through October 2023. During this timeframe, the Authority incurred significant expenses, exceeding $1.4M, which remains unpaid and unresolved with Veolia.
Plumsted Township has committed to a $500,000 subsidy in 2025 with a payment schedule. However, the resolution committing to this subsidy did not include a certification of said funding, as the Township has not approved its 2025 budget.
“This commitment shall be considered by the PMUA Board during the 2025 Rate Hearing and may result in a commensurate adjustment to the proposed 2025 sewer rate,” Brach said.
He continued, “the PMUA initially canceled the Rate Hearing scheduled for November 12, 2024. The Authority plans on rescheduling the 2025 Rate Hearing in short order and shall notice said hearing.” No formal action has been taken on trash and/or sewer rates for 2025 as of the time of this article.
To bring revenue in line with expenses for next year, the utilities authority has proposed increasing rates from $70 a month to $160 a month, an increase of 128%. The township is on course to provide a $500,000 subsidy, which would lower the rate to about $120 a month.
Mayor Dominick Cuozzo, whose term ends at the end of this month after losing his bid for re-election, proposed zoning changes to its downtown area opening it up to commercial developers who would bring in much-needed users for the system and expand the customer base.
Residents expressed opposition to that plan expressing this was not the answer and other options should be examined. That zoning ordinance was voted down during a 3-2 voted during December’s Township Committee meeting.
Some officials believe once additional customers are online, rates should stabilize. Twenty years ago, then-Mayor Ron Dancer supported redevelopment efforts within the economically challenged rural community. He advocated for a redevelopment plan that would support existing businesses, and draw in new ones to bolster the business district that often saw a turnover of small businesses on Main Street.
Officials realized the biggest problem for downtown business owners was the need for a modernized sewer system. Most of New Egypt was in a 100-year flood hazard zone near the Crosswicks Creek and many businesses were connected to antiquated septic systems and cesspools.
It was discovered that around 81% of residents were impacted by malfunctions. Many existing buildings in the downtown area were found to have been built before modern health codes and were built on small lots.
Various options were considered including sending wastewater to Joint Base McGuire-Dix-Lakehurst; forming a regional authority with the Burlington County communities of North Hanover and New Hanover townships.
The idea of sending wastewater through Six Flags Great Adventure pump station in Jackson Township was another idea but building its own Surface Water Discharge plant was found to be more viable.
The township borrowed $32 million through the New Jersey Infrastructure Bank for the facility and collection system that could match to the state’s environmental standards. It was projected that the cost to customers would be $210 to operate each quarter.
Plumsted officials opted to pay back the debt with a time span of three decades with a payment in lieu of taxes, or PILOT, on residents moving into the new Lennar development.
It was learned in a 2014 report by Van Cleef Engineering and HDR Hydroqual that a projected sewer rate of $600 annually would place a great burden on Plumsted residents, whose annual household income was around $70,000 at that time.
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