The city’s $44.3 million budget for 2007-08 is up $1.2 million from the previous year, almost 3 percent, while the tax levy is up 0.6 percent. In addition to splitting out sewer fees, the city collected more than $2 million in water and sewer connection fees from new development, the city’s taxable assessed value rose $10 million, and $1 million was returned as Rahway’s share of surplus from the sewer authority. The redevelopment plan “is starting to work now, and as projects come on line that $10 million will increase,” said City Administrator/Redevelopment Director Peter Pelissier. A public hearing and final approval of the city budget is scheduled Thursday night at 6:30 p.m. in the Emergency Management Room at City Hall.

The City Council approved the creation of a sewer utility during a special meeting Thursday night. Historically, the Rahway Valley Sewerage Authority bills the city, which acts as a conduit and lumps a town’s assessment into the municipal tax bill. Annual sewer fees for various properties would be as follows, under the new sewer utility:

Single-family home, $245
Two-family home, $392
Three- or four-family home, $392 + $147 per unit
Condominium, $196
Nonprofit/Apartment/Government, $125 + $2.64 per 1,000 gallons
Commercial/industrial, $355 + $3.96 per 1,000 gallons
Industrial/Merck, $355 + $5.28 per 1,000 gallons

The annual sewer fee would not change for at least five years, said Pelissier, the city’s representative to the RVSA, adding that the only costs in creating a utility would be billing, which are expected to be about $50,000 a year. No new positions would be created. City Attorney Louis Rainone described the utility as merely an accounting mechanism.