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
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.
Residential properties currently are charged for sewerage based on the value of their home, not on what’s being used. “A utility will make it more equitable,” said Dieter Lerch, the city’s auditor who presented the proposal to City Council last month. Residential properties currently cover about 62 percent of the city’s RVSA bill, according to officials, but are only responsible for 50 percent of the assessment, thus subsidizing commercial and light industrial properties.