Tag Archives: water rates

Upgrade likely for aging water treatment plant

Part 1 of 2
Presented with three options to address the city’s aging water treatment plant on Westfield Avenue, the City Council likely will approve a $1.4-million bond ordinance (O-34-13) to cover preliminary costs of upgrading the nearly century-old facility.

Continue reading Upgrade likely for aging water treatment plant

Water study: City could be 2 million gallons short

Rahway can generate six million gallons of water per day but could come up two million gallons short, according to a recent study. The shortage doesn’t mean your faucets are in danger of running dry but it is likely to impact your wallet.

Continue reading Water study: City could be 2 million gallons short

Council OKs water rate, taxi fare hikes

The City Council tonight approved three separate ordinances to raise water rates and taxi fares, as well as a revised downtown redevelopment plan.

The governing body last month introduced the ordinance (O-11-13) to increase water rates as well as the ordinance (O-12-13) to increase taxi fares. Here’s a Google Map that details the taxi zone boundaries (and has more than 1,800 views).

Virtually all three ordinances were approved unanimously, 9-0, with the exception of the redevelopment plan, which had one abstention (Council President Samson Steinman). There was no comment from council members on the three measures:
O-6-13, revised redevelopment plan
O-11-13, water rates
O-12-13, taxi fares

Water rate increase coming

The City Council last week introduced a new ordinance (O-11-13) that will raise water rates by about $20, or about 15 percent, effective April 1. The ordinance will come up for a public hearing and final approval at the March 11 regular meeting.

After the water utility ran a deficit of $170,000 in 2010, water rates were raised last year by about 5 percent last year. The City Council at the time considered a recommendation by the city administrator of increasing rates 5 percent for three consecutive years, but the governing body instead sought to address it on an annual basis.

The ordinance would increase the minimum monthly charge from $11.41 to $13.12, an increase of $1.71, nearly 15 percent. The ordinance stipulates increases of 2 percent annually through 2016. The increase would generate about $487,000 for the remaining eight months of 2013, or $13.68 to the minimum user.

In a Feb. 7 memo to Mayor Rick Proctor, Chief Financial Officer Frank Ruggiero explained that the additional revenue will reduce or eliminate the need for the city budget to supplement water utility operations, enable the utility to again become self-liquidating, and fund upcoming capital improvements.

“This amendment would be in the best interest of the city to have the Water Utility Fund be self-liquidating and not rely on the current fund to supplement the operations,” Ruggiero wrote in his memo to the mayor.

State of the City 2013

Mayor Rick Proctor focused his State of the City remarks last night on regional flood mitigation efforts and the city’s response to Hurricane Sandy while touching on some redevelopment topics. He also warned of a tough budget year, thanks to another water utility deficit that will raise water rates.

Continue reading State of the City 2013

5% water rate hike coming in 2012

Water rates are likely to increase by 5 percent starting Jan. 1, 2012 to help close a nearly $1.2-million deficit in the city’s water utility. The base rate would rise from $29.64 to $31.12 per thousand cubic feet. A typical residential meter (5/8 inches) would see an increase from $32.60 to $34.23 in the base rate.

The City Council introduced an ordinance (O-30-11) at its Oct. 11 meeting which is scheduled for a public hearing and final adoption on Nov. 14. Also on tap for the Nov. 14 City Council meeting is a public hearing and final adoption of at the Oct. 11 meeting, the governing body adopted the city budget, which this year is a transitional budget as the city goes from a calendar year (Jan-Dec) to a fiscal year (July-June). More on the transitional year budget in an upcoming blog post. [CORRECTION: The public hearing and final adoption of the transitional year budget occurred at the Oct. 11 council meeting; there will not be a public hearing on the budget at the Nov. 14 meeting, only a public hearing on the new water rate ordinance.]

The city purchased additional water for a variety of reasons, according to Chief Financial Officer Frank Ruggiero, including construction and dilution (the heavy snowfall led to a need to dilute water because of the salt). In total, the city spent about $450,000, of which $217,000 was funded through an emergency appropriation and raised in the budget during the transitional year, he said.

The last increase in water rates occurred in 2009, he said, and the proposed rate hike will generate about $231,000 annually.
The water utility carried a prior year operating deficit of $322,000, which needs to be raised in the transitional year. The $217,000 and $322,000 [total: $539,000], plus the amount needed to balance the water utility budget “due to lack of water rent revenue,” Ruggiero said, will require the Current Fund to supplement the utility’s budget by $1.145 million.
The water utility in 2010 ran an operating deficit of about $170,000, with total appropriations of $5.355 million (Page 8 of .pdf of city’s ’11 budget). The proposed 2011 transitional budget (scheduled for adoption Nov. 14) lists appropriations of $5.467 million for the water utility, projecting an operating deficit of about $5,000.
Several council members at the October meeting asked about the possibility of limiting any rate hike to 2 percent in 2012, or revisiting the issue annually. City Administrator and Redevelopment Director Peter Pelissier recommended the increase be 5 percent for three years but if the City Council would prefer an annual analysis, “that makes sense.” In that case, he preferred to see the rate hike higher this year, “but I know people are struggling,” he said.
In the late ’90s, the city hired United Water to manage its water utility for 20 years. Pelissier said the savings to the city over that time are estimated to be $32 million. The city still owns and maintains the facility, he said, paying a fee to United Water to manage it. The fee now is at its highest point but by 2014 will drop below $1 million, he said. The city will realize that drop in the operating budget, Pelissier said, adding that water utility surpluses in the past have gone back into the city budget.
***

Readers who live near the border of Colonia/Woodbridge might be interested in this bit of news from Woodbridge Patch: “Woodbridge Buys Land Development Rights of Colonia Country Club.” Here’s MyCentralJersey.com’s take on the same story.