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MORRIS COUNTY

New sewer fee costing Rockaway residents

Michael Izzo
@MIzzoDR
Aerial view of Jersey City Reservoir.

ROCKAWAY – Borough residents were surprised earlier this month when they received a letter informing them that they will soon pay hundreds more per year in sewer costs.

A new, separate sewage fee will cost residents about $60 to $80 more per quarter depending on overall water usage, for a total of about $240 to $320 more per year, according to the letter, which is also available to read on the borough’s website.

Borough resident Margaret Crouse is not pleased with the news. She said her family spent about $1,790 in non-school, local taxes, including sewage costs – but not water charges - in 2015 and is not looking forward to paying more.

“Rockaway Borough has always been known as one of the more affordable towns in Morris County, and I fear that’s changing,” Crouse said. “This is certainly going to be a burden for families in Rockaway.”

The ordinance introduced by Rockaway’s governing body makes the new fee effective July 1.

The fee is a result of needing to pay the Rockaway Valley Regional Sewerage Authority (RVRSA), a wastewater treatment center that also serves Boonton, Boonton Township, Denville, Dover, Mine Hill, Randolph, Rockaway Township, Victory Gardens, Wharton, and Picatinny Arsenal.

Each municipality is charged a fee based on the amount of wastewater that is treated in addition to other expenses including payroll needed to run the plant.

The treated water is then sent to the Jersey City Reservoir on Route 46 in Parsippany, and until recently, Jersey City paid a significant portion of the RVRSA’s operating costs. But in 2010, Jersey City filed a lawsuit against RVRSA and the municipalities it serves to reduce or eliminate its payments.

Rockaway said the lawsuit is ongoing, with a trial expected to begin early next year. In the meantime, the borough and other municipalities are paying the legal fees associated with the litigation, and any reduction in Jersey City’s costs following the trial would also need to be paid by the municipalities.

Rockaway said other municipalities have had a separate sewer charge for several years.

Denville Business Administrator Steven Ward said the township added a sewerage charge beginning in 2013. Prior to the Jersey City lawsuit, he said the township’s annual assessment for RVRSA was $336,000, but Denville portion has since jumped to $731,000.

This is due to several factors relating to the lawsuit that aren’t limited to legal fees. Ward said he believes Jersey City is paying operation and maintenance at 2010 costs and stopping capital costs all together while litigation is pending. That leaves the other municipalities absorbing the debt.

Denville residents paid $300 per year until 2013, at which point the quarterly fee was upped from $75 to $106, a more than 25 percent increase. Ward said the charge has stabilized since then, but depending on litigation could increase or decrease.

“This is beyond control of the municipality,” Ward said. “We have an obligation to meet the needs of our residents and this has had an adverse effect on all the towns.”

Similarly, Randolph Manager Stephen Mountain said the township has been reserving funds to buffer against potential outcomes of the case for years, setting new fees in place dating back to 2012.

Rockaway was the last municipality to hold out, according to Mayor Russell Greuter.

The borough has been able to handle the fees through municipal property taxes until this year, when Rockaway said its costs increased by $39,559, a 36 percent increase from 2015. Most of those costs are attributed to legal fees, borough clerk Sheila Seifert said.

“In addition, the legal costs and additional costs if Jersey City fails to make its payments would most likely force us to cut vital services in order to keep local property taxes within the 2 percent property tax cap levy,” the borough said. “This is the main reason why it is necessary to assess property owners with a separate user fee at this time.”

While several options were considered for how to charge residents, including one flat rate or a fee based on property values, the borough’s auditor determined measuring water consumption was the fairest way.

The fee will be a flat base charge of $50 plus a use charge based on water consumption at $0.0073 per cubic foot.

These fees are in addition to the general water bill, meaning a quarterly sewer and water bill may be anywhere from $120 to north of $200, for an annual cost possibly exceeding $800 based on water use. Businesses and other large properties can expect annual fees exceeding $1,000.

The separate fee was put in place as opposed to taking from taxes to both limit the annual tax increase and to prevent those who don’t use the sewage system from having to pay.

But taxes are not expected to go down at this time, the borough said. The 2016 budget does cover the year’s expenses through June in addition to other costs including pensions and a new police officer hire, resulting in a tax increase. The borough said taxes may go down in 2017 assuming all other costs remain the same.

The rate is expected to hold steady for at least two years.

“But we can’t predict the future,” Greuter said.

Properties that have septic tanks and those exempt from property taxes including disabled veterans and surviving spouses will not have to pay the new sewer fee. Out of the borough’s 6,500 residents though, only five properties have septic systems.

However, borough churches, schools, and other properties currently exempt from property tax will have to pay the $50 base charge and consumption fee based on their water usage.

Should the combined water and sewer bill not be paid in full, the water will be shut off after 60 days. Unpaid water and sewer balances are also eligible for tax sale as a municipal lien against the property, the borough said.

The lawsuit is expected to be heard in January 2017, though if Jersey City loses, the borough expects them to appeal.

“And if we lose, that affects us more,” Greuter said.

Borough officials say there is no other option to switch to besides staying with RVRSA.

“We cannot afford to build a sewage treatment plant in Rockaway Borough,” Greuter said.

A public hearing on the new sewer fee will be held Thursday at the Thomas Jefferson School cafeteria, 95 East Main St. The borough plans to give a short presentation, after which the public can ask questions and meet individually with Greuter and council members.

The borough has also provided a hotline to answer the public’s questions at 973-627-0036.

More information about Rockaway’s new sewer fee is available at http://borough-of-rockaway.eggzack.com/uploads/borough-of-rockaway/20160317-vpBmsrYI8d.pdf/.

Staff Writer Michael Izzo: 973-428-6636:mizzo@GannettNJ.com

If you go:

Public information session on sewer fee

When: Thursday, March 31, at 7:30 p.m.

Where: Thomas Jefferson School, 95 East Main Street in Rockaway