Sewer Fees Increase In West Orange; Council Gives Green Light

WEST ORANGE, NJ — The West Orange Town Council approved a hike to local sewer fees during their meeting last week.

The council unanimously voted in favor of a resolution that paves the way for fee increases, which were billed on July 1 and payable on Aug. 1, with a 15-day grace period expiring on Aug. 15.

As spelled out in the resolution, the following rates will be charged:

• “Each dwelling unit rate will be $550 per unit”
• “Properties classified by the Township Assessor as Class 2 Residential properties with 5 bedrooms will pay $550 per unit”
• “Properties classified by the Township Assessor as Class 2 Residential properties with more than 5 bedrooms in a unit will pay an additional $50 for every additional bedroom in that unit”
• “Properties classified by the Township Assessor as Class 2 Residential properties with less than 5 bedrooms in a unit will receive a $50 credit for every bedroom less than five in that unit, up to a maximum credit of $200 for that unit”
• “Properties classified by the Township Assessor as any other Property Class 2 will pay $550 per unit”

According to the resolution, some seniors and people with disabilities will be eligible for a 25 percent reduced fee, although the exact mechanism or program that would provide the discount was unclear as of last week’s meeting.

The sewer fee hike comes as the West Orange Town Council is considering a municipal tax increase that was previously ballparked at 16 percent, but has reportedly been chopped down to about 6 percent – partly by introducing new revenue.

In May, chief financial officer John Gross told the council that West Orange could collect an additional $2.4 million if it changes the way it calculates sewer payments for local properties, businesses and homes. See Related: 3 Ways To Reduce A Looming Tax Hike In West Orange

Currently, the projected amortized cost for the sewer system and treatment is close to $10 million annually. But sewer fee collections in 2023 were projected to only reach $7.3 million, he said.

Township sewer users pay a fee for the cost of maintaining the sewer system and for the cost of sewer treatment. Users are charged a fee based on the number of units in their home or building. The previous sewer rate was $350 per unit annually.

“This was a very tough, tough decision,” Council President Tammy Williams said at last week’s meeting.

“I certainly opposed the increase for the very reason that I am concerned about the municipal tax increase and a sewer tax increase – in my opinion, that’s a double fee,” Williams said.

However, the reality is that the town has to balance its budget and needs the revenue, she added.

Gross said that the sewer hike is tied to this year’s proposed municipal budget, and if it didn’t pass a council vote, it would trigger several complications for the township, including a need to borrow money in the interim.

Watch the video below (video is cued to the discussion).

Several people criticized the fee hike during the public comment portion of the meeting. Some said it would make it harder for seniors to “age in place” as they grow older. Another questioned why the town has a separate charge for sewer usage instead of including it in the municipal tax levy that residents pay to the township.

West Orange also increased the township’s sewer fees in 2016, hiking them $100 from the previous year. Read More: West Orange Jacks Up Sewer Rates For 2016

Former Mayor Robert Parisi issued a statement about the increase at the time, noting that the town is part of the Joint Meeting of Essex and Union Counties Sewerage Authority, which operates and manages the sewage plant in Elizabeth, and assesses the connected communities an annual charge to cover operating costs.

“The township worked for many years to keep the sewer costs low, but it was kept artificially low by absorbing the difference in cost in the general operating budget,” Parisi wrote. “However, as the related costs have continued to rise ... it is impossible for the township to absorb the difference in the general operating budget, especially with general operating expenses such as insurance and salaries increasing at the same time.”

West Orange isn’t the only municipality in Essex County to raise its sewer fees this year.

Last week, the Newark Municipal Council gave its final approval to ordinances that pave the way for increases to sewer and water bills in the city over the next five years.

Over the next decade, about $1 billion in improvements will be needed to maintain the combined systems. Meanwhile, annual expenses are projected to increase by $47 million over the next 10 years. If the city didn’t raise its rates, the utilities would begin to incur deficits in 2025, which would balloon to more than $40 million by 2032, a city administrator said.

• See Related: Newark City Council Approves Sewer, Water Rate Hikes

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