Township Could Absorb NJAW Rate Increase For Rate Payers

The township may temporarily absorb a nearly 7 percent rate increase from New Jersey American Water that has been approved by the state.

But that won’t be indefinite, and at some point the increase will be passed on.

Mayor Phil Kramer announced the 6.6 percent increase – approved by the state Board of Public Utilities – at the November 24 virtual Township Council meeting.

Kramer said the increase in what the township pays for water could immediately be passed on to rate payers in the form of a $2.85 increase per quarter, but the Council’s Financial Oversight Committee did not want to do that.

“The advice from Financial Oversight was the last thing we want to do is put another burden on taxpayers or water users right now,” he said. “We will absorb it, but eventually we will have to pass that on and raise rates.”

Kramer said the Council will have to approve the idea.

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