Water Rate Hike, New Fee, Introduced By Council
Water rates would increase nearly 17 percent under an ordinance amendment introduced at the Township Council’s April 23 meeting.
The Township would also charge a water meter fee ranging from $4 to $257.25 per quarter, depending on the size of the meter.
The hike, if approved, would be the second increase in two years.
The rate hike and new meter fee would go into effect on July 1, if the ordinance amendment is adopted.
The increase translates to a $69 per year increase for the median water bill, Mayor Phil Kramer said.
Township officials have said that a rate hike is necessary because the Township cannot keep underwriting the increases in what its suppliers – mainly New Brunswick, and New Jersey American Water – charge for the water.
The potential for a water rate hike was raised in the Council’s March 19 budget hearing.
Kramer said at the April meeting that the Township’s water bill in the last 10 years has increased 19 percent, while the Township didn’t raise the cost to customers until last year.
“That’s just the water part, not the maintenance, the operations, etcetera,” he said.
The Mayor said the decision to charge a fee for water meters was made to ease the cost of replacing meters for customers.
The smallest residential meter would cost $4 a quarter, or $15 a year.
“People pay for their meters, and when a meter has to be changed, it’s a big sum all at once,” he said. “A meter lasts about 20 years, so at $16, that’s $320 total, and they’ll pay it slowly at $4 a quarter.”
The charge per 1,000 gallons would increase from $6.61 to $7.812, should the ordinance be approved.
The minimum charge per quarter for the smallest meter would increase from $65.10 to $78.12. For the largest meter, the minimum charge per quarter would increase from $3,255 to $3,906.
Kramer also said that there exists the potential for the Township to automatically raise water rates as its supplier charges increase.
“We’re not ready to do that yet, that may come later this year,” he said.
At the March budget hearing, Township Manager Robert Vornlocker said that in 2023, the Township used 108 percent of the allocation for water purchases.
The township spent $10.1 million on water in 2023, Vornlocker said. The 2024 recommended allocation is $11.8 million.
The Township has also had to increase the amount of water it buys from the providers, Vornlocker said.
Public Works Manager Carl Hauck said at the budget hearing that the Township has increased its allocation from New Jersey American Water from 4.8 million gallons a day to between 5.25 million gallons and 5.75 million gallons a day.
The allocation from New Brunswick has been increased from 2 million gallons to 4 million gallons a day, he said.
“The town has gone in the past 10 years from 6.8 million gallons per day to closer to 8.8 million gallons per day,” Hauck said at the hearing.
A public hearing on the proposed water rate hike is set for the Council’s May 14 meeting.