With Sewer Fee, Neighboring Towns Lead the Way

This past week Springfield residents received a sewer utility bill for the first time (click here for a note of explanation from Springfield Deputy Mayor Bart Fraenkel). 

It's new for Springfield, but it's not new for the state. In separating its sewer fee from its municipal tax bill, Springfield  follows a long list of municipalities who have already made similar moves. Sharp increases in assessments from the Rahway Valley Sewerage authority and state-mandated caps on tax increases have made it difficult for member municipalities to include the sewer fee as part of the municipal tax bill.

The Township Committee voted last month to separate its sewer fees from the tax bill, starting with a $250 minimum bill, increasing for those who use more than 48,000 gallons per year.

"It was difficult in many ways," said committee member and finance committee chair Jerry Fernandez, who chaired the finance committee this year.

Between RVSA increases and increases in pension and health care costs, the township was looking at a 10 percent increase in taxes, or a combination of layoffs and furloughs, which still would not have eliminated a tax increase, he said.

While Fernandez called the decision difficult, other municipalities felt it was their only option.

"Pulling away from it wasn't a difficult choice whatsoever," said Mayor James Kennedy of Rahway, which separated its sewer fee from its tax bill in 2008. "How do you stay within your cap with such astronomical increases? I think it's impossible.

"And moving forward with a 2 percent cap, I don't know how anybody could not do it," he added, referring to state-mandated caps on property tax increases that will drop from 4 percent to 2 percent.

Rahway residents are charged based on their zoning: When the utility went into effect on Jan. 1, 2008, single-family units paid $245, two-family units paid $392 and condominiums paid $196. Properties owned by senior citizens who qualified for a state senior citizen tax deduction paid $50. And commercial, industrial, not-for-profit, apartment and government properties paid a flat rate according to their category plus an amount based on consumption.

RVSA, which serves 11 member municipalities in Union and Middlesex counties, recently underwent a court-ordered capital project that was supposed to cost $70 million but ended up in the $300 million range. These costs have been passed to member municpalities.

The first RVSA member to create a separate utility was Clark, in 2006.

"We had the forsight earlier than most to see the impact this would have on our tax levy and budget," said Mayor Sal Bonaccorso. "The grotesque increases these people have given – our municipal budget cannot absorb them. So we started this sewer utility, and it worked out well. The bigger users pay more."

Clark bases its sewer bills based on usage during the "off months" of October through April.

Scotch Plains made a similar move last year, charging residents a flat fee of $250 per residence, and $180 for townhouses and condominiums. Like Rahway, it charged non-residential properties a flat fee plus a fee for usage. This year, the township shifted to system based entirely on usage, with the average homeowner paying $254, according to a report from Scotch Plains-Fanwood Patch.

Westfield in May voted to oppose a plan to separate its sewer fee from the tax bill, according to a report from Westfield Patch.

The city of Summit, which is in Union County but not a member of RVSA, has charged residents a flat rate of $172 for several years, according to Acting City Treasurer Scott Olsen. Commercial properties, he added, pay based on water use.

Cranford is in the process of separating its sewer fee from its municipal tax bill. Unlike most neighboring municipalities, however, its sewer fee is pegged to assessed property value. The cost, then, is identical to what it was when it was included as part of the municipal tax bill.

"They're paying a fee they've paid for years and years and years, and it's calculated identically to the way it's been calculated for years and years and years," said Mayor Mark Smith. "The totals are the same."

Springfield's system, according to Fernandez, was the product of research by the township's attorney, engineer and chief financial officer.

Editor's Note: The original version of this article was accompanied by a photograph of a storm drain. As a reader pointed out, that illustration was misleading, as storm sewers carry runoff from streets into streams and rivers and the RVSA processes sanitary sewage water from homes and businesses.