Montville Considers Giving Sewer Rebate

The will hold a public hearing on a resolution introduced Tuesday to return more than $2 million of sewer department surplus money to ratepayers.

According to the resolution, from July 1 through Dec. 31, 2012, both residential and non-residential ratepayers (metered and non-metered) would have a holiday where they would not pay any base rate or rate per 1,000 gallons. Beginning on Jan. 1, 2013, residential ratepayers without meters would pay a base rate of $135 and those with meters who use 0 to 100,000 gallons of water or more would pay a base rate of $80 and $3.10 per 1,000 gallons. Non-residential users without meters would also pay a $135 base rate but those with meters would pay an $80 base rate and $3.10 per 1,000 gallons for 0 to 20,000 gallons and $4.71 per 1,000 gallons for 21,000 gallons or more.

The committee has been for quite some time after learning that the department had been operating on a surplus for years. But the committee held off on introducing an ordinance to address the surplus at the last committee meeting, as the township administrator had consulted the New Jersey Attorney General's Office on whether the township was able to give the ratepayers a holiday. Township Administrator Victor Canning confirmed Tuesday that the option was available.

Canning said after the $2 million is returned to ratepayers with the six-month holiday, between $400,000 and $500,000 would be left in the sewer surplus. Committeeman Jim Sandham, who ultimately voted against the ordinance for the introduction of new sewer rates because he felt the rates included did not encourage conservation, said the money left in surplus would serve as a "buffer."

"The new rates are designed not to create a significant surplus," he said.

Sandham also said he felt the new rates do not "give enough of a break to low volume users, like senior citizens."

Also Tuesday, the township committee held a public hearing on an amendment to the sewer utility portion of the 2012 municipal budget.

"Because of the changes that we're making, in terms of rebating money back to the ratepayers, once those changes [go] into effect, it has an impact on the budget," Commiteeman Don Kostka said. "But this impact has no impact on your taxes."

The township committee will be holding a public hearing on the new sewer rates at its June 26 meeting at 8 p.m.