Six-Figure Surplus for the Sewer Utility
The Scotch Plains Mayor and Council discuss how best to use an $820,000 surplus.
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The Scotch Plains Mayor and Township Council debated Tuesday night how to spend a surprise $820,000 surplus in the town's sanitary sewer utility, which experienced a surge in income due to an increased bill collection rate, Chief Financial Officer Lori Majeski said. The utility was set-up in 2009 to help prevent Scotch Plains from exceeding a state-mandated 2-percent cap on property tax increases.
"People were billed 10 percent more in 2010 because the town only collected 90 percent in 2009," Majeski said. "The collection rate at end of 2010 was 95 percent. People were paying more; I think they realized it was an actual charge and it started to come in.”
Majeski and Assistant Engineer Joseph Timko said that $40,000 will be used to defray the cost of the 2011 sewer utility bill. The rest, however, remains up to Mayor Nancy Malool and the Township Council.
Councilman Kevin Glover argued that the surplus presents a prime opportunity for the township to reintegrate the sewer utility into its budget. Whereas sewer fees alone are not tax-deductible, he stated, residents might realize some tax benefit if the fees were once again made part of the larger municipal budget.
"This is lost money coming back to average homeowner," he said.
Malool, by contrast, advocated refunding the surplus to those who paid the sewer utility bill, adding that use of the funds is legally restricted to "sewer-related costs."
Majeski also noted that utility bill, even if it were folded back into the budget, likely would not be tax deductible. “The problem is the minute you bring it back into the current fund and you bill them for their usage, they still cannot deduct it," she said. "It’s still a user fee, it is not part of their taxes." She added that the utility would also experience a sudden decline in revenue because non-profit organizations, which are tax exempt, would no longer be paying for their sewer usage if it were made part of the tax levy.
Malool said that she and the council will continue to discuss how to use the surplus, but stated that she was pleased with the sewer utility overall.
“When we established this we were pretty clear to the residents that their rates were going to go up and down as their usage went up and down,” she said. “I think this is working the way we envisioned it to work. When there is an increase people are going pay more, and when we have money to give back we’ll give back.”
Holden Magroin
11:37 am on Thursday, April 7, 2011
I'm Holden MaGroin and I'm outraged that only 90% paid the "poop tax".
Instead of collecting the full 100%, the town charged me for 11 poops and I only had 10.
I'm not very good at ciphering, but if they collected 5% more and it equals $820,000, then I'm guessing that 10% equals about $1,600,000 of free flushes to some people. What happens to that money? Are leans put on those houses? Should I stop paying? I already have the boys peeing out back.
I guess I'll need to start including Kaopectate in my corned beef.
SP homeowner/taxpayer/parent
1:24 pm on Thursday, April 7, 2011
holden: "liens"
Holden Magroin
2:19 pm on Thursday, April 7, 2011
Thank you SP. When oh when will patch get spell and grammar check?
Although I could make a case that if the houses were more "lean" there could be less sewer usage.
frink
5:39 pm on Thursday, April 7, 2011
40k out of 820k will be used to defer this year?? How is this even a question, put the whole thing towards it since that is what we paid this money for!! Then, lower the remaining total charge so we don't have to overpay going forward.
SP homeowner/taxpayer/parent
5:48 pm on Thursday, April 7, 2011
don't tell us, tell them!
Nick Nacks
5:48 pm on Thursday, April 7, 2011
If there is a surplus, why not return it (in the form of a credit) to those who paid it, rather than pi$$ing it away on some nonsense & then raising the rates for next year? I know that may actually make sense to some, which is why the council will never approve it.
Shari Hartstein
3:29 pm on Friday, April 8, 2011
I agree with Mr. Nacks above, why wouldn't the surplus be used toward this years costs to the Town and then bill the balance due to the tax payers, which will hopefully result in lower tax bills then in prior years.
Bill
11:26 am on Sunday, April 10, 2011
Now lets get this straight we pay taxes and the sewer is included in our current taxes. But so that our taxes don't go up by more than 2% we were charged an additional usage charge, but our taxes did not go up? Wow is this even legal? I guess it is because they are doing it. I think that everyone who OVERPAID!!!! Should get a "CREDIT" on the next insanely ridiculous sewer usage charge. Instead of mailing out refunds and paying for postage and additional labor costs.
Frank J. Festa
6:54 am on Tuesday, April 12, 2011
Now that we have this surplus the Township Council will spend it and purchase a new sewer jet truck. There is no explanation as to why the Township needs this new equipment. What happened to the current sewer jet truck? When was it last used? How many times per year is it used? If we need a sewer jet truck could we rent one for a day? These and many other questions need answers.
Nick Nacks
9:21 am on Tuesday, April 12, 2011
What on earth is a sewer jet truck? And why does the Township need one? I'd love an answer from one of our town leaders, the ones who insist on throwing away taxpayer money on whims (like the southside ball field and the miniature golf course that nobody uses). Answers, anyone?????????
bgporter
10:41 am on Tuesday, April 12, 2011
Something like this, I'd guess: http://www.sewerequipment.com/800HPRTV.htm
If they are buying this one with the TV Camera, I'd hope that SP Taxpayers insist that the video feed be broadcast on http://scotchplainstv.org/
Bill
1:09 pm on Tuesday, April 12, 2011
We live in a continually repeating joke. I am sorry and don't want to sound too offensive but I can't wait to move out of Scotch Plains and NJ. I was in Westfield with my wife last night having dinner and afterward walked around the block and was amazed to see many newly opened stores and restaurants. I said to my wife how wonderful downtown Westfield was, she got a little peeved and took offense to my remark. I explained to her that downtown Westfield was so nice because the Westfield governing body actually cares about their town, had a vision and made it was it is today and continues to do their job. Unlike Scotch Plains that continues to over tax us and imposes Verizon style taxes (charges) on us. I want things to change for the better in Scotch Plains not just be the pass through town to Rt. 78.
FanwoodMom
9:28 pm on Tuesday, April 12, 2011
Did I read an article in one of the local papers about a year ago that alluded to the notion that the calculation of the sewer taxes was incorrect? Were the bills ever corrected? Did that have anything to do with the surplus?
Frank J. Festa
3:48 am on Wednesday, April 13, 2011
Did you contact your Mayor and Council? Regards,
Frank J. Festa
7:50 am on Wednesday, May 4, 2011
Proposal for Dissolution of the Sanitary Sewer Utility. This will come before the Scotch Plains Township Council during their June meeting.
Machiavelli
9:59 am on Wednesday, May 4, 2011
Have not heard about any proposal for dissolution of the sewer utility. Good idea but who is proposing it?
Frank J. Festa
10:28 am on Wednesday, May 4, 2011
It was on their agenda last night and was put off to June.
Alan Neuhauser
11:58 am on Wednesday, May 4, 2011
Mr. Festa is correct. Stay tuned for the story about last night's meeting – which included lengthy discussion on Shackamaxon – coming soon.
Scotch Plains Mom
1:24 pm on Wednesday, May 4, 2011
Mr. Neuhauser - if you could get the information out about what happened with Shackamaxon and what the implications are for this it would be appreciated....It seems that most of town is against the decision of the town council. Whether it be the neighborhood, members of Shackamaxon or Westfield neighbors - what the council is doing is being met with animosity. Is this just a zoning deal or can they actually take possession of this land and go through with this ridiculous plan???
Suzy Frame
10:19 am on Tuesday, July 31, 2012
Thanks for this story and article. It is very interesting that there is such a debate and issue about the sewer and <a href="http://www.westvac.com/?page_id=34">sewer equipment</a>. I had no clue that there was such a problem with it or a worry. Can you tell me where I can find more information on this subject and the updated news on it?
Frank J. Festa
2:38 pm on Tuesday, July 31, 2012
Suzy, please come out to the Scotch Plains Council meetings and ask questions. Regards,