Breaking Down the Sewer Bill

Scotch Plains’ council meeting was a packed house this week as residents and business owners came out to raise concerns about the township’s new sewer bill.

The municipal building has been inundated with calls in recent weeks from those who still don’t understand the bill and the township’s decision to issue it. The town manager recently posted a frequently asked questions document on the town Web site. But as more questions get answered, more continue to be raised.

So, to help with any confusion, here is a rundown of some of the issues that were discussed at the last council meeting.

In the past, every resident paid a sewage fee in their taxes based on the assessment of their home. How will being charged based on water usage change that cost?

Mayor Nancy Malool maintained that charging residents by usage will make the bill more equitable. During the meeting, she drafted an example to show how residents were unevenly charged in the past. Malool said that previously, the owner of a $1.5 million home who only lived there half of the year and rarely used water, was paying $319 for their sewage, whereas a family with a home valued at $300,000 that lived there year-round and had six people using water daily was paying $73. Malool stated that she thinks charging residents based on their water usage will make the bill fairer for everyone since homeowners will be paying for what they use.

Why were single-family homes charged a $250 rate this year, and condos $180?

The township’s budget consultant, Greg Fehrenbach, said that those rates were set based on data from the water company that showed the average flow of water out of these properties. The single-family home rate is higher, he said, because the average flow out of them is higher.

Why is the sewer bill so much higher than a water bill?

Malool explained that it costs much more to treat the water at the plant than it does to obtain it.

Will the rate at which residents are charged for usage next year be different than that for businesses and non-profits?

Fehrenbach said that whether the water that’s being treated is coming from a residential or commercial property, it all costs approximately one cent per gallon to treat. He said that the likelihood is that if the rate is going to be adjusted, it will be done across the board. The rates are volatile, he said, and may rise and fall from year to year due to a variety of factors.

Does the Special Improvement District assessment have anything to do with this new sewer bill?

No, according to Mayor Nancy Malool.

Who is responsible for paying the bill: the tenant or the property owner?

Fehrenbach said that while property owners are allowed to pass the costs on to their tenants, the property owner will ultimately be the one held responsible should the bill not be paid on time.

Why did the council state on the bill that it was created due to rising costs from the Rahway Valley Sewer Authority and the Plainfield Sewer Authority?

Malool admitted that while Rahway’s charge to the township increased by $521,000 this year, the charge from the Plainfield authority, which serves parts of the north side of town, went down. But, she maintained that because everyone’s been equally sharing the costs of the bills to the two separate authorities for years, the charges will even out. Malool argued that Plainfield is expected to have to make upgrades to its facility as well in the future, which will likely lead to an increase in its charges to the township.

How will the bill impact the schools?

In the past, Scotch Plains' taxpayers were solely responsible for bearing the costs of the schools’ sewage usage. But now that the school district will be responsible for the bill, Malool said the cost will be more fairly distributed since it will be passed on to Fanwood residents as well. The same goes for any county-owned buildings. Malool said the county has been issued a sewer bill for its properties, so now those that use the buildings will be impacted by the bill, not just Scotch Plains residents.

Can the township issue the bill using a payment plan?

Fehrenbach said that while it’s typical for utilities fees to be treated like tax payments, which are issued once a year, he won’t rule out that there may be a way to break up the charges into installments in the future.

What happens if bills aren’t paid and the township doesn’t collect the $2.5 million it needs?

Malool said the township may have to raise taxes next year to make up for the loss.