E.B. water rates to rise but still among lowest

EAST BRUNSWICK — Though officials recently approved a water service rate increase, the township’s monthly utility cost remains one of the lowest in Middlesex County.

The Township Council unanimously passed a resolution Feb. 22 that will raise East Brunswick water service rates $1.79 per month for each household. The increase is based solely on a decision by the state Board of Public Utilities (BPU) to inflate water costs, Township Business Administrator Jim White said.

“When the BPU imposes a rate increase, it’s beyond the township’s control,” White said. “Not a penny of that increase has anything to do with something our water utility may have done.”

With the increase, the average township household will pay approximately $325 per month on its water utility bill. According to Mayor David Stahl, the monthly cost is one of the lower rates in the county.

“This is a testament to just how well our water utility has been run over time,” Stahl said, noting that the township utility also provides some service to surrounding municipalities including Spotswood, South River and Helmetta.

The mayor compared East Brunswick rates to the monthly water service rates of neighboring towns such as Helmetta, $525; Highland Park, $616; Milltown, $697; New Brunswick, $470; Old Bridge, $588; Sayreville, $475; Spotswood, $500; and South River, $1,562. Those figures do not include the recent increase mandated by the BPU.

“So there’s an even larger discrepancy between rates than we’re estimating here,” Stahl said.

White said the township’s Water Policy Advisory Committee enlisted the help of Guastella Associates, a utility consultant that East Brunswick used in the past, in order to minimize rate increases. But White noted that most of the rate analysis was done in-house, with Lou Neely, chief financial officer of the water utility, working to achieve a low cost.

“Lou Neely deserves most of the credit in keeping increases to a minimum,” CouncilwomanNancy Pinkin said. “Lou is tough and he’s consistently gotten us lower rates.”

Stahl noted that the minimal increase is indicative of what can be done with sewer rates if the sewerage authority becomes a township run entity later this year.

“Quite frankly, that same strategy will help make the utility merger effective,” he said.

Stahl broached the idea of dissolving the East Brunswick Sewerage Authority (EBSA) in his Jan. 25 State of the Township address, saying it would likely save the town over $300,000. If approved, he said, the autonomous body would be dissolved and merged with the township-run water utility, subsequently creating a single municipal utility.

Implementing requires support from the Township Council, which has the power to adopt the ordinances needed to dissolve and merge the body.

While several officials appear to support the merger, Councilwoman Camille Ferraro has raised concerns about the new combined rates and the perceived operational differences between the two utilities.

“Councilwoman Ferraro said there’s nothing similar between water and sewer, but there’s a lot in common. For anyone to fear that the township running the sewer authority will somehow cost more, my track record is proof that it won’t,” Stahl said, referring to the expenses he has cut since becoming mayor last year.

Stahl said the savings incurred from low water rates would contribute to improved sewer rates, thus stalling any possible sewer rate increases.

“Future rate increases for sewer service will be delayed, maybe indefinitely, or at the very least until we get our bearings,” Stahl said.

He stressed that there would be no changes in service, and that properties that use septic systems would not be charged if they currently do not pay into the EBSA.

Stahl said township officials have already met with the executive director of the EBSA to discuss the possible merger. He also noted that the municipality has received the documents required to pursue dissolution and has recently sent all necessary financial information to a bond counselor in order to begin financing and reissuing bonds.

No major action will be taken until after this year’s budget has been completed, the mayor said.

“We’re working through our operating budget right now,” he said. “Once we close in on that, we can turn our attention to the merger.”