Reminder: Hopatcong Council Meeting Tonight – Sewer Rate Study Presentation

Hopatcong News
Typography
  • Smaller Small Medium Big Bigger
  • Default Helvetica Segoe Georgia Times

Tonight, on November 26, 2019 (7:00 PM) the Borough of Hopatcong will hold their standard Council Meeting held at the Borough Complex.

The attached agenda for the meeting includes the long-awaiting presentation on the Sewer Rate Study that was completed in September. We have included “Section VIII Conclusion” from the study for your review below.

IV.  Conclusion: (from 2019 SEWER RATE STUDY PHASE II)

  • The existing rate structure imposes an unfair burden on the residential users. Likewise, commercial users are not paying their fair share based on their estimated annual water usage.

  • In an effort to more fairly distribute the sewer charges to the sewer system users, LV&H presented and discussed several different alternative rate structures with the Borough’s sewer committee and consulting engineer. Ultimately, it was the consensus of the parties that we present the new proposed rate structure contained in this report.

  • The new rate structure proposed by the Borough would result in:
    • A new definition for an Equivalent Dwelling Unit (“EDU”) as follows:
      • Each residential structure will be defined as one (1) EDU. One bedroom apartments will be defined as one half (0.5) an EDU and apartments with two or more bedrooms will be defined as one (1) EDU.
      • Each separately metered commercial account or unmetered commercial building structure serviced by wells (regardless of the number of commercial businesses) will be defined as one (1) EDU.
      • Each separately metered mixed use commercial account will be assessed a minimum number of EDU’s per quarter as follows: one (1) EDU for all commercial businesses (regardless of the number of commercial businesses); plus one (1) EDU for each residential/apartment unit consisting of two (2) or more bedrooms; plus one-half (0.5) an EDU for each residential/apartment unit consisting of one (1) or fewer bedrooms supplied by said water meter.
    • A decrease in the flat fee portion of the quarterly sewer bill of $22.50 (or 7%) per EDU from $322.50 to $300.00 based on the new definition of an EDU as previously discussed.
    • A decrease in the water allowance included in the minimum flat fee billing for commercial and mixed use commercial users from 22,000 gallons per EDU per quarter to 10,950 gallons per EDU per quarter. The “usage” fee for water usage exceeding the allowance included in the minimum would be phased in as follows: i) 2020 - $21.92 per 1,000 gallons; ii) 2021 - $24.66 per 1,000 gallons; and iii) 2022 - $27.40 per 1,000 gallons,

  • The Borough proposed new rate structure as presented herein reallocates sewer user charges to the various user classes based on the number of EDU’s and modified historical average quarterly water ­usage for 2017 and 2018, Under this proposed rate structure, user charges would be more closely aligned to projected water usage by user class.

  • Under the new rate structure proposed by the Borough, the sewer utility operating fund projected fund balance would decrease from $3,520,076 as of December 31, 2018 to $2,588,727 as of December 31, 2022. These projected fund balance levels are consistent with historical fund balances maintained by the Sewer Utility Operating Fund. An analysis of historical fund balances for the years ended December 31,2014 through 2018 is presented on Exhibit 1.

  • The projected utilization of fund balance under the proposed rate structure provides for a decrease in the quarterly minimum sewer charges for all users, while still providing for a target fund balance of 30% of operating expenses. This target fund balance which is approximately $1.3 to $1.4 million is used by the debt credit agencies when evaluating a municipality’s debt rating to finance capital projects.

  • The projected billings for 2020, 2021 and 2022 under the proposed rate structure are presented on Exhibits 9a, 9b and 9c, respectively.

  • We recommend that the Borough conduct a site visit to verify the number of EDU’s to be assessed to each of the commercial and mixed use commercial accounts prior to implementing the new proposed rate structure presented in this report.

 


Never miss your News & Events:  

If we can assist you in any way contact: Editor@MyLakeNews.com

 

 

 

Comments powered by CComment

Upcoming Events