CAPE MAY – According to Mayor Zack Mullock, Cape May’s water and sewer utility has been running with an outdated fee structure, forcing the utility to erode its surplus funds to break even.
Cape May City Council, at a March 30 special meeting, implemented a new fee structure, while also pointing to a need to renegotiate city contracts that set fees for water and sewer service across Cape Island.
“The contract with the Coast Guard base could have been written on papyrus,” Mullock said of a document on “yellowing paper” that hasn’t been renegotiated in over 20 years.
Mullock also spoke of a resolution on the agenda to alter water fees charged to Cape May Point, which, he said, was alerted and is “expecting a new number.”
The water and sewer utility will also be raising fees on city residents, as officials try to place the utility on a sounder financial base. Mullock said increases in the sewer rates are largely driven by county Municipal Utilities Authority fees.
Water rates for city residents will only increase on those who have excess usage above the allowed base amount.
