MUA Asks Hike to Dump, Flush As Income Dips

SWAINTON ––For the first time in 14 years, Cape May County Municipal Utilities Authority’s Budget Review Committee announced tipping fees and user rates will increase for Solid Waste and Wastewater programs at its meeting Nov. 5.
The proposed 2009 budget would result in a 3.7 percent tipping fee increase for the disposal of solid waste collected by municipalities and commercial sources.
The budget resolution, passed at first reading, states solid waste quantities vary from 10,682 tons in February to 21,357 tons in August “as a result of the county’s significant variation in population.”
Board members noted a decrease in the local construction industry and therefore a decrease in construction and demolition waste at the landfill.
If approved, disposal fees will increase $2.25 per ton from $60.75 to $63. The proposed budget also reflects an increase in construction and demolition waste disposal fee from $68.35 to $69 per ton, an increase of 65 cents.
Despite the increase, the authority board members noted the county has the second lowest tipping fee in the state, second only to Cumberland County, according to a recent survey.
Total program revenues for all sources, including grants receipts, disposal fees, earned interest and recyclable sales are projected at $14,612,558 for 2008.
Board members said municipal solid waste tonnage has decreased by 3.57 percent in 2008, the first decrease in five years.
John Pantalone, chairman of the Budget Review Committee, said revenue has decreased significantly with dropping investment interest rates and lower tonnage. He said the user fee increase is “fair to the MUA and fair to the rate payers.”
Executive Director Charles Norkis said revenue has decreased $6 million since 2005. Solid Waste Program Manager John Baron said this is due to decreasing tonnage sent to the Intermediate Processing Facility (IPF). He the MUA received 251,000 tons in 2005, compared to the projected solid waste total of 165,177 tons for this year, a decrease of almost 90,000 tons in three years.
“It’s a tremendous amount to have to make up,” Norkis said.
“We can’t go forever with rate decreases and it’s an accomplishment that we were able to keep them from increasing for so long,” Chairman George Betts said.
Baron suggested municipal recycling could offset an increase in solid waste disposal cost for municipalities and he continues to project towns will receive a per-ton recycling rebate, despite the authority losing revenue and gaining expenses.
Pantalone said initially the budget committee anticipated an increase of 5.2 percent but managed to work it down to a recommended 3.89 percent increase.
Wastewater Program Manager William Cathcart said the authority estimates wastewater rates on a six-year running average, which are recalculated if the estimation was off and adjusted to municipalities’ quarterly bills. Increases in wastewater user rates vary among each town depending on their amount of flow.
Cathcart said one-third of individuals’ water and sewer bills are dependant on MUA fees. Factors such as population and construction impact how much a town absorbs or passes the burden on to its utility users.
“Rising fuel and energy costs impact us dramatically,” he said.
Cathcart said the MUA has taken steps to counteract increasing costs by gaining a more cost-effective odor-controlled chemical system and also reducing staff by one wastewater employee, through attrition, for the 2009 budget.
Baron said the overall budget increase of about 3.7 percent is below the consumer price index which is at about four percent.
“We intend to keep the increase under the general inflation index,” Cathcart said.
Public hearing will take place at the authority’s Dec. 3 meeting, 4 p.m. at 1532 Rt. 9 in Swainton.
Reports are available on the authority’s Web site: www.cmcmua.com
Contact Truluck at (609) 886-8600 ext. 24 or at: ltruluck @cmcherald.com.