MUA Seeks Meeting with Lower; Dissolution Rumors Fly

VILLAS — Let’s talk. That’s the message Lower Township Municipal Utilities Authority (MUA) sent to Lower Township Council in the form of an e-mail Dec. 5 from MUA solicitor Jeff Barnes.
Rumors have been running rampant of plans of Mayor Walter Craig and Deputy Mayor Robert Nolan to dissolve the MUA.
At a Dec. 3 township council meeting, in answer to a question of dissolution of the authority, Craig said it was a rumor but he was not prepared to answer a question about dissolution and it was “always a possibility.”
At issue, the possible loss of 27 jobs and the potential for higher water rates if the township sells the water operation to a private company.
At a Dec. 5 MUA meeting, Chairman Pete Bitting said dissolution was considered a rumor but no information was available from township council.
“Has anybody looked at the results of dissolving the MUA?” asked MUA Commissioner Thomas Brown. “Our water and sewer rates are among the cheapest in New Jersey.”
Bitting noted Wildwood sold its water operation to a private firm and later bought it back.
Commissioner Charles Garrison said water rates would increase if the MUA were sold to a private company such as South Jersey Water. He said if the township takes over operation, it would require the same number of employees as it has today.
Resident Joe Winter said he believed council was waiting for a new, lower figure for connection fees for water customers.
Commissioner Richard Wall said “connection fee” was an incorrect term since water customers are actually “buying into the system” and sharing the cost of installing water mains in their street, paying down debt service.
Bitting suggested the connection fee be lowered from $1,250 to $1,000 by eliminating the $250 cost of a water meter. He said 402 homeowners that had water lines in their street have chosen not to connect.
Commissioner Bill Thomas said some homeowners in a saltwater intrusion area have not connected to municipal water.
Homeowners have the option of financing the current connection fee of $1,200 over 10 years reducing cost to $120 per year, said Bitting.
Commissioner Richard Wall said council has a draft ordinance in its possession from MUA for mandatory hookups. He said the $1,200 connection fee was supported by Leon Costello who serves as auditor for both MUA and the township.
Barnes said if too low a connection fee were set, water rates would need to be increased to make up the shortfall.
Wall said a compromise with council was possible. He said the only communication between MUA and council was only taking place through newspaper stories.
Brown said Councilman Glenn Douglass, who was attending MUA meeting until two months ago had been expected to set up a meeting between representatives of council and the MUA but that did not happen.
Bitting said MUA Commissioners have never settled on a lower price for connection fees. He said MUA has lost a lot of revenue from the 402 homeowners that did not connect.
Bitting said MUA was “not broke,” and had money to pay its bills but could not expand the system because it could not get bonding without a guaranty of homeowners connecting to the system.
“That is why we need mandatory connections,” he said.
MUA Executive Director Clifford Gall said with mandatory connections, MUA could begin bonding and designing expansion of water service into additional neighborhoods.
Bitting noted that a number of residents did not connect because they are satisfied with the quality of water coming from their private well.
Resident Robert Rizzo asked if MUA was “any closer” in finding a new executive director.
Bitting said applicants backed out because of what they have read in the newspaper about a possible dissolution.
“The bottom line is the MUA belongs to the ratepayers,” said Brown.