Sea Isle Water, Sewer Rates Jump 15 Percent

SEA ISLE CITY — Water and sewer users in this community are facing a $1.1 million or 15 percent hike in user fees.
The cost of water jumped from $240 to $280, while the sewer charges went from $640 annually to $740 per dwelling unit.
On Tuesday, March 17, City Council voted 3-1 to approve the rate hike ordinance. Councilman Frank Edwardi was absent from the vote and Councilman Michael McHale represented the single no-vote.
The increases are expected to make up for a $158,000 shortfall the utility had last year, McHale said.
Council President John Divney said 70 percent of the hike is due to a $388,000 debt service increase and $389,000 increase in charges from the county Municipal Utilities Authority (MUA).
McHale told the Herald that the administration failed to inform council of the shortfall in a timely fashion that would have allowed more time to find a better solution to the problem. He said utility bills were mailed out in October and council didn’t find out about the shortfall until the budget was proposed in January.
“We should have looked at this situation sooner,” he said.
McHale also faulted the administration for ignoring recommendations made in a report done by SICTA, the city’s taxpayers association. The report found that the city allegedly misallocated over $800,000 in expenses to the water and sewer utility from the municipal budget.
SICTA made eight recommendations in its report:
• New rate approach including lower base chares, lower water rates and higher sewer rates
• Subsidized low-flow fixtures for customers that use more than 200,000 gallons
• 25 percent rate surcharge for large customers that don’t use low-flow fixtures
• Inspection of “exclusion” meters
• Invest in smaller infiltration and inflow projects while larger study is done
• Publish monthly reports to improve understanding of usage trends
• Create committee to focus on MUA budgeting and municipal allocation
• Certify independently the accuracy of the MUA sewage flow meter
SICTA President Tom Henry said his organization was very disappointed that council approved the rate hike particularly after the 60 percent increase enacted only two years ago.
“Our review of the Rate Structure revealed a grossly unfair system that overcharges the majority and provides significant savings to a small number of high volume users,” Henry wrote.
“Our studies were shared with the City Administration and City Council in a timely manner that would have allowed time to amend the Ordinance,” he added. “Sadly, that did not happen. SICTA will continue to fight for a fair rate structure. The majority should not be charged for the excesses of less than one percent of the ratepayers.”
Divney said SICTA made some good points in its report particularly regarding the current rate structures and the Infiltration and Inflow situation, but there wasn’t enough time this year to consider the recommendations.
“We’ve agreed to review the report with the administration and will invite SICTA to join us,” Divney said.
Administrator George Savastano could not be reached on March 19 or March 20 for this report. Check back at www.capemaycountyherald.com and the March 25 print edition of the Herald for updates.
Contact Hart at (609) 886-8600 Ext 35 or at: jhart@cmcherald.com