West Cape May Hikes Water/Sewer Rates

WEST CAPE MAY — Borough Commission approved water and sewer rate increases April 22 designed not to penalize customers who use smaller amounts of water.
Resident Joan Hodges asked why 6,000 gallons was selected as base amount for water bills, reduced from 10,000 gallons.
Auditor Leon Costello said the figure was selected to conserve water and raise enough dollars to fill a $210,000 shortfall in the water/sewer budget in the fairest possible way by using a combination of base rate and excess water usage.
Mayor Pamela Kaithern said the minimum quarterly charge for use of up to 6,000 gallons would increase to $85.
For each 1,000 gallons of water used in excess of the minimum quarterly allowance, the rate would rise from $7.20 to $9.50.
Kaithern said about 60 percent of the water users in the community are using 6,000 gallons or less.
She said the base rate would need to be raised to around $92 per quarter to facilitate the amount of money to fill the shortfall without a change in the excess water use billing.
Hodges asked what percentage of the 60 percent of water customers that do not exceed 6,000 gallons use per quarter were full time residents. Kaithern said the borough was unable to differentiate between full time and part time residents as water customers.
Commissioner Peter Burke said many of the water customers that fall within the 6,000-gallon use range were elderly persons at risk of not being able to continue to live in West Cape May due to the pressure of taxes.
Kaithern said the rate increase amounts to a user fee, if you are using the water, you are paying the fee.
Costello said three-quarters of the water/sewer fees were paid to the City of Cape May and County Municipal Utilities Authority for water and sewage disposal.
Hodges said she was concerned the higher water/sewer rates would place an undue hardship on young families in the borough because they cannot cut back to 6,000 gallons of use. She said those families may leave the borough.
Kaithern said if the borough raised the base rate from $68 to $92 per quarter and sewer minimum from $90 to $125, the average person’s bill, for those using 10,000 gallons or less, would see a 37 percent increase.
Hodges said if the minimum is dropped to 6,000 gallons, it amounted to an 88 percent increase in bills. Kaithern said if the higher end users are not paying for water they are consuming, “then someone else is.”
Costello said borough commission had the option of changing rates next year if the rate hike does not work as anticipated.
Kaithern said the rate hike would increase her home water/sewer bill by 44 percent, if she uses the same amount of water as she has in the past. She said if only the base rate was raised and the minimum remained at 10,000 gallons, she would save $46 per year but someone would pay to make up the difference.
“If I’m using it, I’m going to pay it, I don’t want it on someone else’s back,” she said.
Kaithern said the increase “snuck up” on the borough while the water utility was flush for 11 years and the sewer utility even for 15 years with no rate increase.
MUA and Cape May rates have been rising coupled with a reduction in use due to the downturn in the economy, she said.
Costello said for the first time in the 33 years he has been auditing towns, has he seen a large water/sewer rate increase in every town he serves. He said the borough has 775 water/sewer billing units and each person would need to be billed a flat $272 a year to raise $210,000 if that method had been chosen.
He said the water/sewer ordinance would have everyone paying an additional $158 per year and excess use will make up the difference.
Resident Mike Behn said a press report said the rate increase would total 22 percent. He said it was more like 80 percent.
Kaithern said 80 percent was not correct and the increase would be different for each customer.
Costello said the base rate for water and sewer will be $800 per year.