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West Cape May Taxpayers Concerned About Water Rate Hikes

By Jack Fichter

WEST CAPE MAY — The borough faces another hike in its already expensive water/sewer rates due to a likely hike from Cape May City which provides the water from its desalination plant.
A public meeting, requested by the West Cape May Taxpayers Association, has been scheduled for Feb. 10 at 7 p.m. at Borough Hall to discuss the situation. One year ago, facing a $210,000 shortfall in the borough’s water/sewer utility budget, rates were raised nearly 22 percent. It was the first increase in water rates in 11 years and sewer rates in 15 years.
At that time, Mayor Pamela Kaithern said the water/sewer rates should have been increased over the years to prevent the shortfall.
The taxpayers association presented a set of questions to be discussed at the meeting:
• How much water comes into West Cape May?
• How much is metered to the borough and how much to residents?
• What is the percentage of water or total gallons lost from the original intake from Cape May City on a monthly basis?
• Who pays for the water that is metered to the borough?
• Please explain individually the outflow of water to the community from the eight master meters listed on West Cape May’s monthly bulk sales report.
• How does the borough ascertain that everyone is metered?
• How many new water meters were purchased and what was the cost?
Also questioned, a line item listed as “Broadway” is only shown on the quarter billing and appears not to be included in total bulk consumption and why base water consumption went from 10,000 gallons to 6,000 gallons.
The taxpayers association is questioning why 75 percent of the community (775 water meters) is paying for 100 percent of the water consumption in West Cape May.
Last August, Cape May reported its water consumption in the city was down 8 million gallons from the same time in 2008, a year where water use fell drastically. As a result of low water consumption, Cape May City Council last year approved a water/sewer fee increase that raised rates for residential users about 25 percent.
Cape May’s water/sewer utility is dependent on consumption from customers to balance its budget. In 2008, the Cape May collected $333,000 less in water/sewer revenue attributed to fewer tourists and year round residents and shorter stays from second home owners.
The second year of declining water use in Cape May will necessitate another increase in water/sewer rates, expected in February.
With water consumption continuing to decline, Cape May’s water/sewer budget is short $282,000 for 2010.

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