Thursday, December 12, 2024

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Current Rate Structure Is Not Fair to Ratepayers

By McHale

To The Editor:
A letter was enclosed with the latest Sea Isle City Water and Sewer bill stating the “current rate structure distributes most of our costs evenly among all users, regardless of the volume of water they utilize” and that “usage does not affect our cost.” I disagree with the mayor and my colleagues on City Council that the current rate structure is fair to the ratepayers. I have voted against the last two rate increases because the current rate structure does not reflect the actual costs charged by the County Municipal Utility Authority (MUA) for treatment in the summer months.
The $3 million of MUA costs is charged by the amount of sewerage we send to their facility. If we reduce our flows, not only do our costs go down, but our percentage of the total MUA bill goes down. Common sense dictates that if the MUA charges $16.52 per 1,000 gallons of sewerage from June 15 to Sept. 15, and our city’s excess charge is $1.50 per 1,000 gallons, someone must make up the difference.
This is why a largest use customer, who used 2.2 million gallons last year, paid only $8,536. It would take approximately 57 average users (i.e. 38,000 gallons/year) to generate that amount of sewerage at a cost to them of $58,140 (57 x $1,020).
I agree that there are fixed costs associated with building, maintaining, and operating the Water and Sewer Utility. But the established rate should not subsidize our larger users at the expense of the low volume users. We must change our rate structure. Our surrounding towns of Cape May, Wildwood, and Avalon have a higher summer excess charge. Sea Isle City should follow their example. A fair rate structure should charge ratepayers according to the seasonal rate structure established by the MUA.
If we are to be a true “Green Community,” we also need to encourage all users to implement water conservation measures in existing buildings and mandate state-of-the-art conservation systems in all new construction. Water is our most important natural resource.
MICHAEL J. McHALE
Sea Isle City
(McHale is a Sea Isle City Councilman and former mayor)

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