Back in September, Borough Administrator Manny Parada warned the council that the borough might need to hire as many as 14 new employees due to changes in state regulations related to public water systems. Parada’s statements touched on two basic areas of water system oversight and played a role in the council’s decision to move ahead with studies required for evaluating a potential stormwater utility.
The stormwater utility is seen as a means of creating a revenue stream for projects involving a number of water systems and flooding issues, thereby relieving pressure on the cap-constrained municipal budget.
The two areas of concern in Parada’s discussions were the additional regulations associated with the Municipal Separate Storm Sewer System Tier A permit, known as the MS4 permit, and the expanded state oversight coming through the Water Quality Accountability Act. In both cases, regulatory changes are being driven by the state’s concern about climate change.
The added effort required by new state regulations – both those already in effect and those now open for public review – hit Stone Harbor when the borough’s flexibility under its municipal budget is constrained by the budget appropriations cap. In short, the borough has room under the tax levy cap – it can raise taxes – but it is limited by the appropriations cap, which impacts its ability to allocate funds.
Several efforts to increase budget flexibility have been initiated, but the problem in many places is timing. Studies are underway to potentially provide a foundation for a stormwater utility, but such a utility – even if all runs smoothly – would likely not be operational until 2026 or 2027.
Also, the state’s Local Assistance Bureau is conducting an analysis of potential shared service arrangements that could lower spending in the borough, but that effort also will take time. At an August council meeting, bureau consultants said it could take a year.
Parada’s statements at the Dec. 3 council meeting gave renewed visibility to the borough’s need to meet the new water system requirements.
Contact the reporter, Vince Conti, at vconti@cmcherald.com.
