4/26/17 Council Meeting

PERTH AMBOY – There was a discussion on Ordinance No. 4 Regarding the Water/Sewer Rates.

During the 4/26/17 Council Meeting, Resident Ken Balut wanted to know, “How much are the rates going up?”

Business Administrator
Adam Cruz

Business Administrator Adam Cruz responded, “$1.15 per month.”

Balut wasn’t satisfied with the answer, “What is the percentage rate that the utility will be going up?”

Cruz responded, “It’s based on the meter sizes.”

Balut continued, “We’re $80 million in debt to the water company.”

Councilman Fernando Gonzalez added, “If we had the old numbers, we could compare the percentage rates for this year.”

At this point, CFO Jill Goldy came up to speak, “I’m not aware that we owe the water company $80 million. I’m not sure I can answer that right now.”

The Guardian asked Councilman Fernando Gonzalez for clarification, “The contract with Middlesex Water ends in 2/20/2018. The balance of the debt owed on the contract with Middlesex Water is up until 2030. I haven’t heard any discussion on what we will be doing with the water department after next year (at the end of the contract).”

Cruz said, “We have put out bids.”

Councilman
Fernando Gonzalez

Gonzalez continued, “Fehrenbach (one of the former Business Administrators) felt we should not have put anything out for bid. I would like to have community discussions on this matter.”

Gonzalez also said, “Fehrenbach suggested if you (the City) bid for professional services, it will make someone money. We should look at all the information we have gathered.

Cruz answered, “I’m not a lawyer or an engineer, but we  need to have guidance on this.”

CFO Goldy was able to get information to answer some of the questions, “The rate increase of the water/sewer is 2%. The $81 million in debt is the water/utility, but this includes improvements done through the NJEIT (New Jersey Environmental Infrastructure Trust). The total debt of the water/utility is not all based on funding of the system. I don’t have the breakdown of all the components.”

Resident Ken Balut responded to remarks made, “That’s why we are $80 million in debt. Just tell the public the percentage rate of the water utilities.

When it came to voting on the ordinance, Fernando Gonzalez voted, “No.” The rest of the Council voted “Yes” to approve the Ordinance.