Residents to See 4 Percent Increase in Sewer Rates in 2012 and 2013

The has passed a motion that sets the sewer rates for the next two years, increasing the rates by 4 percent annually.

The decision wasn’t without some controversy, however, as potential increases in the mill rate as a result of revaluation and differences in opinion on how to address the need for sewer rate increases led to a6-3 approval of the motion, which was split along party lines.

“Speaking on behalf of the (Democratic) caucus, we are not in favor of rate increases,” Palmieri said on Monday. “We heard tonight that this is a tough revaluation year and coming off past four years with raises of 20 percent and 15 percent, now is not the time to raise them again.”

Palmieri, the minority leader on the council, and fellow Democrats opposed the motion. Republicans, led by Sewer Committee Chairman John Dobbins and Council Chairman Edward Pocock III, passed the motion calling for the 4 percent increases in 2012 and 2013. Combined the two increases will amount to a total 8.16 percent increase over the two year period when compared to current rates.

Republican Al Natelli Jr. said an increase in rates isn’t something the council members wanted to do, but it’s necessary to avoid large increases in the future.

“I think it’s important to understand that the rates need to go up yearly rather than have spikes we’ve talked about the past four years,” Natelli said. “A four percent per year does allow people to plan ahead. Over the past couple years, raising rates by 15 to 20 percent, no one want to see that again.”

Ratepayers have seen dramatic increases since 2007, due in part to a lack of a strong reserve fund and dramatic cost increases associated with the denitrification plant requirements. The town increased rates by 20 percent to compensate in 2008, 2009 and 2010 and by 15 percent in 2011.

But these costs have taken a toll on local taxpayers, Palmieri said, and anticipated when the grand list is released later today, he believes it would be better to wait one year before increasing sewer rates again.

Democratic leaders proposed moving the entire increase, 8 percent, to 2013 in order to give taxpayers a chance to absorb some of the increased costs that will come with the grand list changes. Palmieri said revaluation is already hitting the local economy and particularly the taxpayers hard this year.

“We fully agree there is a need to look to the future, but we also don’t know what is coming forward,” he said. “We don’t know what the final phosphorus regulations will be yet or what that will cost. We need to take a closer look at what lies ahead.”

Democrats also presented a second proposal that would have delayed a vote on rate increases, instead having a study done to look at long-term needs and studying pump station needs before making a decision.

Pocock said he is fully in support of the study, but said it’s not prudent to let costs build up and the reserve dry out again only to have larger increases in the next five to ten years. He felt the four percent increase was not only manageable, but proactive to prevent extensive future increases.

“This isn’t a measure laying gold bricks at the sewer department. No one is suggesting that. This is to keep us where we are at right now,” Pocock said.