WANAQUE BOROUGH
SEWERAGE AUTHORITY MEETING
MINUTES
Regular Meeting
January 8, 2008
The regular
meeting of the Wanaque Borough Sewerage Authority was held on January 8, 2008
at
Chairman Bolduc presided and read the following Sunshine
Statement:
“Adequate notice of this meeting has been provided by
mailing notice of this meeting to the Trends and Herald and News newspapers on
February 22, 2007 stating therein that this meeting would be held at 579
Ringwood Avenue, Wanaque, New Jersey including agenda therefore, and a copy of
this notice was posted in the Wanaque Municipal Building on February 22, 2007.”
ROLL CALL:
On roll call, the
following Commissioners responded:
Andrew R. Bolduc
Frank Covelli
John DiMeglio
Joseph Garland
Mark Reuter
Professionals Present:
Chuck Ferraioli, CPA
Jeffrey M. Kassover, Esq.
William J. Kelly,
Penny Schlagel, Office Mgr.
MINUTES:
The regular
meeting minutes of December 11, 2007 were presented.
No corrections or deletions.
Cmsr. Garland moved for the
approval of the above-mentioned minutes, seconded by Cmsr. Reuter.
On roll call all voted yes and the Chairman declared this
set of minutes adopted.
PUBLIC DISCUSSION:
Chairman Bolduc
stated to the audience that our Public Hearing on our 2008 Budget is scheduled
for 8:00 P.M., but if anyone in the audience has any other issue that they
would like to discuss, to please appear now in front the board.
Since no one entered any public discussion, the Chairman
closed this portion of the meeting.
6. CORRESPONDENCE:
None
7. NEW BUSINESS
None
8. UNFINISHED BUSINESS:
1. Future Anticipated Sewer Projects:
Mr. Kelly stated that he has met with Mr. White regarding
future sewer projects that each Authority would like to have done. Each list will now be created and forwarded
to Mr. Ferraioli.
9. PROFESSIONAL/COMMITTEE REPORTS:
A. William J. Kelly,
Mr. Kelly stated that last month he reported that this
station needs to be rehabilitated. A
proposal was received from Pumping Services for the amount of $17,000.00. Certain items may occur during rehabilitation,
and may require an additional cost. If
additional work is needed, the job should not cost more than $23,000.00.
2. Standby
Generator:
Mr. Kelly reported that three proposals have been received
for a new generator. The one that the
Authority now uses is over 25 years old and is now requiring constant repairs.
1. Magnum
Model $12,029.
2.
Mitsubushi $14,310.
3. No Name
Given $17,500. (R&J Controls)
Mr. Kelly stated that he now has to review these proposals
and will then give his recommendation at our next meeting.
Cmsr. Covelli
then stated that Mr. Kelly should check with Mr. Carroll since he is our
Purchasing Agent and see what we could get under our state contract.
Mr. Kelly further stated that Mr. Kostro has reported that
a diesel generator would be more efficient and since this equipment would need
to be kept inside, Mr. White of the WVRSA had no problem with our storing it in
the garage.
3.
Re: Meter
Mr. Kelly stated that all the rehabilitation work has been
completed on the metering manhole and now the meter is now sitting above flood
level. The meter is now operating
correctly so we should be able to obtain accurate readings. January 17th there will be a meeting with
North East Regional Sales to certify that the calibration of the
meter was done properly.
Cmsr. Covelli then asked if the Authority would be able to
go back and bill the college once we know the true readings if we have been
projecting them too low?
Mr. Kassover replied yes, we have an agreement with the
college with regard to this matter.
B. Charles
Ferraioli, CPA
1. Bonding:
Mr. Ferraioli stated that interest rates are coming down on
the treasury because the feds have been cutting rates. They still have not come down on the
municipals because of the insurance issues with AMBAC and NBIA. Once this issue is straightened out we should
then see interest rates on municipals climb like the treasury's are. Based on Friday’s unemployment and today’s
stock market it is pretty much a guarantee that there will be another rate
decrease by the Federal Reserve.
Therefore, it is a good time to put our finances together. The underwriter is also looking at our bonds
to see if it is going to pay to either refund them or re-issue them at a lower
rate. The WVRSA next call date on their
bonds is September of this year. There
would be a savings of $420,000.00.
C. Jeffrey M.
Kassover, Esq.
1. Legal
Notices:
Mr. Kassover stated that the requisite notices have been
published for both the connection fee and rate increase hearings.
2.
Valleyview at Wanaque:
Mr. Kassover stated that we have received the first
installment for the connection fee for this development, which was
approximately $76,000. on December 28th.
The Developer’s Agreement has still not been signed as of today with the
Borough of Wanaque.
Chrm. Bolduc thanked Mr. Kassover for all his hard work on
this matter as he ensured that the Authority received their first installment
by year’s end.
Mr. Kassover stated that it should be noted that his fees
for this matter are billable back to the developer.
Cmsr. Covelli stated that the Borough would be evaluating
the construction of the roads to meet their standards for acceptance under
municipal ordinance. On behalf of this
Authority, Mr. Kelly should be involved in reviewing the sewer pipes under the
road for proper installation, as the Borough Engineer should not be responsible
for this.
Mr. Kassover replied that in the developer’s agreement it
states that the sewer lines will be in accordance with approved plans subject
to the review and approval of our engineer.
10. FINANCE REPORT:
Cmsr. DiMeglio
moved a Resolution to approve the following bills for payment when the funds of
the Authority are sufficient to meet them, seconded by Cmsr. Garland.
Voucher 1 through 21
Auto Debit (Health) $32,515.66
Payroll & Processing 7,475.60
_________
TOTAL: $39,991.26
RESOLUTION
RESOLUTION REQUESTING FROM
THE REVENUE FUND TO THE OPERATING FUND BY THE WANAQUE BOROUGH SEWERAGE
AUTHORITY PURSUANT TO THE SECTION OF THE BOND RESOLUTION ENTITLED “RESOLUTION”
PROVIDES FOR THE ISSUANCE OF BONDS OF THE WANAQUE BOROUGH SEWERAGE AUTHORITY IN
OCTOBER OF 1987 AS AMENDED OR SUPPLEMENTED THEREAFTER.
1. The Authority
hereby makes requisition to the Trustee for funds from the Revenue Fund
established under a Resolution to be transferred to the credit of a Special
Account in the name of the Authority to be paid to the persons, firms or
corporations in the amount of $39,991.26 and for the purposes setforth herein
on the attached “Exhibit A”.
a. The Authority has incurred the obligations in the stated
amounts and that each item thereof was properly incurred in the operating and
maintaining the system and
has not been paid.
b. There has not
been filed with or served upon the corporation
named in such requisition or
if any such lien, attachment or claim has been released and discharged by the
Authority.
On roll call all voted yes and the Chairman declared this
Resolution adopted.
Meeting recessed at 7:54 P.M. until 8:00 for the Public
Hearing on the 2008 Budget.
Moved by Cmsr.
Covelli, seconded by Cmsr. Garland.
2008 CONNECTION FEE:
Mr. Ferraioli stated that according to state law the
calculation for a connection fee is based upon prior debt service that has been
paid by the local and regional sewerage authority, divided by the estimated
amount of users which at the end of 2007 was 4,316. users.
( Example Given: If
you own an empty lot and wanted to put a home on it, you would have to pay a “Sewer
Connection Fee”.)
The fee for 2008 would be $8,710.00, which represents an
increase of $400.00 from 2007.
Chrm. Bolduc then stated that this fee only effects any new
developer that may want to build in this town and not those residents who live
in town.
Cmsr. Covelli
further stated that the connection fee is an establishment of charging a new
user a proportionate part of the debt that was incurred to put in a sewer
system. The developer is paying his fair
share of an established infrastructure.
Cmsr. Reuter moved that:
WHEREAS, by virtue of N.J.S.A. 40:14A-8 (b) and (c), as
amended, the Authority is required to establish connection fees for connection
of properties to the Authority’s sewer system; and
WHEREAS, the Authority’s auditor has conducted an analysis
of the Authority’s financial records through the end of the fiscal year; and
WHEREAS, pursuant to N.J.S.A. 40:14A-8 (c) the Authority
held a public hearing on January 8, 2008, pursuant to notice duly published on
December 19, 2007 in the North Jersey Herald & News and on December 19,
2007 in the Suburban Trends, two newspapers of general circulation in the
Authority’s service area, and duly served upon the Clerk of the Borough of
Wanaque on December 13, 2007.
NOW THEREFORE, BE IT RESOLVED by the Wanaque Borough
Sewerage Authority:
1. The Authority
hereby makes the following findings:
Applying the statutory formula based upon the Authority’s
prior debt service, the actual number of service units on the Authority’s
system (4,316.), the maximum sewer connection fee chargeable by the Authority
is $8,710.00.
2. The Authority
hereby establishes a sewer connection fee of $8,710.00 commencing January 8,
2008, for each new service unit, plus the actual costs incurred by the
Authority with respect to the connection, including but not limited to
inspection and supervision.
3. A dwelling unit
intended for use by one family (including but not limited to a detached
dwelling, condominium unit, townhouse or apartment) shall be considered as one
service unit.
4. For all other
users, the number of service units to be attributable to a particular use shall
be calculated by dividing the estimated daily flow of water for such user by
230. The estimated daily flow of water
shall be calculated by the Authority following review of plans submitted by the
applicant; seconded by Cmsr. Garland.
On roll call, all voted yes and the Chairman declared this
Resolution adopted.
William Holt then approached the board and asked if the
public wanted to comment on the 2008 Connection Fee, when would they have the
opportunity to do so?
Chrm. Bolduc replied that as soon as we open our Public
Hearing on the 2008 Budget, anyone is free to make any comments they would
like.
PUBLIC HEARING:
2008 Budget
Before opening
the hearing, Mr. Ferraioli stated that the Dept. of Community Affairs has
approved the WBSA Budget, and now tonight we will be having the Public
Hearing. The budget for 2008 WBSA is
$200,000. higher then in 2007. Out of
this $200,000. $107,000. is going to the regional sewerage authority, as their
annual charge to this Authority has increased.
$25,000. is being used towards the Union Court Pump Station
upgrade. There is a $5,000. increase in
our debt service, and finally there was a shortfall of $50,000. in our 2007
budget.
The budget for this year calls for a rate increase of
$60.00 per year. This is the first rate
increase there has been in 13 years. The
last time it was raised was in 1995.
Unfortunately, there have been revenues that we have been anticipating
coming in and since they didn’t we now need to have a rate increase. The projects are
Mr. Ferraioli then continued by stating that from 2004
through 2008 this Authority’s Budget has increased by $510,000. Out of this amount, $410,000. has been paid
to the regional sewerage authority.
$50,000. is from the deficit in our 2007 Budget. Salaries from 2004 through 2008 on a yearly
basis are only up 2%. The Authority has
downsized its operations. There is now
only one employee and the other two have been transferred to the Borough of
Wanaque through an inter-local agreement whereby we pay for most of their
salary. One employee was laid off, and billing only was then transferred to the
borough tax department at a cost of $8,000. per year.
When you look at the regional budget from 2004 through
2008, their budget has increased by $603,000. due to increases for power,
sludge removal, etc. Power alone has increased $80,000. Salaries are up $130,000. or 4.9%. Additional personnel were added for a third
shift. Debt service has increased
$50,000. Chemicals are up by $40,000.
Chrm. Bolduc stated that having no increase in our sewer
rate for 13 years is pretty remarkable.
Other sewer authorities around the state have had significant
increases. This commission is not happy
with this increase at all. All of us
sitting up here tonight pay the same rate you do. There are people out in the audience tonight
that are going to approach us and say that we heard the sewer rate was going
down once Pulte came on. Not one person
on this board ever said this. Other
officials in town made this representation, but it must be made clear that no
one on this board did. Please feel free
to take those people to task who made those representations, but it is none of
the people you see sitting here tonight.
Mr. Kassover then stated that Mr. Ferraioli should explain
how the state approves a budget.
Mr. Ferraioli then explained how the state approves all
municipalities, schools, etc. Once a
budget is introduced, it is then sent in for their approval. Their approval means whether or not you
comply with the state statutes. Authorities are allowed to operate in deficit,
but you have to pay that deficit off. If
more users had come in 2006 and 2007 there would have been no deficit, but
because they did not, we have a deficit.
Therefore, it was my recommendation to raise the sewer rates.
Mr. Kassover stated that it should also be noted that the
state statute states that if the proposed budget does not match the anticipated
revenue, that the state does have the right to increase the rate in order to
generate the revenues to match the budget.
You cannot bond for operating expenses, only for projects.
Cmsr. Covelli then stated that he would like a moment to
talk about the regional authority because of its direct impact on the local
sewerage authority. The power charge of
$105,000.00 is only a one-year increase.
Therefore, the WVRSA will be reviewing a proposal to start evaluating
our ability to bulk purchase power in order to reduce the cost of energy. Keep in mind, this is the third largest line
item in the regional budget. Also, the
sludge removal costs have gone up dramatically, but the Authority has been able
to negotiate a favorable contract with Passaic Valley Sewer Commission, which
is where the sludge is brought. The Authority also looked into thickening the
sludge and disposing of it in the form of bricks, which it could, then be sold
for energy use. However, this would not
be a financially viable solution. Last
but not least, everything in the operation of the plant is petroleum
based. ( Which means the chemicals used
to treat the effluent to bring it to DEP standards before it is released.) The cost to treat the waste has gone up
dramatically. The fuel surcharges have
gone up as well for the delivery of these chemicals.
Chrm. Bolduc then stated that if anyone from the public would
like to address the board at this time to please do so.
1. Paul Farrantino
8323
Mr. Farrantino stated that he knows that everything has
gone up in cost, but the sewer rate base has also increased.
Mr. Farrantino then read the following statement:
“I have two questions tonight regarding the $60.00 rate
increase.
The first question is WHY? The second question is WHY NOT?
Why do you need to increase fees by any amount when you
collected so much more in fees now then you did one year ago, and so much more
in fees a year ago then you did the previous year?
In 2005, there were approx. 3,200 residential units, at
$800 each, hooked up to the system equaling $2,560,000. in gross income to the
Authority.
Now at the beginning of 2008 there are approximately 3,800.
residential units ( the correct # of units is 4,200.) hooked up, equaling
$3,040,000. gross income. (Amount gross income is even much higher). This is an annual increase of 18.75% or some
$480,000. over 2005. This amount more
than covers $500,000. increase since 2004 that Mr. Ferraioli mentioned.
Has the cost of processing human waste gone up that high? I
doubt it very much.
Why not, lower the rates instead? Based on the examples
given it seems that there is much more income to the authority then there would
have been if not for the recent adage of newly constructed homes. All things considered, it is absurd that your
are contemplating raising rates then lowering them.
In a short time the Authority can count on an additional
265 homes at Wanaque Reserve as well as 85 homes from the Candle Factory
Project.) (amount of homes
underestimated.) This will add another $280,000. gross income to the Authority,
an astonishing increase of 29.5% over fees collected in 2005.
I haven’t even considered income from the septic tanker
trucks, which is considerable. These
trucks pick up from residential homes that do not have municipal sewerage
hookups. It is my understanding that
homes with septic systems have to be cleaned out approx. every 5 to 7 years at
a cost of $350.00 to $600.00. This means
that these homeowners are paying a lower
fee over 7 years then we are
paying in one year. Why isn’t the
Authority considering raising the trucker rates? Wouldn’t this be a fair way of
leveling fees amongst all users of the system?
The Authority won’t do that because they are afraid of
losing some trucker business. Shouldn’t
it be a primary concern of a municipal authority to do the right and honest
thing for the citizens of the town they service rather then the private
(trucker) industry?
This question of increasing fees brings up so many other
questions, such as where has all the money collected over the 25 years the
WVRSA has been in business gone?
There haven’t been any major upgrades to the system until
just recently. The residential &
commercial developers for the most part paid for those upgrades. So where has all the collected fee money gone?
Future and past construction costs is normally paid through
a bond, therefore not affecting the normal operating budget. So where has all
the collected fee money gone? It didn’t
go to pay off the bonds. The Authority
is still millions of dollars in debt from those bonds.
So the real question is why is this Authority in a position
to ask for an increase in fees to make up a budget gap, when it should be
asking how did we get to this point to begin with? Where has all the collected
fee money gone? Perhaps an external audit would help answer that question and
when the auditors find that fee money maybe then you will give every homeowner
in the Borough of Wanaque the fee reduction we so rightfully deserve.
I haven’t even considered income from old, new or soon to
be developed commercial hookups“.
Thank you . . .
Mr. Ferraioli then replied that in the budget of this
Authority and the Regional Authority there are bond payments that must be
paid. The revenue in 2005 from all sewer
users was $3,180,000. The revenue from
sewer users in the 2008 budget is $3,753,000.
Mr. Farrantino then replied that he believes that Mr.
Ferraioli’s figures are wrong.
Mr. Ferraioli stated that his figures are absolutely right.
Mr. Farrantino replied that he does not understand, unless
there is a lot of money that has not been collected.
Mr. Ferraioli stated that our collections are very good. If users don’t pay, they go to a Tax Lien
Sale.
Mr. Farrantino then stated that 489 units have been brought
in under the Pulte Project. This income
alone is bringing in over $400,000. a year.
Mr. Ferraioli replied that is correct. But as he has previous stated the WVRSA
budget from 2004 to 2008 is now $600,000. higher.
Mr. Farrantino then stated that income that has come in
over the past two years is $800,000. Something is wrong here.
Chrm. Bolduc stated that our budget is audited by the
state. Mr. Ferraioli is a premiere
professional in terms of his job. Mr.
Ferraioli has quite the reputation throughout the State of
Mr. Farrantino replied that he is not questioning Mr.
Ferraioli’s reputation, it is confusing to the residents who do not understand
why we need a rate increase when we know that there has been so much new income
generated.
Chrm. Bolduc stated that anyone is welcome to have any
Budget from any year that they are looking for.
If anyone would like to hire there own accountant to audit our records,
please feel free to do so.
Mr. Farrantino replied that he wishes he could afford to do
this because he would.
Chrm. Bolduc stated that everyone sitting on this board has
the same interests that you do unlike the WVRSA that doesn’t, since it is made
up of members from other towns and they can vote how to spend our money.
Mr. Farrantino asked if Wanaque has any control on how our
money is spent?
Chrm. Bolduc replied that Wanaque has two votes. Ringwood and
Cmsr. Covelli stated that he would like to put on the
record that Mr. Ferraioli is a licensed public auditor for the State of
2. Ted Roberto
8101
Mr. Roberto stated that he is a life long resident and it
amazes him that the vision of lower sewer rates and taxes were going to be one
main reason why Wanaque Reserve was developed.
Officials in this town, said the sewer rate was going down.
Chrm. Bolduc again stated that no one from this Authority
made representations to the public that the sewer rate was going down. You may look at our minutes or any newspaper
and you will not find one commissioner that stated the rate was going down
because of the Pulte Development. Other
officials may have said this, but we did not.
Cmsr. Covelli replied that when these statements were made
Pulte was supposed to have over 1,500. units, before a shovel was put in the
ground, it was cut in half by the DEP.
The golf course was removed.
Also, Mr. Ferraioli stated before that a number of projects have not
come to life.
If anyone today tried to sell
his or her home, it would not be easy compared to two years ago. Furthermore, there are not too many towns
where their municipal taxes have not gone up in two years. The Borough of Wanaque is one of the towns
that have not had a municipal tax increase in two years. I am proud to live in
this town. The sewer rate has not gone
up in 13 years.
Mr. Roberto replied that he understands everything that
Cmsr. Covelli is saying, but the sewer rate in this town has always been
high. Secondly, there is a huge
development that brought in a lot of money to this town. This money should have been used to offset
costs, and the plant upgrade should have been bonded. There will be 755 new units at Wanaque
Reserve.
Chrm. Bolduc
replied that there are not 755 units today.
Cmsr. Covelli
also stated that “will be” does not pay the bills today Mr. Roberto. We anticipated a “will be” last year and that
is why we have a deficit in our budget.
Mr. Roberto then replied that this town has already raised
the water rates, now the sewer rates, what next? People are not going to be able to afford to
live in this town!
3. Susan Lawson
Ms. Lawson stated that this board is very adamant about
saying they never said the sewer rate was going down, but yet other officials
of the town did make this statement, and yet no member of this board did not
refute them. Why is that? Since this
board made no rebuttal, the residents just assumed that the officials were
right, our bill was going down.
Chrm. Bolduc replied that he wouldn’t say that other
officials in town made this statement, but this commission didn’t make
them. Cmsr. Covelli stated previously
that the Pulte Development was cut in half by the DEP. This statement was made when the Pulte
Project had 1,500. users.
Ms. Lawson replied that regardless of the size of Pulte,
once this statement was made, and you knew it was not true, someone from your
board should have told us. There has to
be a better way! Can’t you do something
with the trucker’s rate? Also, it should be reflected that Mr. Ferraioli is a
very well respected man.
Cmsr. Covelli stated that since this is the second time
tonight the trucker’s rate is being brought up, he would like to say that the
rates at the regional for the truckers have been increased. However, you must keep in mind, these
truckers can go elsewhere. Our plant has
to keep the rates competitive with the surrounding plants. The rates went up about six months ago. Everyone knows that in his or her job, they
have to stay competitive or you will not have a job. It should also be noted that we charge more
than the Passaic Valley Regional Sewerage, which is the 3rd largest plant in
the
4.
Mrs. LaNeve stated that she would like to go back in
time. She moved into this town in
1957. At that time, I resided in Haskell
and this was the only area that had sewers.
It cost $33.00 a year for sewerage.
I have worked very hard in this town in many different capacities. Also, I was on the Advisory Board for the
sewer commission before the sewerage authority was even formed. The decision reached back then was that it
was not feasible for sewers as we knew rates would reach $1,000. Everything that could possibly be done to
stop sewers was done. Residents were
comfortable with their septic systems.
The politicians at the time said that our town needed sewers because the
law says we have to. There are now many
seniors in this town who have lived here our entire lives and have raised our
kids in this town. We have helped this
town grow! Now you are driving us out of
our homes! I pay more in taxes today
then I paid for a mortgage. There has to
be a way out of this mess because you’re driving the senior citizens out of
town away from our kids. I don’t doubt
the economics or Mr. Ferraioli’s findings.
However, its time for all borough agencies to start giving back to the
seniors. We don’t need a fancy new
municipal building! This town could have
had the land for a new municipal building for free several years ago. Maybe the billing could be changed based on
your water usage, or maybe a percentage discount, every single agency in this
town should be giving seniors a discount, as we helped build this town.
5. Frank Malson
Mr. Malson asked if the commercial accounts are going up as
well with the $60.00 charge?
Mr. Ferraioli replied yes.
Mr. Malson stated that there are 4,315. edu’s and the
budget went up 200,000. in total, then $60.00 x 4,000 is $240,000. yet we are
now going
to be collecting $40,000.
more then what we need. Why?
Mr. Ferraioli replied that the rate increase would be for
2008 and 2009. After 2009, we are hoping
that the rest of Pulte is on and, the Candle
Factory development is done,
which will hold this rate even longer than 2009.
Mr. Malson stated that the surplus funds would be carried
over for 2009 so that there will be no additional rate increase.
Mr. Ferraioli replied that the 2007 audit is not done
yet. We have been carrying a deficit
with the hopes that the rest of anticipated users would come on. With the housing market today, we are not counting
on a lot of additional users for 2008.
Mr. Malson then asked how many users from Pulte are now
online?
Mr. Ferraioli replied 489.
Mr. Malson then asked when the bonds would be paid off.
Mr. Ferraioli replied 2022.
The plant is going to get older.
DEP will change their regulations, and you will have to bond to make
upgrades. There is not one sewerage
authority that I represent that is debt free.
Mr. Malson asked if Ringwood and
Chrm. Bolduc replied that 15 residents from Ringwood that
are connected would pay the same as anyone else does.
6. Jim Avale
Mr. Avale asked what the plant capacity is?
Cmsr. Covelli replied that the plant is rated at 1.25
million gal. per day. Mr. Avale replied
that is not what he is asking, what is the plant capacity as of now?
Cmsr. Covelli replied that it fluctuates from a low of
750,000. and it goes as high as 1.5 million depending on the ground water,
weather, etc.
Mr. Avale then asked how much money Pulte gave to upgrade
the plant?
Cmsr. Covelli replied that Pulte did not give any
money. Pulte had to pay a connection fee
like any new applicant. Based upon the
number of unit’s (755) that was then multiplied by the connection fee for
each EDU. (equivalent dwelling unit)
Mr. Avale then asked where did the connection fee money go?
Cmsr. Covelli replied that the money was used to upgrade
the plant, which was paid for in cash.
There was no debt incurred.
Chrm. Bolduc also stated that the Pulte Connection Fee did
not cover some of the expenses for the upgrade.
The Pulte Connection Fee paid for about 90% of the plant.
Mr. Avale then asked if Valleyview (Candle Factory
Property) has paid their connection fee yet?
Cmsr. Covelli replied we just received a partial payment of
$75,000. which has already been implemented towards our 2007 deficit.
Mr. Avale then asked what is the total connection fee due
on Valleyview?
Cmsr. Covelli replied about $300,000.
Mr. Ferraioli stated that the public should know that there
was a swap in user connection fees from another development that Valleyview
acquired 89 units. Therefore, the 89 units had a connection fee of $825.00, and
then the remaining 25 were based on the 2007 ($8,310.) connection fee rate.
Mr. Avale then asked if the
Cmsr. Covelli replied that the developer kept those
connections alive from the homes that were located initially on this
property. Anyone who disconnects due
to fire, etc., has the option to pay a $75.00 quarterly rate to hold your
connection fee. Otherwise, you have to
pay the new connection fee rate for that year when you come back. I believe this developer did purchase an
additional two units.
7. John Maiello
Mr. Maiello asked if all the infiltration is the Haskell
Section has been corrected, as a lot of those lines were initially made of
concrete.
Chrm. Bolduc replied that a number of leaks have been
repaired. We do have plans in our
capital improvement project with regard to spending
more funds to find the leaks in the system.
Mr. Maiello then asked if that the regional were dissolved,
how much money would we save?
Chrm. Bolduc replied that even though this question does
not have anything to do with our budget, he would say that no one on this board
has been in favor of a regional since day one.
I have been asking the mayor and council for years to see what can be
done to dissolve them. Each board has
his own attorney, engineer and auditor, so if it were one, I am sure you would
at least save those fees. I don’t think
there would be a 50% in savings, but maybe $70,000. to 80,000. However regarding the spending issues at the
regional would then be made by Wanaque residents only and not by Ringwood and
8. William Holt
8319
Mr. Holt stated to the board that if a rate increase is
justified, he will be behind it 100%.
Sometimes, people hear different things that are being said. I personally did not hear Mr. Farrantino
attack Mr. Ferraioli’s ability.
How much anticipated revenue are you expecting for 2008?
Mr. Ferraioli replied that the budget calls for
$3,893,000.00. $40,000, is from interest
on investments, $100,000. from connection fees we hope to collect, and from
sewer users $4,753,483.
Mr. Holt then stated that last year’s budget had
anticipated income, and this year you don’t is that correct?
Mr. Ferraioli replied yes, for the last 2 years.
Mr. Holt stated that Cmsr. Covelli said earlier that he
couldn’t say the trucks make a profit, they bring in revenue instead. Yet in another statement, Cmsr. Covelli said
that if the trucks were not going to the regional, our fees would have be
$300.00 a year higher then now. If this
is the case multiplied by 4,316 units that would mean that the trucks bring in
over a million dollars in revenue at the regional. However, previous statements made were that
the trucks bring in $900.000. So, I
question Cmsr. Covelli’s statement and would like to know where did this money
go? With all the new connections to the
system, they should cover the increases at the plant. I know Mr. Ferraioli has the numbers, and
trust that he is crunching them properly, but it seems like we are bringing in
so much money. Where did this money go?
9. Dave DiSilva
Mr. DiSilva stated that going back prior to the conception
of Wanaque Reserve and then go forward to 2002, 2003 and 2004 when the
connection fees from the Pulte Project paid for the upgrades to the plant. What changed from 1997 through the
renovations to the plant to handle the extra capacity today? What changed between the late 90’s and today
to increase our costs so much?
Cmsr. Covelli replied that the plant was upgraded not
expanded.
Mr. Ferraioli stated that in 1988 there was a public
hearing at the high school. At this time
we were projecting that the sewer rate would be $1,000. a year. So far, we haven’t reached that amount. The settlement money we received by Ringwood
and West
Chrm. Bolduc stated that 92% of the WBSA budget is passed
on to us from the WVRSA.
Mr. DiSilva then asked if there was no development from
1999 until now would we be in a catastrophic emergency with our sewer rate
being triple what it is now.
Chrm. Bolduc replied yes we would because the sewer plant
was 20 yrs. old before the upgrade. The State
of
Mr. Ferraioli stated that if we did not have Pulte our
rates could easily be up $200.00.
Mr. DiSilva asked what is the amount of debt that each
authority must pay?
Mr. Ferraioli replied at the WBSA it is $990,000. and the
WVRSA is $1,500,000. The debt owed at the WBSA as of 12/31/06 is $7,065,000.
plus interest and for the WVRSA it is $14,999,000.
Mr. DiSilva then asked if the Authority ever did refinance
its bonds in 2007?
Mr. Ferraioli replied no, not yet. We are trying to have a bond sale at this
Authority for the infiltration work and some of the capital improvement
projects. At the WVRSA we are looking to
do some construction projects. We are
trying to refinance as much as the old debt as possible, and yet keep our line
item for debt services the same. The
goal is to reduce our current debt service, bring on new bonds for capital
improvement, but keep the total debt service appropriation the same as it is
now.
Mr. DiSilva then asked that the connection fee for the
Valleyview Project was the connection fee rate negotiated by this board?
Mr. Kassover replied no.
A developer sold his EDU’s to another developer. There is an agreement from 1987 called the
Developer’s Agreement, and after reviewing it, a developer has the right to
sell his EDU’s to another developer.
Mr. DiSilva then asked if the Stephens Lake Project was
included in the 2007 Budget?
Mr. Ferraioli replied no.
Mr. DiSilva stated elected officials made statements that
our sewer rate was going down, and why I do appreciate the board’s position on
this issue, I think someone on this board should of said something in response.
Chrm. Bolduc replied that he did say to other officials
that it is unwise to make representations based upon future expectations that
are unknown. It is not for us to
speculate why it was said, you need to ask who said it and why they did.
10. Kenneth
Ambruster
Mr. Ambruster stated that it is just he and his wife that
live in his house. Why hasn’t it been
investigated to bill on water usage instead of a flat rate? Those with kids should pay more. Between the tax increases, utility increase,
I have to seriously consider moving out of town.
Mr. Kassover replied that the sewer charges have to be
uniformed throughout a municipality.
Mr. Ambruster then asked why the sewer charge is not in our
tax bill so we can at least write if off as other towns do.
Chrm. Bolduc replied that you are not suppose to put your
sewer charges in our taxes, unless the entire municipality is connected, which
it is not in the Borough of Wanaque, due to exemptions for rock blasting, homes
that sit more then 200 feet back, etc.
11. Fred LaNeve
Mr. LaNeve stated that regardless that the residents object
to the increase, you are raising our sewer tax.
You have stated that you are raising connection fees, but what else is
being done to bring in more revenue?
Cmsr. Covelli replied that we use septage receipts to
offset the costs, as well as looking into ways for bulk purchasing to reduce
the costs at the plant. When I came on
to the local authority, we changed insurances and dramatically reduced the
cost.
Mr. LaNeve stated that it is hard for senior citizens to
come up with this money. There has to be
away to give them a break. People had no
faith in sewers when they had that big meeting at
Cmsr. Covelli replied that he credits his predecessors who
have sat on this board before him, as there has not been a rate increase in 13
years. There isn’t much that has not
gone up for 13 years.
12. Ted Roberto:
Mr. Roberto stated to Cmsr. Covelli that he explained the
tanker trucks purposes very nicely.
However, for those of us that live at Wanaque Reserve we pay a heavy price for these trucks coming and
going to the plant. We have to watch 25
to 35 trucks coming and going everyday.
Chrm. Bolduc replied that this is an issue for Mr. Roberto
to discuss at a regional meeting, as this Authority has no control of this
matter.
13. Grace Maiello
Re:
When the regional was built, it cost $17,000,000. After all these years, we are now
$22,000,000. in debt how come.
Mr. Ferraioli replied this was just for the plant, and you
have to include the lines, which were $7,000,000. million. Yes, it is $22,000,000. after the grant.
Since no one from the public entered any more discussion,
the Chairman closed this pubic hearing.
2008 BUDGET:
Cmsr. Reuter moved that:
WHEREAS, the Annual Budget and the Capital Budget/Program
for the Wanaque Borough Sewerage Authority for the fiscal year January 1, 2008
and ending December 31, 2008 has been presented for adoption before the
Commissioners of the Wanaque Borough Sewerage Authority at its open public
meeting on December 11, 2007; and
WHEREAS, the Annual Budget and the Capital Budget as
presented for adoption reflects each item of revenue and appropriation in the
same amount and title as set forth in the introduced and approved budget,
including all amendments thereto, if any, which have been approved by the
Director of the Division of Local Government Services; and
WHEREAS, the Annual Budget as presented for adoption
reflects Total Revenues of $3,893,482. Total Appropriations, including any
Accumulated Deficit, if any, of $3,893,483. and Total Unreserved Retained
Earnings utilized of $-0-;
and
WHEREAS, the Capital Budget as presented for adoption
reflects Total Capital Appropriations of -0-.
NOW, THEREFORE BE
IT RESOLVED, by the Commissioners of the Wanaque Borough Sewerage Authority, at
a open public meeting held on January 8, 2008 that the Annual Budget and
Capital Budget/Program of the Wanaque Borough Sewerage Authority for the fiscal
year beginning January 1, 2008 and ending December 31, 2008 is hereby adopted
and shall constitute appropriations for the purposes stated; and
BE IT FURTHER RESOLVED, that the Annual Budget and Capital
Budget/Program as presented for adoption reflects each item of revenue and
appropriation in the same amount and title as set forth in the introduced and
approved budget, including all amendments thereto, if any, which have been
approved by the Director of the Division of Local Government Services,
Seconded by Cmsr. Covelli.
On roll call all voted yes and the Chairman declared this
Resolution adopted.
SCHEDULE OF RATES FOR
2008:
Cmsr. Reuter moved that:
WHEREAS, by virtue of Section 11 of the New Jersey Local
Fiscal Control Law, N.J.S.A. 40A:5A-11 the final adoption of the Authority’s
annual budget is contingent upon approval by the New Jersey Local Finance
Board; and
WHEREAS, under N.J.S.A. 40A:5-11 (d) the schedule of the
Authority’s rates and charges must evidence sufficient anticipated revenues
from such rates and charges, together with all other anticipated revenues, to
satisfy all financial obligations of the Authority, including but not limited
to debt service, operating expenses, reserves, capital outlays and contractual
obligations; and
WHEREAS, as determined by the Authority’s auditor, the
existing rate schedule would not generate sufficient anticipated revenues to
meet such obligations; and
WHEREAS, the Authority had determined that a rate increase
is required in order to generate sufficient anticipated revenues to meet such
obligations and to obtain Local Finance Board approval of its budget; and
WHEREAS, pursuant to N.J.S.A. 40A:14-8, a legal notice of
proposed increases in the Authority’s sewer service charges was published on
December 19, 2007 in the Herald & News and Suburban Trends, the Authority’s
official newspaper, and served upon the Clerk of the Borough of Wanaque on
December 13, 2007, and posted in a public place, to wit: the Office of the
Authority, on December 13, 2007, all in compliance with the notice requirements
under said statue; and
WHEREAS, the Authority did, on January 8, 2008, pursuant to
such legal notice, hold a public hearing as required by N.J.S.A. 40A:14-8;
NOW, THEREFORE, BE IT RESOLVED by the Wanaque Borough
Sewerage Authority:
1. The Authority
hereby adopts the following revisions to its schedule of rates and charges:
a. Resident
User: $860. per annum, payable quarterly
in the amount of $215.00.
b. All Other Users:
$10.75 per thousand gallons of water used, payable quarterly. The minimum quarterly charge shall be
$215.00.
c. All charges and
fees not inconsistent with the foregoing shall remain in full force and effect.
2. The foregoing
revisions shall be effective upon adoption of this Resolution.
3. The effective
date of this Resolution shall be January 8, 2008,
Seconded by Cmsr.
On roll call all voted yes and the Chairman declared this
Resolution
adopted.
LATE INTRODUCTION OF THE
2008:
Cmsr. Covelli
moved that:
WHEREAS, the Local Authorities Law requires every Authority
to transmit three certified copies of the Budget to the Director of Local
Government Services at least 60 days prior to the end of the current fiscal
year; and
WHEREAS, the Wanaque Borough Sewerage Authority Budget for
the fiscal year ended December 31, 2008 was due on November 1, 2007;
NOW, THEREFORE BE IT RESOLVED, by the Commissioners of the
Wanaque Borough Sewerage Authority that the reason for the late introduction of
the Authority Budget for the fiscal year ended December 31, 2008 is that the
Authority’s estimated revenues and appropriations were not known at the time
the Budget was to be legally introduced.
Seconded by Cmsr.
On roll call all voted yes and the Chairman declared this
Resolution adopted.
ADJOURNMENT:
Cmsr. Covelli
moved for the adjournment of this meeting, seconded by Cmsr. Reuter.
On roll call all voted yes and the Chairman declared this
meeting adjourned.
____________________________________
Andrew R. Bolduc, Chairman