By AUBRIE GEORGE
The Moorestown Sun
At a final budget meeting held last week, council members asked township officials to prepare a budget with a flat tax rate and to look for additional savings that could be realized through labor negotiations.
At last week’s meeting, Mayor Dan Roccato noted that a memo from Township Manager Chris Schultz, who was not present at the meeting, suggested that two of the township’s collective bargaining units might be open to discussing their contracts.
“It looks like, from Chris’s memo, that at least two unions have said not ‘no’, but ‘let’s hear more,’” Roccato said.
Roccato said he was optimistic that talks with the unions could be fruitful, much like the recently re-negotiated contract with the police union.
“We had a terrific process with the police. The result that was that we had two parties come together and really, I think, advance the cause,” Roccato said. “So the invitation is still here in the strongest terms.”
Council also discussed ways the township could close an approximate $600,000 hole in the utility budget, which has been caused by a wet year, the state of the economy and the cost to purchase water from the New Jersey American Water Company, which the township is required to do by law.
At a previous budget meeting, township finance director Tom Merchel had suggested that council adjust the water consumption requirements for the three tiers that quarterly billing for water is based on. Merchel suggested council increase the rate for only the second tier so that it’s closer to the rate the township pays to New Jersey American Water, $5.25 per 1,000 gallons, leaving the rate for the bottom and top tiers as they currently are.
Currently the township sells water to residential and commercial properties in the middle consumption tier at a rate much lower than the rate they pay to New Jersey American Water, about $3.83 per 1,000 gallons, producing a loss for the township.
Council was in agreement that something should be done to make up for the loss.
“If we’re buying water from New Jersey American Water for $5.25, we clearly can’t sell it for $3.83,” Mayor Dan Roccato said at the meeting.
Merchel said if an adjustment were done, discounts for seniors, non-profits and the school system would remain in place.
At a previous meeting, council asked Merchel if he could generate a report to show how many homeowners fall in the lowest consumption tier and how many homeowners could be bumped up if an adjustment to the tiers were made.
Last week, Merchel said he would most likely not be able to do so because the data system used to show that account information is antiquated and incapable of generating such reports.
Councilman Greg Gallo said he’d like to have a little more information before considering any type of adjustment in order to make sure council wouldn’t be passing a rate increase on to the majority of homeowners.
“I think we should do a little more homework to find out what would appear to be the right mark,” Gallo said.
Scott Wilkinson, who works for the water and sewer department, said council should take Merchel’s advice.
Wilkinson said adjusting the lowest consumption tier to zero to 25,000 gallons would not affect the elderly in the township or people on a certain budget that are using 10,000 gallons or fewer.
“My opinion is that Tom is the expert and you guys should listen to him,” Wilkinson said. “I think we don’t charge enough. No one wants to raise taxes, but it’s pennies.”
Gallo said he just wanted to be sure 25,000 gallons was the right number to cut off the first consumption tier at. He said he wanted to be sure the right number wasn’t 24,000 or 27,000 instead.
“I don’t want to be here next year saying we didn’t adjust the tiers right,” Gallo said.
In order to make a change in rates or to the consumption tiers, council must pass an ordinance accordingly.
Before making a final decision, Council asked Merchel to do a three-year projection outlining how increases in New Jersey American Water rates could affect the township’s utility budget, and factor that information into this year’s suggested rate increase.
At the meeting council said it would hold a special meeting on June 1 to introduce the budget. However, a statement on the township’s Web site last week announced the special meeting had been cancelled and that council intended to introduce the budget at its next regular action meeting, which is scheduled for June 14.
