WATER RATES PROPOSED TO INCREASE ON JANUARY 1, 2001 (Nov. 07, 2000)

The Southeast Morris County Municipal Utilities Authority (SMCMUA) notified officials in Morristown, Morris Township, Morris Plains and Hanover Township of a public hearing on a proposed 3.5% increase in water rates effective January 1, 2001. SMCMUA also provides retail water service in parts of Mendham and Harding Townships. The public hearing is scheduled for December 7, 2000, at 7:30 pm at SMCMUA’S offices, 19 Saddle Road in Cedar Knolls.

According to Executive Director Harry G. Gerken, SMCMUA’S aggressive capital improvement program is driving the need to hike rates. "Each year SMCMUA invests heavily in infrastructure improvements and rehabilitation. Our 2001 Capital Budget forecasts expenditures of almost $2.5 million. An additional $11.25 million will be needed through 2006. We try to do as much capital work as we can without incurring the costs of long term bonds. Right now our capital reserves are stretched too thin when we look at the needs over the next few years." Gerken said.

SMCMUA plans to replace over 2.5 miles of water mains in the Whippany section of Hanover Township and in Morris Plains next year at an estimated cost of $1.0 million alone. "Since 1988 we’ve replaced over 8.3 miles of mains and extended over 6 miles of dead end mains at a cost in excess of $8.0 million. With over 350 miles of water mains in the system some of which are approaching 80 years old, we cannot afford to skip a year or two of work." Gerken noted.

The 18,500 customers last experienced a 3.5% increase in rates in 1997. According to SMCMUA Chairman Alfred J Magyar, the typical quarterly residential water bill would increase about $2.50 every three months or about $10 a year. "Our typical single family residential customers have paid about $71.23 a quarter since 1997. The increase would mean a typical quarter bill would be about $73.72. In 1992, 10 years ago, that same single- family residential customer paid $68.82 a quarter. We believe that we have managed the system well while keeping rate increases to a minimum." Magyar said.

Gerken expects the rate increase to add about $300,000 to SMCMUA’S operations on an annual basis. "Our 2001 Operating Budget increases overall costs by less than one percent ($86,286) compared to 2000. The lion’s share of the rate increase will be earmarked for future capital improvements and to continue the aggressive water main replacement program".

The public is invited to participate at the December 7, 2000, meeting or to call the Executive Director’s office for additional information at (973) 326-6865. More comprehensive information about SMCMUA is available at www. smcmua.org.