Hike in sewage fees expected to hit taxpayers

FRANKLIN — A hike in fees charged by the Sussex County Municipal Utilities Authority (SCMUA) is likely to affect local taxes. The battered economy has affected revenue at the waste authority, and those projected losses will be translated into a higher rate at SCMUA. The losses are projected from drop-offs in revenue from both solid waste and sewage, local and county officials say. “It’s not cut in stone yet, but the projected rate is going to be a $214,000 increase next year, which is going to destroy whatever savings we’ve been able to build up,” said Franklin Borough Administrator Richard R. Wolak last week. “Along with the medical costs, next year it’s going to be a disaster when we try to calculate our new budget.” For sewage disposal alone, nearly all of Franklin is serviced by a contract with SCMUA, as are neighboring Hamburg and Sussex Borough, since nearly all of those three towns contain sewers, SCMUA administrator John Hatzelis said. Franklin, however, is SCMUA’s largest single sewage customer. Fees and costs will be varying by town or by “customer,” Hatzelis said, so it isn’t possible yet to tell how much everyone will pay in 2010. But the impact is expected to be significant. “What you’re talking about is several factors converging at one time into a financial impact that is going to hurt the taxpayers,” Hatzelis agreed. “This is a revenue issue, not an expense issue.” Among those “several factors include shrinking revenue from sewage connection fees; and hauled sewage, septic and sludge pickups from other treatment plants, Hatzelis said. In addition, many feel that the dropoff in building and development has led to decreased revenues, since development is the “economic engine” usually in play, Hatzelis said.. Projected revenue from sewer connection fees has shrunk from $1 million in 2005 to about $300,000 in 2009. Finally, a drop-off in state aid adds to the picture.

It’s shaping up as the perfect storm for 2010. But Franklin is not alone. I see a lot of towns that are going to get beat up here.” Richard R. Wolak Franklin Borough Administrator