Howell sewer rep disputes town’s figure on increase

AHowell representative on the Manasquan River Regional Sewerage Authority (MRRSA) disagrees with Howell’s CFO about how much the township’s sewer rates could rise in 2010.

Suzanne Veitengruber, who is one of Howell’s two representatives on the MRRSA, took issue with Chief Financial Officer Jeffrey Filiatreault’s suggestion that officials should hike Howell’s sewer rates an average of $67 annually to make up for the MRRSA’s recent 6 percent bulk rate increase.

The MRRSA’s rate hike would translate into an extra $8.30 per year per user, based on 5,900 users, Veitengruber said in an email to the Tri-Town News.

The MRRSA is an independent authority that serves five towns — Howell, Freehold Township, Freehold Borough, Farmingdale and Wall Township.

Filiatreault suggested at the Jan. 19 council meeting that the township increase the quarterly rates for Howell municipal sewer customers because of the MRRSA’s 6 percent hike in the bulk rate. He proposed a $67 increase in residential rates, a 9.7 percent jump from last year, and a $70 increase in commercial rates, a 9.62 percent hike.

The MRRSA billed Howell $4,223,340 in 2009, an amount that does not include the February 2010 reconciliation. Howell’s total estimated 2010 bill is $4,272,290, an increase of $48,950, Veitengruber said.

“While the bulk rate went up 6 percent, the net effect on Howell is a 1.15 percent increase in the township’s bill,” she wrote. “This is the result of the projected flows from Howell being lower in 2010.”

The MRRSA has not had a rate increase for 13 years. The authority was able to fend off increases during that time due to revenue from increased flow, new connection fees and return on investments, Veitengruber said.

But the MRRSA experienced a “severe” reduction in connection fees and flow due to the real estate market downturn, reductions in new housing starts and reduced revenues due to the investment rate plunge, she said.

The 2010 wastewater flow projections were based on a review of the last five years of annual flows from the five member towns.

Filiatreault said the MRRSA flow projections were “brand-new news” to him.

“She is either privy to information not given to us or information that has been withheld from us,” he said on Jan. 29. “If I can get a hold of the flow information, I can recalculate and we can look at the rate again. It’s all new to me. She is using flow estimates that have not been supplied to us.”

Veitengruber said the MRRSA sent letters to Township Manager Helene Schlegel and to Filiatreault on Dec. 22, 2009, advising them of the new rate and the amount that Howell would be billed in 2010.

Jesse Tantillo, the other MRRSA Howell representative, was slated to make a presentation on the matter at the Feb. 2 Township Council meeting. Veitengruber said she would be unable to attend that meeting because of a prior commitment.

Township Councilman William Gotto criticized the MRRSA at the Jan. 19 council meeting for not informing the governing body earlier of the increase.

“I don’t like having this kind of thing pop up at the last minute,” he said on Jan. 31. “When the size of the rate increase was proposed, obviously I was a little taken aback. I do understand there was some information not yet available.”

Gotto said he expected the numbers to be clarified at the Feb. 2 council meeting.

Howell has a sewage collection system with 13 pumping stations. The waste first goes to the MRRSA, travels through MRRSA lines and eventually hooks into the Ocean County Utilities Authority system for treatment, Filiatreault said.