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Stanhope raises PFAS and water-rate questions as budget moves forward; HUD water tower grant advances
Summary
At the Feb. 24 Stanhope council meeting, CFO Angelica Sabatini and Administrator McNeilly discussed water and sewer budget line items, proposed use of PFAS settlement funds, and the status of a HUD water tower grant; officials warned filtration costs could be substantial and scheduled further rate discussions.
CFO Angelica Sabatini reviewed multiple line items in the proposed 2026 water and sewer budgets during the Feb. 24 Mayor and Council meeting, answering questions about heating fuel, printing and advertising, engineering, generator maintenance and departmental supplies.
Sabatini highlighted that PFAS settlement funds are held in reserve and could be used as revenue in this budget. She said there is an expectation of further payments from litigants and noted the borough has already received a significant initial payment. Administrator McNeilly cautioned that mitigation costs are uncertain and could be large: "It is possible that the system will cost at least one million dollars," he said, adding that whether one or all four wells require filtration will shape costs.
Why it matters: the council faces a choice between using PFAS reserve funds now or preserving them for future mitigation. Using $80,000 from the PFAS reserve to balance the 2026 budget would reduce the reserve and likely necessitate replenishment; council members signaled they will address rate adjustments and reserve contributions during 2026 for the 2027 budget.
Sabatini described other revenue and reserve items: water connection fees in reserves are limited after prior draws; sewer connection fees are substantial due to prior outside connections and cannot be transferred to the water fund. The CFO said anticipated increases in health-care and operational costs contributed to a four-year rate adjustment plan and may require re-evaluation later this year.
Separately, Administrator McNeilly and Borough Engineer Eric Keller reported progress on a HUD water tower grant application. The grant worksheet submission is complete and the application moved to departmental review; geotechnical work and initial design are expected to start within a month with the goal of going to bid by fall.
Next steps: the council asked staff to provide backup documentation on specific budget line items (e.g., departmental supplies and generator costs) and agreed to revisit water-rate adjustments and reserve strategy during 2026 ahead of the 2027 budget.
