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Council debates paying $10K–$15K to recalculate sewer connection fee; asks for break‑even analysis

Borough of Old Tappan Mayor & Council · June 19, 2024
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Summary

Councilors reviewed a proposal from the borough’s accountants to update the sewer‑connection fee calculation at an estimated cost of $10,000–$15,000, saying the current formula is outdated; members asked for an estimate of expected additional revenue and a break‑even analysis before approving the study.

Councilors discussed a proposal on June 17 to commission the borough’s auditors to recalculate the sewer‑connection fee formula. The borough’s finance and public‑works reports reflected concern that current charges may under‑recover capital costs because the calculation is outdated.

Councilman Kornasz read an accounting firm’s estimate that updating the connection‑fee calculation would cost between $10,000 and $15,000. Members debated whether the town should seek a preliminary estimate of expected additional revenue and run a break‑even analysis before committing funds. One councilor volunteered to prepare a break‑even analysis showing the projected increased revenue versus the study cost to help the council decide whether to proceed.

Councilors noted the work would affect only future connections (not retroactive assessments) and that the borough already has funds in open‑space accounts for other uses, so acquisition funding is separate. No vote was taken; the council directed staff and the volunteer member to obtain an initial revenue estimate and present a recommendation at a future meeting.