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Residents press council for accounting of $9M annual sewer fees as CFO outlines path to usage-based system
Summary
Residents and council members pressed for transparent accounting of roughly $9 million in annual sewer fees and asked why sewer infrastructure still needs bonding. Finance said a rate study, American Water data and transition work would be required to consider creating a sewer utility or usage-based fee.
Several residents and council members asked for a detailed accounting of the township’s sewer fee revenue and spending after the finance presentation noted the township collects roughly $9 million annually from the sewer fee.
"If West Orange has been collecting approximately $9,000,000 annually in sewer fees… why are we now facing the prospect of borrowing substantial additional money? Where have those fees gone?" asked a resident speaker during public comment. Finance director Mister Detiniak said the sewer fee remains a fee in the current fund and that creating a separate sewer utility would legally restrict use of those revenues to sewer operations. He outlined steps the township would need to take—including purchasing American Water usage data and performing a rate study—before implementing a usage-based sewer fee, and said such a change likely would take until 2027.
Council members said they want more transparency and data: one councilmember asked for an accounting of how much has been spent on sewer infrastructure this year and last year and requested a breakdown showing how much of the fee revenue has been used for sewer-related capital, how much has been reserved, and how much has been transferred into the general fund. Administration agreed to produce a rate-study plan, provide the pre/post accounting breakdown and to report back in follow-up sessions so council and residents can see whether bonding or a transition to a utility is still needed.
