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North Caldwell officials flag $512,000 water utility shortfall; 10% rate increase proposed
Summary
Officials reported a $512,000 shortfall in the borough’s Water Utility and discussed options including shifting costs, a loan from the Current Fund, or raising the water consumption rate by roughly 10% starting April 1, 2026.
Officials at a March 10 special budget meeting in North Caldwell discussed a $512,000 shortfall in the borough’s Water Utility and preliminary options to close the gap.
Chief Financial Officer Rich Mondelli told the Mayor and Council the shortfall stems from a drop in revenue, the borough’s $200,000 emergency appropriation in the prior year and an inability to anticipate higher revenue. He said the council could consider “a shift in costs between the Current Fund and Water Utility, a loan from the Current Fund, and an increase in the water consumption rate.” Members discussed scenarios and proposed a roughly 10% increase in the water consumption rate to take effect April 1, 2026.
Council members discussed alternatives to a rate increase, including internal transfers or short-term borrowing, but did not adopt a formal resolution or ordinance at the meeting. The report given to the council did not specify the exact dollar impact on a typical household bill; staff were directed to continue refining options and to return with implementation details and revenue estimates.
The matter remains under discussion and no formal vote on a rate change was recorded at the March 10 meeting. Council procedural motions that occurred during the session (to open and close public comment and to adjourn) were carried as noted in the meeting minutes.
