Utility Financial Services (UFS) recently completed a cost of service utility rate study for the water and sewer system. This is the fourth study that UFS completed for the Township over the past fifteen year. Working closely with this consultant has allowed the Township to maintain sufficient cash reserves within the Water and Sewer funds without having dramatic swings in utility rates.
In brief, fees for both the Water and Sewer systems are divided between a commodity charge that will vary depending upon the amount of water used (or sewage discharged) and a service charge that remains stable regardless of usage. (Trunkage and connection fees are also charged for new users that are “buying” into these systems.)
The study recommended that the revenues generated by these rates be increased↑ by 1% annually for each of the next five years for the water system and increased↑ by 2% annually for each of the next five years for the sewer system, beginning on January 1st.
It is important to note that these proposed increases are less↓ than the expected inflation rate and indicates that both the Water system and Sewer system remain in a strong financial position.