Hazlet to dissolve sewerage authority
Creation of sewer utility to be discussed at Sept. 2 meeting
BY JAMIE ROMM Staff Writer

HAZLET — The township took the first steps to dissolve the Hazlet Sewerage Authority and to create a sewer utility, a move that could save taxpayers up to $200,000, according to Hazlet officials.

John Cantalupo, the township's bond counsel, explained the action to the residents in attendance at the Township Committee meeting Aug. 5.

"In the middle of July, the Township Committee approved a resolution for applications to the finance board to dissolve the sewerage authority," Cantalupo said. "That application was filed in July and will be heard on Aug. 13."

The application has since been approved.

Cantalupo explained the three ordinances that were introduced on Aug. 5: the first would dissolve the authority; the second would be to assume all contractual obligations and debts; the third would create a township sewer utility that would take over all operations, so there would be no interruption of service.

The authority operates independently using the services of an auditor, an attorney and an engineer at meetings and for consultation.

The Township Committee has no jurisdiction over the authority; however, if the authority were dissolved and a utility created, township officials would have authority over the utility, which would be supported by sewage fees only.

The merits of keeping or disbanding the sewerage authority have been a longstanding controversy, which runs along party lines. Whether or not the existence of the authority is a waste or saves money is the issue.

Democrats, now in the majority on the governing body, say that the existence of an independent authority to maintain the infrastructure and send out bills is tantamount to flushing taxpayer dollars down the drain.

Republicans in the past have said that there is no proof that disbanding the authority would result in savings, and that the authority has a debt too large for taxpayers to assume.

At the Aug. 5 meeting, the vote to introduce the ordinances passed by a 4-0 vote with both Democratic and Republican committeemen voting for the dissolution.

Four other towns are partially hooked into the Hazlet authority's system. The authority maintains the pipes that carry sewage to the Bayshore Regional Sewerage Authority to be treated.

About 250 homes in Holmdel on the Hazlet border are serviced by the authority. A small number of homes in Union Beach, Keyport and Aberdeen also draw from the Hazlet authority's service.

The transition to a sewer utility would mean that daily operations of the authority would be moved to town hall and a new billing process, collections and maintenance work schedule would be created.

Residents' sewer bill would be included in their tax bills, but the utility bill portion would be separate and not part of the tax amount.

The public hearing for the three ordinances that were introduced will take place Sept. 2 at the Township Committee meeting.

The first ordinance introduced the dissolution of the Sewerage Authority and the creation of a sewer utility, while the second ordinance involved financing the new utility.

"As part of the dissolution of the Hazlet Township Sewerage Authority for the assumption of certain outstanding obligations … issued to finance such authority's sewer system, appropriating not to exceed $2,157,000 … and authorizing the assumption by the township of not to exceed $2,157,000 bonds of the authority for such purpose," the ordinance reads.

The third ordinance provides for a 120- day period in which the township must merge the sewerage authority into township operations until the sewer utility can be created.

At a meeting in July, Hazlet Chief Financial Officer Catherine Campbell explained the process that the township had to follow to dissolve the sewerage authority and create the sewer utility.

"There are several steps that have to be taken; first of all, we have to go to the Local Finance Board [and] we have to get their approval," Campbell said. "Once that is taken care of, we have to do an ordinance that brings the sewerage authority into the township."

She said that ordinances involving the sewerage authority are the same as any other utility the township operates.

"Then there is an ordinance to establish the rates; it is a utility such as the swim club," Campbell said. "It is separate, so all the revenues that are collected have to match the operating revenues, so it has to stand on its own."

She described how the township would fund the utility.

"It has to be self-liquidating, so that is why it is kept separate from the tax bill," Campbell said. "There are some people that feel it should be included in the tax rate, and I have talked to the auditor and he has stated that it is to be kept separate."

With the finance board's approval, which the township received Aug. 13, the township can move forward.

"We have to perform each process as we go along and we are not going to spend 'x" amount of money if, for instance, the Local Finance Board says we can't go ahead with it," Campbell said. "[Then] you have spent all this money and you have nothing to show for it. Once we get all the steps in place, we will move ahead."

The township is moving forward after each step is taken and will now hear from the public at the Sept. 2 meeting.