The central issue during the meeting was the proposed adjustment of water rates amid a projected budget shortfall. The council debated the introduction of a $125 per quarter rate increase, expected to generate approximately $860,000 for the next fiscal year. This increase, set to take effect on April 1st, 2025, raised concerns about potential revenue shortfalls, as it would not apply to the first quarter. Council members discussed various rate structures, including tiered systems and flat fees. The urgency of finalizing the new rates before upcoming budget deadlines was emphasized, with one member warning against delays that could postpone implementation until mid-2025.

Public comments revealed widespread dissatisfaction with the proposed rate increases and the council’s handling of financial issues. Residents like Bill Murray criticized the tiered billing system, advocating for a flat rate based on actual usage. Henny Merton questioned the efficiency of a proposed $80,000 repair for a water main break. Rosa Taris highlighted a $344,000 deficit in the water and sewer budget and called for better communication regarding increases and water quality issues.

The meeting also addressed the ongoing water meter replacement project, an initiative involving a nine-month construction contract expected to improve accuracy in water usage registration. Concerns were raised about the project’s timeline and the feasibility of completing it within the predicted timeframe, especially given potential complications in older homes. The council discussed funding the project with grants initially allocated for lead line replacements and emphasized the importance of clear communication with residents about scheduling and project logistics.

A significant portion of the meeting focused on the borough’s financial management of its utility systems, particularly the water and sewer services. The council acknowledged the need for comprehensive infrastructure improvements, moving away from temporary repairs that have historically served as “Band-Aids.” Discussions included potential partnerships with private utilities like Middlesex Water and New Jersey American Water to alleviate financial burdens. However, these partnerships would involve transferring responsibility for debts and infrastructure improvements.

Health insurance costs associated with the state health benefits plan were identified as a major budgetary concern. Despite efforts to explore alternative insurance options, no providers bid on the borough’s needs, leaving limited options for managing healthcare expenses.

Council members also debated the concept of a tiered water rate system, with some arguing that it unfairly penalizes higher usage. Suggestions were made to reconsider the minimum usage tier to better accommodate seniors and low-usage households. The council recognized the challenge of balancing the need for revenue to support necessary projects against the risk of alienating residents with increased fees.

The potential sale of the water utility system was another topic of discussion. While selling the American Water portion seemed feasible, complications arose regarding sewage management due to existing agreements. The council highlighted the need for significant reinvestment in the sewer system, especially with upcoming developments requiring increased capacity.

Residents called for clearer notifications about rate changes and water quality issues. Concerns about the borough’s ability to manage its utilities effectively were voiced, with some suggesting a shift to private management to focus on contract negotiations rather than direct utility oversight.