Wyckoff Wary of Water Rate Hike Proposal

As Ridgewood Water moves toward a proposed 21 percent rate increase, Wyckoff Township seeks an independent analysis, possibly with Glen Rock and Midland Park.

However, the Ridgewood Village Council is set to vote on the utility's request at a special meeting at 7 p.m. Dec. 14. Should the village pass the ordinance to amend its municipal code, water customers would face a hike effective Jan. 1.

Ridgewood Water provides service for Ridgewood, Wyckoff, Midland Park and Glen Rock. Utility director Frank Moritz has said the proposed legislation, which would also allow the village to raise rates annually by no more than 3 percent, is necessary to remain solvent after six years of stable rates.

Ridgewood Mayor David Pfund said "certainly nobody wants any type of increase if we can at all prevent it," but cited the six-year gap in hikes as a reason for the request to raise rates by 21 percent. Pfund said establishing annual hikes not to exceed 3 percent would be "so we don't have to have larger jumps" in the future.

Given the size of the proposed increase, Wyckoff would like to take its own look at the request, especially as it enters a difficult budget year in which state aid is in question. Township Mayor Joseph Fiorenzo said at this past week's Township Committee meeting that the township is exploring the possibility of asking the accounting firm of Lerch, Vinci & Higgins to take a closer look at the hike.

Fiorenzo, who is in his last month in office, had hoped Midland Park and Glen Rock would join such an effort "so we could work cooperatively for the mutual benefit of all of our residents" on a proposal that deserves "serious examination.

"It would basically be an accounting analysis of expenses and the justification for the rate increase," the mayor said after the meeting. "I think we owe it to our residents to do due diligence."

It's not yet clear whether the municipalities would join such an effort. Fiorenzo said he wrote letters to the mayors of Midland Park and Glen Rock, and Administrator Robert Shannon also has tried to initiate contact. The mayor said Midland Park had expressed interest, while there was no word from Glen Rock.

Glen Rock municipal Administrator Lenora Benjamin told Patch that the Borough Council will meet Monday night for a work session, where they will discuss the Ridgewood Water proposal and whether to join Wyckoff in seeking further justification for the increase. Midland Park Administrator Michelle Dugan did not return a call for comment.

Should Ridgewood adopt the water rate ordinance Monday, Wyckoff would have little recourse. Fiorenzo said the township could theoretically appeal to the state Board of Public Utilities and/or try its luck within the state appellate court system.

However, Ridgewood Water's proposal does not need BPU approval, according to Doyal Siddell, public information officer. The BPU does not have jurisdiction because Ridgewood is proposing uniform rates.

"As long as Ridgewood charges the same rates within and outside of the municipality, it does not have to apply to the BPU for a rate change," Siddell said. Essentially, the BPU would need to get involved only if Wyckoff (or Midland Park, Glen Rock) customers were subsidizing service to Ridgewood residents via higher rates.

Instead, the Local Finance Board, a program of the Division of Local Government Services in the state Department of Community Affairs, has jurisdiction over the utility's request, Siddell said. Representatives of the Local Finance Board did not return multiple calls and e-mails for comment, and a review of their agendas from the past four months shows no action related to the village or Ridgewood Water.

The utility is proposing a rate change from $3.32 per 1,000 gallons of water to $4 per 1,000 gallons, which could mean an approximately $80 annual hike for the average customer. Meter fees would be revised, ranging from $21.87 for the smallest meters to $200 for the largest. The ordinance would permit a fee of cost plus 20 percent for after-hours service calls as well as resumption of service requests if water had been cut off for nonpayment of bills. Those whose bills are in arrears would face an 8 percent interest rate annually on the first $1,500 owed and 18 percent annually on a balance greater than $1,500. The legislation also sets a $35 bounced check fee.

Commercial customers would face higher rates than residential users. The pending ordinance sets a rate of $10 per 1,000 gallons of water for landscapers and tree service companies.

Additionally, Ridgewood Water would charge $1,438 for new connections.

Moritz, who was not available for additional comment, has said the request is due in part to increased costs facing the utility. Maintenance and health care expenses are rising, as are chlorine rates.

Pfund pointed to the fair market rates Ridgewood Water customers would pay following a raise. "We're right in the middle with regards to all the other water companies that surround us in regards to our pricing," he said.

Ho-Ho-Kus pays $3.75 per 1,000 gallons, Ramsey $3.80, Waldwick $4.25 and Fair Lawn $4.50. 

Ridgewood Water had expressed interest in meeting with Wyckoff officials earlier this fall, and township representatives declined to take the meeting. Fiorenzo said that local officials still have not met with village representatives.

"Before we meet we need basic information," the mayor said.

The Ridgewood Village Council will hold a public hearing on the proposal before a vote Monday night.