Bergen County Utilities Authority's Significant Increase Impacts Municipal Budget

The increase that the Bergen County Utilities Authority (BCUA) handed Fort Lee, coupled with the over $500,000 in unexpected emergency funds needed during Hurricane Sandy, has resulted in an anticipated municipal tax increase of $127 per year on an average house assessed at $465,000.

The BCUA's bill of $760,000 represents a 19 percent increase, Mayor Mark Sokolich said at the introduction of the 2013 Municipal Budget during Thursday's Mayor and Council meeting.

"This is the highest increase of any Bergen County town and the borough is fighting it," Sokolich said.

Sokolich said that they are not going to concede to the BCUA. "Our commitment to reducing that bill will be hopefully successful," Sokolich said.

Why did Fort Lee get such an increase? According to Sokolich, Fort Lee is a combined district--the waste pipes (sewer) and storm pipes are connected. Whereas, in other towns there are separate pipes for waste and storm water--both being directed to different areas--they are combined in Fort Lee. Borough officials said to change this would cost millions of dollars. And, in the past it had served Fort Lee.

How? Because the BCUA bases its bill to a town on gallons and the concentration of those gallons. "Because we're a combined system, the gallons are high, but the concentration is low, Sokolich said. "In years past it was a wash because our concentration was low."

Officials said that changed about two years ago when the BCUA decided to impose a county wide average and Bergen County wide averages were high--three to four times higher than Fort Lee's concentration level. This change in configuration has resulted in Fort Lee's averages being high, resulting in an increased bill.   

"We successfully sued two years ago," Sokolich said.

The borough auditor agreed with Sokolich that the 19 percent increase is four to five times higher than any other town's increase.

"It appears we're subsidizing Bergen County," Sokolich said. 

The Mayor explained that the town is going to vigorously fight the BCUA increase. He said that the town has already filed an OPRA request and has engaged a firm that specializes in waste water billing management.

"It's incomprehensible that we can be that high," Sokolich said.   

 Patch will continue to provide updates about the BCUA's increase.

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