Sewerage authority raises fee paid to Monmouth Beach Future payments to increase in relation to Consumer Price Index

Sewerage authority raises fee paid to Monmouth Beach
Future payments
to increase in relation
to Consumer Price Index

MONMOUTH BEACH — Thirty-six years after a handshake agreement to pay the borough $3,500 a year for its hospitality, the local regional sewerage authority has agreed, for the first time, to up that amount.

The recently renamed Two River Water Reclamation Authority’s members voted 9-1 at its meeting Oct. 23 to increase its municipal services contribution to $20,000 a year. The services the money pays for include roads, fire and police protection, and garbage collection.

The new payment, which will be formalized in a written agreement, was tied to the Consumer Price Index and will rise over time with adjustments.

"It should be noted that the borough police receive a number of complaints and help to resolve the issues quickly," Michael A. Gianforte, executive director of the authority, said in his report to members on a Legal Affairs Committee meeting where the payment increase was worked out.

Borough residents often complain about odors from the sewer plant and currently are putting up with noise from a $48 million expansion and upgrades.

Members of the authority, formerly the Northeast Monmouth County Regional Sewerage Authority, voted for the increase in the payment despite the strong protest of Daniel Levine.

Levine, a representative of Little Silver, one of the six member towns (the authority also has six customer towns and serves two military bases), said each town is a partner and to just give the extra money to Monmouth Beach "doesn’t seem fair" for the other towns in the authority. He said having the sewer plant in Monmouth Beach has been good for the town.

"If Monmouth Beach is having a problem, it should come forth and state it,’’ he said. "I’m in favor of waiting for this plant (expansion) to be complete and see what would be fair and equitable."

The decision to increase the municipal services contribution came about after Monmouth Beach Commissioner William C. Barham wrote the authority on Sept. 14 to ask that the amount of the payment be reviewed. Barham said other "host" communities were receiving greater remuneration and cited, as examples, Union Beach, which receives income from the Bayshore Regional Sewerage Authority, and Oceanport, which receives income from the New Jersey Sports and Exposition Authority for Monmouth Park race track.

In a follow-up letter dated Oct. 1, he said, "I believe now would be a good time to review this situation as the authority must be looking into rate adjustments to the treatment plant users due to increased costs as a result of the construction program. The additional cost as a result of the borough’s request could be incorporated into the new rate and would have a minimal effect."

Findings of the Legal Affairs Committee, as reported to the rest of the authority, included:

• Bayshore Regional Sewerage Authority pays Union Beach 6 cents per gallon of sewage that originates in the town. This equates to $19,000 per year on average for Union Beach. If applied to Monmouth Beach, this formula would equate to $12,000 per year.

• If the $3,500 per year payment to the borough had been tied to the Consumer Price Index originally, it would now be $16,000 per year. The difference between what was paid and what would have been paid over the same years with the index increases is about $196,000.

• Monmouth Beach would be collecting $286,000 a year in taxes on the land the sewer plant occupies if the property were privately owned. The local purpose portion of the tax, which would go to the municipality, is $73,000.

The authority has made contributions to Monmouth Beach in the past for specific projects including $11,100 to repave a portion of Riverdale Avenue in 1999, $2,900 in 2000 to purchase additional infield dirt, and reconstruction of the ball field in 1994 and 1995. The authority has maintained a ball field on sewer plant property which has been used by the borough.

Carmine Perrapato, a representative of Monmouth Beach, a member town, and chairman of the Legal Affairs Committee, said that the municipal services payment was separate from the ball field.

"It’s for what the town is giving us — the sewer authority," Perrapato said. "We sat down to make it right."

Sam P. Siciliano, a representative of Shrewsbury, also a member town, said he would support the $20,000 although he thought it a little high. By comparison, he said, Shrewsbury has four churches, the Eastern Branch of the Monmouth County Library and several charitable institutions which are tax-free.

But Elwood Baxter, chairman of the authority, said the $20,000 was justified.

"I feel it’s an inflation adjustment and it’s equitable,’’ he said, noting that Oceanport, where he lives, receives $1.3 million from the sports authority in lieu of a tax payment for Monmouth Park. "I just don’t think we should be paying $3,500. I’m willing to settle on $20,000, but I think it should be more."

When the roll call was finally taken, Levine cast the only no vote.