FY2027 Proposed Budget
A proposed budget for fiscal year 2027 detailing rate changes for water and sewer services, effective December 1, 2026.
Executive Director at The Township of Lower Municipal Utilities Authority
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Superintendent of Wastewater Treatment & Collections
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A proposed budget for fiscal year 2027 detailing rate changes for water and sewer services, effective December 1, 2026.
The agenda for this meeting centers heavily around reorganization matters, including the appointment of key officers such as Chairman, Vice Chairman, Treasurer, and Secretary through multiple resolutions. It also addresses the reappointment of professional service contracts, including Solicitor, Bond Counsel, Engineer, Auditor, and various consultants. The consent agenda covers banking designations, authority appointments for employees, authorization for purchasing through state contracts, designation of meeting times and official newspapers, and approval of routine bills and fund transfers for capital improvements. The regular agenda includes action items regarding final commercial applications, review of bid results for pump stations, approval of multiple change orders for the Townbank Road Interceptor Lining & Manhole Rehabilitation Project and Diamond Beach PS Force Main Appurtenance Vaults Rehabilitation Project, awarding a contract for Rotary Press rebuild, and ratifying an emergency repair contract. Administrative reports from the Solicitor, Engineer, and Executive Director are also scheduled.
The meeting addressed several key agenda items, including the approval of financial resolutions authorizing operating expense payments and transfers from the Sturdy Capital Improvement Fund for sewer and water capital items. The board reviewed and approved a Customer Change Resolution. Key regular agenda items included reviewing a preliminary commercial application for a duplex on Oak Street and approving a final commercial/residential sewer application for eight new units at 9900 Pacific Avenue, subject to fee purchases. Resolutions were passed to ratify an emergency water main repair contract with Perna Finnigan, Inc., and to award engineering contracts for the replacement of the emergency generator at the Airport Pump Station and the inspection/rehabilitation of Well No. 2. The Cape May County MUA 2026 rate schedule was reviewed. An executive session was authorized to discuss contract negotiations. Administrative reports covered updates on various construction projects, including the Town Bank Road Interceptor Lining Project and the Diamond Beach Force Main Project. Public comments focused on potential changes to retiree health benefits and issues related to property damage from a prior water leak.
The proposed budget includes revenues from additional users due to project completion, and a proposed 5% sewer and 3% water user rate increase, resulting in an overall increase in user charges of 6.5%. Tower lease revenue increased 71.4% due to renegotiating and executing new lease agreements. Interest earned shows an increase of 25% due to better yields and additional funds to be invested. Salaries & Wages for Administration decreased 15.2% due to having one less management position, the reclassifying of certain salaries, netted with a normal rate increase. Fringe benefits, Admin. increased 21.6% to account for health benefits increases projected to be over 30%. Principal Payments on Debt Service and Interest Payment on Debt increased 141.4% and 47% respectively as a result of the addition of the Series 2025 NJIB bond issue for the Sewer Expansion Project. Renewal & Rep 1. Reserve decreased 13.9% due to some new projects funded by debt or Renewal & Replacement funds on hand. Unrestricted Net Positon Used increased 19%, primarily due to the large increase in debt service. The Township of Lower has requested funds to balance their Municipal Budget, which the Authority is funding through Unrestricted Net Position. The Authority is proposing a 3% increase in the Water Rates, and a 5% increase in the Sewer Rates.
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