New Water and Sewer Rates

Posted: March 11, 2019

The Randolph Township Council approved new water and sewer rates effective February 2019. A letter was mailed to property owners indicating the reasons and the rate changes.

The township water utility operated with the same rate structure since 2012 when rates were last increased. During this time period, the utility fund absorbed the capital expense of funding the replacement of aging infrastructure in the Mount Freedom and Shongum areas, as well as annual increases charged by the Morris County Municipal Utilities Authority for bulk water purchases and other rising industry costs. An analysis of current/future fund revenues-expenses determined that without an increase in rates in 2019, the fund would not be able to keep pace with these increased costs during the coming year and beyond.

In response to a rate study that found the sewer utility fund to be financially performing exceedingly well at the close of 2018, sewer rates have decreased. The fund amassed a significant reserve for the purpose of funding capital expenses forecast for the Butterworth sewer initiative and other capital projects, along with the potential impact of ongoing litigation between Jersey City and the Rockaway Valley Regional Sewer Authority in which Randolph is a member municipality. The study determined that reserve funding is sufficient to cover the forecasted expenses associated with these activities and that rates could be reduced without negatively impacting the long range financial stability of the sewer utility fund.

As a result of the new rates, the average water utility customer will see an increase of $21.34 per quarter, and the average sewer utility customer will see a quarterly decrease of $23.30.

Residents with questions about the rate changes may contact the township manager’s office at 973.989.7060 for more information.