Politics & Government

Freeholders Say No to Proposed 20% Water Rate Hike

Half of Holmdel Township is served by New Jersey American Water.

With New Jersey American Water seeking a raise in its rates, the Monmouth County Freeholders have joined a growing list of groups opposing the proposal. 

At their meeting on Feb. 23 the board approved a resolution of opposition. "Elected county and municipal officials have demonstrated a sensitivity to taxpayers by cutting spending against the tide of rising expenses while faced with a two percent cap," said Freeholder Director John Curley. "New Jersey American Water Co. should share that responsibility and help reduce the unprecedented financial burdens on our residents."

According to a press release from the Freeholders, New Jersey American Water serves 2.5 million people in 17 counties. The purpose of the rate increase, according to the release is to help pay for $300 million in infrastructure investments. American Water, the parent company of the local version reported a net income of $33.9 million in the third quarter of 2011 alone, a seven percent increase from last year.

Find out what's happening in Holmdel-Hazletwith free, real-time updates from Patch.

The resolution from the Freeholders comes two months after a was held in Howell where local residents and officials expressed their opposition to the rate hikes.

Senator Robert Singer was the first at that meeting to speak and the first to object to the increase. Speaking on behalf of the other representatives for the 30th District, Singer said, "We stand firmly in opposition to New Jersey American Water's request which will increase rates," he said. "We wholeheartedly implore New Jersey Board of Public Utilities to carefully and meticulously before the final decisions are made based on the perception that other utilities are not raising rates as frequently or as severely as New Jersey American Water"

Find out what's happening in Holmdel-Hazletwith free, real-time updates from Patch.

Freeholder Deputy Director Thomas A. Arnone said the utility company was not doing its part to help their users during difficult economic times. "Local governments in New Jersey are doing their part to contain costs and find new and innovative ways, such as sharing services to ease the burden on residents," said Freeholder Deputy Director Thomas A. Arnone. "New Jersey American Water Co. needs to tighten its belt like everyone else."

If approved it would be the third rate increase by the company since 2008. The proposed increase would raise the average user's monthly bill by $7.10.

Freeholder Lillian G. Burry said the increases are difficult especially for something as vital as water. "Water is a precious commodity and something we all need," she said. "But for many people the vast array of government services are also a necessity. If government can cut costs and continue to provide excellent services, it seems the water company should be able to do the same."

The newest member of the Freeholder board, Serena DiMaso echoed her colleagues statements. "Many people in Monmouth County and elsewhere in New Jersey are struggling to survive," she said. "Now is not the time to ask your customers to pay more for water."

The proposed increase still needs approval from the Board of Public Utilities. The hearing in Howell one of many that were held across the state.  


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