Bill Text: NJ A1961 | 2022-2023 | Regular Session | Introduced
Bill Title: Permits certain local units and authorities to reduce water, sewer, and stormwater fees and other charges for low-income persons; appropriates $200,000.
Spectrum: Partisan Bill (Democrat 4-0)
Status: (Introduced - Dead) 2022-03-14 - Reported out of Asm. Comm. with Amendments, and Referred to Assembly Appropriations Committee [A1961 Detail]
Download: New_Jersey-2022-A1961-Introduced.html
STATE OF NEW JERSEY
220th LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2022 SESSION
Sponsored by:
Assemblyman RAJ MUKHERJI
District 33 (Hudson)
Assemblyman ROBERT J. KARABINCHAK
District 18 (Middlesex)
Assemblyman WILLIAM F. MOEN, JR.
District 5 (Camden and Gloucester)
Co-Sponsored by:
Assemblywoman Chaparro
SYNOPSIS
Permits certain local units and authorities to reduce water, sewer, and stormwater fees and other charges for low-income persons.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel.
An Act concerning certain water and sewerage service rates and stormwater utility fees and amending and supplementing various parts of the statutory law.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. (New section) a. In addition to being authorized to establish rates or schedules as provided for in section 1 of P.L.1994, c.78 (C.40:14A-8.2), any county or municipal sewerage authority, which bills individual retail customer accounts, may, to the extent permitted by federal law, annually establish within its district rates or schedules which provide for a reduction of the periodic rents, rates, fees, or other charges for the use or services of the sewerage system which are charged to or collected from a person residing in the district, provided that:
(1) the person is the owner or tenant of a dwelling unit in the district and the person resides in the dwelling unit;
(2) the dwelling unit is a single-family dwelling or a dwelling unit in a two-family dwelling; and
(3) the household income for the person who resides in the dwelling unit is at or below a percentage of the most recent federal poverty guidelines, which percentage shall be established by the county or municipal sewerage authority.
b. A county or municipal sewerage authority that establishes a reduction pursuant to subsection a. of this section shall adopt procedures for establishing eligibility and obtaining a reduction, and shall advertise the availability of the reduction in the bills submitted to residents in the district for periodic rents, rates, fees, or other charges for the use or services of the sewerage system, or in special periodic mailings to residents in the district.
c. The provisions of this section shall apply only if a county or municipal sewerage authority determines that, with regard to its annual budget, there is available an undesignated fund balance or there exists a sufficient amount of unreserved retained earnings set aside and designated to offset the projected loss in revenues that may be attributable to providing a reduction permitted pursuant to subsection a. of this section.
d. As used in this section:
"Dwelling unit" means a structure, or portion thereof, which serves primarily as a residence for one or more persons.
"Household income" means the total income from all sources during the last full calendar year of an owner or tenant of a dwelling unit in the district and any immediate family member residing with the owner or tenant.
2. (New section) a. In addition to being authorized to establish rates or schedules as provided for in section 1 of P.L.1992, c.215 (C.40:14B-22.2), any municipal authority, which bills individual retail customer accounts, may, to the extent permitted by federal law, annually establish within its district rates or schedules which provide for a reduction of the periodic rents, rates, fees, or other charges for the use or services of the sewerage system, the water system, or both the sewerage system and the water system, which are charged to or collected from a person residing in the district, provided that:
(1) the person is the owner or tenant of a dwelling unit in the district and the person resides in the dwelling unit;
(2) the dwelling unit is a single-family dwelling or a dwelling unit in a two-family dwelling; and
(3) the household income for the person who resides in the dwelling unit is at or below a percentage of the most recent federal poverty guidelines, which percentage shall be established by the municipal authority.
b. A municipal authority that establishes a reduction pursuant to subsection a. of this section shall adopt procedures for establishing eligibility and obtaining a reduction, and shall advertise the availability of the reduction in the bills submitted to residents in the district for periodic rents, rates, fees, or other charges for the use or services of the sewerage system, the water system, or both the sewerage system and the water system, or in special periodic mailings to residents in the district.
c. The provisions of subsections a. and b. of this section shall apply only if a municipal authority determines that, with regard to its annual budget, there is available an undesignated fund balance or there exists a sufficient amount of unreserved retained earnings set aside and designated to offset the projected loss in revenues that may be attributable to providing a reduction permitted pursuant to subsection a. of this section.
d. As used in this section:
"Dwelling unit" means a structure, or portion thereof, which serves primarily as a residence for one or more persons.
"Household income" means the total income from all sources during the last full calendar year of an owner or tenant of a dwelling unit in the district and any immediate family member residing with the owner or tenant.
3. (New section) a. In addition to being authorized to establish rates or schedules as provided for in section 5 of P.L.1994, c.78 (C.40A:26A-10.1), any local unit operating a county or municipal sewerage facility, which bills individual retail customer accounts, may, to the extent permitted by federal law, annually establish within its district rates or schedules which provide for a reduction of the periodic rents, rates, fees, or other charges for the use or services of the sewerage system which are charged to or collected from a person residing in the district, provided that:
(1) the person is the owner or tenant of a dwelling unit in the district and the person resides in the dwelling unit;
(2) the dwelling unit is a single-family dwelling or a dwelling unit in a two-family dwelling; and
(3) the household income for the person who resides in the dwelling unit is at or below a percentage of the most recent federal poverty guidelines, which percentage shall be established by the local unit operating a county or municipal sewerage facility.
b. A local unit operating a county or municipal sewerage facility that establishes a reduction pursuant to subsection a. of this section shall adopt procedures for establishing eligibility and obtaining a reduction, and shall advertise the availability of the reduction in the bills submitted to residents in the district for periodic rents, rates, fees, or other charges for the use or services of the sewerage system, or in special periodic mailings to residents in the district.
c. The provisions of subsections a. and b. of this section shall apply only if a local unit operating a county or municipal sewerage facility determines that, with regard to its annual budget, there is available an undesignated fund balance or there exists a sufficient amount of unreserved retained earnings set aside and designated to offset the projected loss in revenues that may be attributable to providing a reduction permitted pursuant to subsection a. of this section.
d. As used in this section:
"Dwelling unit" means a structure, or portion thereof, which serves primarily as a residence for one or more persons.
"Household income" means the total income from all sources during the last full calendar year of an owner or tenant of a dwelling unit in the district and any immediate family member residing with the owner or tenant.
4. (New section) a. In addition to being authorized to establish rates or schedules as provided for in section 7 of P.L.1994, c.78 (C.40A:31-10.1), a local unit operating a county or municipal water supply facility, which bills individual retail customer accounts, may, to the extent permitted by federal law, annually establish within its district rates or schedules which provide for a reduction of the periodic rents, rates, or other charges for water supply service which are charged to or collected from a person residing in the district, provided that:
(1) the person is the owner or tenant of a dwelling unit in the district and the person resides in the dwelling unit;
(2) the dwelling unit is a single-family dwelling or a dwelling unit in a two-family dwelling; and
(3) the household income for the person who resides in the dwelling unit is at or below a percentage of the most recent federal poverty guidelines, which percentage shall be established by the local unit operating a county or municipal water supply facility.
b. A local unit operating a county or municipal water supply facility that establishes a reduction pursuant to subsection a. of this section shall adopt procedures for establishing eligibility and obtaining a reduction, and shall advertise the availability of the reduction in the bills submitted to residents in the district for periodic rents, rates, or other charges for water supply service, or in special periodic mailings to residents in the district.
c. The provisions of subsections a. and b. of this section shall apply only if a local unit operating a county or municipal water supply facility determines that, with regard to its annual budget, there is available an undesignated fund balance or there exists a sufficient amount of unreserved retained earnings set aside and designated to offset the projected loss in revenues that may be attributable to providing a reduction permitted pursuant to subsection a. of this section.
d. As used in this section:
"Dwelling unit" means a structure, or portion thereof, which serves primarily as a residence for one or more persons.
"Household income" means the total income from all sources during the last full calendar year of an owner or tenant of a dwelling unit in the district and any immediate family member residing with the owner or tenant.
5. (New section) a. In addition to being authorized to establish fees and other charges as provided in section 8 of P.L.2019, c.42 (C.40A:26B-8), any county, municipality, or authority that establishes a stormwater utility may, to the extent permitted by federal law, provide for a reduction in the fees and other charges it collects from a person residing in the stormwater utility's service area, provided that:
(1) the person is the owner or tenant of a dwelling unit in the stormwater utility's service area and the person resides in the dwelling unit;
(2) the dwelling unit is a single-family dwelling or a dwelling unit in a two-family dwelling; and
(3) the household income for the person who resides in the dwelling unit is at or below a percentage of the most recent federal poverty guidelines, which percentage shall be established by the county, municipality, or authority.
b. A county, municipality, or authority that establishes a reduction in fees and other charges pursuant to subsection a. of this section shall adopt procedures for establishing eligibility and obtaining a reduction, and shall advertise the availability of the reduction in the bills submitted to residents in the stormwater utility's service area for fees and other charges for stormwater management, or in special periodic mailings to residents in the stormwater utility's service area.
c. The provisions of subsections a. and b. of this section shall apply only if a county, municipality, or authority that establishes a stormwater utility determines that, with regard to its annual budget, there is available an undesignated fund balance or there exists a sufficient amount of unreserved retained earnings set aside and designated to offset the projected loss in revenues that may be attributable to providing a reduction permitted pursuant to subsection a. of this section.
d. As used in this section:
"Dwelling unit" means a structure, or portion thereof, which serves primarily as a residence for one or more persons.
"Household income" means the total income from all sources during the last full calendar year of an owner or tenant of a dwelling unit in the district and any immediate family member residing with the owner or tenant.
6. Section 1 of P.L.2017, c.290 (C.40:14A-4.2) is amended to read as follows:
1. a. Notwithstanding the provisions of any other law to the contrary, the budget of a regional sewerage authority that was created pursuant to the provisions of P.L.1946, c.138 (C.40:14A-1 et seq.), and that is located in a county of the first class with a population of over 600,000 and a population density of over 10,000 persons per square mile according to the latest federal decennial census shall be subject to the following provisions:
(1) (a) The percentage of growth in the fee-funded appropriations in the annual budget of a regional sewerage authority shall not exceed two percent per year; and the amount billed to customers of the authority, or the amount billed to a local unit for its proportional share of the authority's expenses, as the case may be, shall not exceed that amount billed in the previous budget year to each customer or local unit, as the case may be, by more than two percent for a similar amount of use or service of the sewerage system.
(b) A regional sewerage authority may add to the allowable growth in fee-funded appropriations in any one of the next three succeeding years, the amount of the difference between the maximum allowable increase in fee-funded appropriations for the current budget year pursuant to subparagraph (a) of this paragraph and the actual amount of fee-funded appropriations for the current budget year.
(2) The percentage of growth in the fee-funded appropriations in the annual budget of a regional sewerage authority shall be determined without consideration of any amounts appropriated by the authority for:
(a) capital expenditures, including payment of principal or interest on bonds authorized or issued pursuant to the "sewerage authorities law," P.L.1946, c.138 (C.40:14A-1 et seq.);
(b) increases in pension contributions and accrued liability for pension contributions in excess of two percent over those expenditures for the previous budget year;
(c) increases in health care costs equal to that portion of the actual increase in total health costs for the budget year that is in excess of two percent of total health care costs in the previous budget year, but is not in excess of the product of the total health care costs in the prior year and the average percentage increase of the State Health Benefits Program, P.L.1961, c.49 (C.52:14-17.25 et seq.), as annually determined by the Division of Pensions and Benefits in the Department of the Treasury;
(d) increases in energy cost expenditures in excess of two percent over those expenditures for the previous budget year;
(e) extraordinary costs that are directly related to an emergency;
(f) expenditures for the cost of services mandated by any order of court, by any federal or State statute, or by administrative rule, directive, order, permit, or other legally binding device issued by a State agency which identified the cost as a mandated expenditure on certification to the Local Finance Board by the State agency; and
(g) costs associated with the establishment of a stormwater utility pursuant to P.L.2019, c.42 (C.40A:26B-1 et al.) or for any of the purposes authorized in subsection e. of section 8 of P.L.2019, c.42 (C.40A:26B-8).
(3) Notwithstanding the limitations imposed by paragraph (1) of this subsection, a regional sewerage authority may apply to the Local Finance Board for a waiver to increase its rents, rates, fees, and charges to levels sufficient to:
(a) compensate for loss of revenues due to reductions in the use or service of the sewerage system; or
(b) allow for reasonable increases in rents, rates, fees, or other charges that are necessary to compensate for reductions provided pursuant to section 1 of P.L. , c. (C. ) (pending before the Legislature as this bill).
(4) Notwithstanding the limitations imposed by paragraph (1) of this subsection, the percentage of growth in the increase of the rents, rates, fees, and charges of a regional sewerage authority shall be determined without consideration of any amounts required to be raised for the purposes set forth in subparagraph (g) of paragraph (2) of this subsection.
As used in this section, "emergency" shall mean any purpose which is not foreseen at the time of the adoption of the annual budget, or for which adequate provision was not made therein, to meet a pressing need for public expenditure to protect or promote the public health, safety, morals, or welfare.
b. After the budget of a regional sewerage authority that is subject to the provisions of subsection a. of this section has been approved by the members of the regional sewerage authority, the budget shall be forwarded to the Director of the Division of Local Government Services for review and approval.
The director shall review the budget to ensure that the budget conforms with the requirements of subsection a. of this section and the "Local Authorities Fiscal Control Law," P.L.1983, c.313 (C.40A:5A-1 et seq.), and that the budgeted expenditures are reasonable in cost and necessary for the performance of the regional sewerage authority.
If the director determines that the budget meets the requirements of this subsection, the director shall approve the budget. If the director does not approve the budget, the director shall return the budget to the members of the regional sewerage authority with written information concerning the reasons for the disapproval of the budget.
To the extent that the provisions of subsection a. of this section conflict with the provisions of the "Local Authorities Fiscal Control Law," P.L.1983, c.313 (C.40A:5A-1 et seq.), subsection a. of this section shall take precedence.
(cf: P.L.2019, c.42, s.19)
7. Section 8 of P.L.1946, c.138 (C.40:14A-8) is amended to read as follows:
8. (a) Every sewerage authority is hereby authorized to charge and collect rents, rates, fees or other charges (in this act sometimes referred to as "service charges") for direct or indirect connection with, or the use or services of, the sewerage system. Such service charges may be charged to and collected from any person contracting for such connection or use or services or from the owner or occupant, or both of them, of any real property which directly or indirectly is or has been connected with the system or from or on which originates or has originated sewage or other wastes which directly or indirectly have entered or may enter the sewerage system, and the owner of any such real property shall be liable for and shall pay such service charges to the sewerage authority at the time when and the place where such service charges are due and payable.
(b) Rents, rates, fees and charges, which may be payable periodically, being in the nature of use or service charges, shall as nearly as the sewerage authority shall deem practicable and equitable be uniform throughout the district for the same type, class and amount of use or service of the sewerage system, except as permitted by section 1 of P.L.1994, c.78 (C.40:14A-8.2) or section 1 of P.L. c. (C. ) (pending before the Legislature as this bill), and may be based or computed either on the consumption of water on or in connection with the real property, making due allowance for commercial use of water, or on the number and kind of water outlets on or in connection with the real property, or on the number and kind of plumbing or sewerage fixtures or facilities on or in connection with the real property, or on the number of persons residing or working on or otherwise connected or identified with the real property, or on the capacity of the improvements on or connected with the real property, or on any other factors determining the type, class and amount of use or service of the sewerage system, or on any combination of any such factors, and may give weight to the characteristics of the sewage and other wastes and any other special matter affecting the cost of treatment and disposal thereof, including chlorine demand, biochemical oxygen demand, concentration of solids and chemical composition. In addition to any such periodic service charges, a separate charge in the nature of a connection fee or tapping fee, in respect of each connection of any property with the sewerage system, may be imposed upon the owner or occupant of the property so connected. Such connection charges shall be uniform within each class of users, except as provided by section 2 of P.L.2005, c.29 (C.40:14A-8.30) and except as provided by section 2 of P.L.2005, c.173 (C.40:14A-8.4), and the amount thereof shall not exceed the actual cost of the physical connection, if made by the authority, plus an amount computed in the following manner to represent a fair payment toward the cost of the system:
(1) The amount representing all debt service, including but not limited to sinking funds, reserve funds, the principal and interest on bonds, and the amount of any loans and interest thereon, paid by the sewerage authority to defray the capital cost of developing the system as of the end of the immediately preceding fiscal year of the authority shall be added to all capital expenditures made by the authority not funded by a bond ordinance or debt for the development of the system as of the end of the immediately preceding fiscal year of the authority.
(2) Any gifts, contributions or subsidies to the authority received from, and not reimbursed or reimbursable to any federal, State, county or municipal government or agency or any private person, and that portion of amounts paid to the authority by a public entity under a service agreement or service contract which is not repaid to the public entity by the authority, shall then be subtracted.
(3) The remainder shall be divided by the total number of service units served by the authority at the end of the immediately preceding fiscal year of the authority, and the results shall then be apportioned to each new connector according to the number of service units attributed to that connector, to produce the connector's contribution to the cost of the system. In attributing service units to each connector, the estimated average daily flow of sewage for the connector shall be divided by the average daily flow of sewage for the average single family residence in the authority's district to produce the number of service units to be attributed.
The connection fee shall be recomputed at the end of each fiscal year of the authority, after a public hearing is held in the manner prescribed in subsection (c) of this section. The revised connection fee may be imposed upon those who subsequently connect in that fiscal year to the system. The combination of such connection fee or tapping fee and the aforesaid periodic service charges shall meet the requirements of subsection (c) hereof.
(c) The sewerage authority shall prescribe and from time to time when necessary revise a schedule of service charges, which shall comply with the terms of any contract of the sewerage authority and in any event shall be such that the revenues of the sewerage authority will at all times be adequate to pay all expenses of operation and maintenance of the sewerage system, including reserves, insurance, extensions, and replacements, and to pay punctually the principal of and interest on any bonds and to maintain such reserves or sinking funds therefor as may be required by the terms of any contract of the sewerage authority or as may be deemed necessary or desirable by the sewerage authority. Said schedule shall thus be prescribed and from time to time revised by the sewerage authority after public hearing thereon which shall be held by the sewerage authority at least 20 days after notice of the proposed adjustment is mailed to the clerk of each municipality serviced by the authority and publication of notice of the proposed adjustment of the service charges and of the time and place of the public hearing in at least two newspapers of general circulation in the area serviced by the authority. The sewerage authority shall provide evidence at the hearing showing that the proposed adjustment of the service charges is necessary and reasonable, and shall provide the opportunity for cross-examination of persons offering such evidence, and a transcript of the hearing shall be made and a copy thereof shall be available upon request to any interested party at a reasonable fee. The sewerage authority shall likewise fix and determine the time or times when and the place or places where such service charges shall be due and payable and may require that such service charges shall be paid in advance for periods of not more than one year. A copy of such schedule of service charges in effect shall at all times be kept on file at the principal office of the sewerage authority and shall at all reasonable times be open to public inspection.
(d) Any county sewerage authority may establish sewerage regions in portions of the district. Rents, rates, fees and charges which may be payable periodically, being in the nature of use or service charges, shall as nearly as the sewerage authority shall deem practicable and equitable, be uniform throughout the district for the same type, class and amount of use or service of the sewerage systems, except as permitted by section 1 of P.L.1994, c.78 (C.40:14A-8.2), and shall meet all other requirements of subsection (b) hereof.
(cf: P.L.2005, c.173, s.1)
8. Section 21 of P.L.1957, c.183 (C.40:14B-21) is amended to read as follows:
21. a. Every municipal authority is hereby authorized to charge and collect rents, rates, fees or other charges (in this act sometimes referred to as "water service charges") for direct or indirect connection with, or the use, products or services of, the water system, or for sale of water or water supply services, water supply facilities or products. Such water service charges may be charged to and collected from any person contracting for such connection or use, products or services or for such sale or from the owner or occupant, or both of them, of any real property which directly or indirectly is or has been connected with the water system or to which directly or indirectly has been supplied or furnished such use, products or services of the water system or water or water supply services, water supply facilities or products, and the owner of any such real property shall be liable for and shall pay such water service charges to the municipal authority at the time when and place where such water service charges are due and payable. Such rents, rates, fees and charges shall as nearly as the municipal authority shall deem practicable and equitable be uniform throughout the district for the same type, class and amount of use, products or services of the water system, except as permitted by section 1 of P.L.1992, c.215 (C.40:14B-22.2) or section 2 of P.L. c. (C. ) (pending before the Legislature as this bill), and may be based or computed either on the consumption of water on or in connection with the real property, or on the number and kind of water outlets on or in connection with the real property, or on the number and kind of plumbing fixtures or facilities on or in connection with the real property, or on the number of persons residing or working on or otherwise connected or identified with the real property, or on the capacity of the improvements on or connected with the real property, or on any other factors determining the type, class and amount of use, products or services of the water system supplied or furnished, or on any combination of such factors, and may give weight to the characteristics of the water or water services, facilities or products and, as to service outside the district, any other matter affecting the cost of supplying or furnishing the same, including the cost of installation of necessary physical properties.
Every municipal authority that furnishes water supply services or operates water supply facilities shall establish a rate structure that provides for uniform water service charges for water supply service and fire protection systems.
No municipal authority may impose standby fees or charges for any fire protection system to a residential customer served by a water service line of two inches or less in diameter.
Nothing in this section shall preclude a municipal authority from requiring separate dedicated service lines for fire protection. A municipal authority may require that fire service lines be metered. Nothing in this section shall alter the liability for maintenance and repair of service lines which exists on the effective date of P.L.2003, c.278.
b. In addition to any such water service charges, a separate charge in the nature of a connection fee or tapping fee, in respect of each connection of any property with the water system, may be imposed upon the owner or occupant of the property so connected. Such connection charges shall be uniform within each class of users, except as provided by section 5 of P.L.2005, c.29 (C.40:14B-22.3) and except as provided by section 5 of P.L.2005, c.173 (C.40:14B-22.4), and the amount thereof shall not exceed the actual cost of the physical connection, if made by the authority, plus an amount computed in the following manner to represent a fair payment toward the cost of the system:
(1) The amount representing all debt service, including but not limited to sinking funds, reserve funds, the principal and interest on bonds, and the amount of any loans and interest thereon, paid by a municipal authority to defray the capital cost of developing the system as of the end of the immediately preceding fiscal year of the authority shall be added to all capital expenditures made by the authority not funded by a bond ordinance or debt for the development of the system as of the end of the immediately preceding fiscal year of the authority.
(2) Any gifts, contributions or subsidies to the authority received from, and not reimbursed or reimbursable to any federal, State, county or municipal government or agency or any private person, and that portion of amounts paid to the authority by a public entity under a service agreement or service contract which is not repaid to the public entity by the authority, shall then be subtracted.
(3) The remainder shall be divided by the total number of service units served by the authority at the end of the immediately preceding fiscal year of the authority, and the results shall then be apportioned to each new connector according to the number of service units attributed to that connector, to produce the connector's contribution to the cost of the system. In attributing service units to each connector, the estimated average daily flow of water for the connector shall be divided by the average daily flow of water to the average single family residence in the authority's district, to produce the number of service units to be attributed.
c. The connection fee shall be recomputed at the end of each fiscal year of the authority, after a public hearing is held in the manner prescribed in section 23 of P.L.1957, c.183 (C.40:14B-23). The revised connection fee may be imposed upon those who subsequently connect in that fiscal year to the system. The combination of such connection fee or tapping fee and the aforesaid water service charges all meet the requirements of section 23 of P.L.1957, c.183 (C.40:14B-23).
d. The foregoing notwithstanding, no municipal authority shall impose any charges or fees in excess of the cost of water actually used for any sprinkler system required to be installed in any residential health care facility pursuant to the "Health Care Facilities Planning Act," P.L.1971, c.136 (C.26:2H-1 et seq.) and regulations promulgated thereunder or in any rooming or boarding house pursuant to the "Rooming and Boarding House Act of 1979," P.L.1979, c.496 (C.55:13B-1 et al.) and regulations promulgated thereunder. Nothing herein shall preclude any municipal authority from charging for the actual cost of water main connections, except as provided by section 5 of P.L.2005, c.29 (C.40:14B-22.3) and except as provided by section 5 of P.L.2005, c.173 (C.40:14B-22.4).
(cf: P.L.2005, c.173, s.3)
9. N.J.S.40A:26A-10 is amended to read as follows:
40A:26A-10. After the commencement of operation of sewerage facilities, the local unit or units may prescribe and, from time to time, alter rates or rentals to be charged to users of sewerage services. Rates or rentals being in the nature of use or service charges or annual rental charges, shall be uniform and equitable for the same types and classes of use and service of the facilities, except as permitted by section 5 of P.L.1994, c.78 (C.40A:26A-10.1) or section 3 of P.L. c. (C. ) (pending before the Legislature as this bill). Rates or rentals and types and classes of use and service may be based on any factors which the governing body or bodies of that local unit or units shall deem proper and equitable within the region served.
In fixing rates, rental and other charges for supplying sewerage services, the local unit or units shall establish a rate structure that allows, within the limits of any lawful covenants made with bondholders, the local unit to:
a. Recover all costs of acquisition, construction or operation, including the costs of raw materials, administration, real or personal property, maintenance, taxes, debt service charges, fees and an amount equal to any operating budget deficit occurring in the immediately preceding fiscal year;
b. Establish a surplus in an amount sufficient to provide for the reasonable anticipation of any contingency that may affect the operating of the sewerage facility, and, at the discretion of the local unit or units, allow for the transfer of moneys from the budget for the sewerage facilities to the local budget in accordance with section 5 of P.L.1983, c.111 (C.40A:4-35.1).
(cf: P.L.1994, c.78, s.6)
10. N.J.S.40A:31-10 is amended to read as follows:
40A:31-10. a. After the commencement of operation of water supply facilities, the local unit or units may prescribe and, from time to time, alter rates or rentals to be charged to users of water supply services. Rates or rentals being in the nature of use or service charges or annual rental charges, shall be uniform and equitable for the same type and class of use or service of the facilities, except as permitted by section 7 of P.L.1994, c.78 (C.40A:31-10.1) or section 4 of P.L. c. (C. ) (pending before the Legislature as this bill). Rates or rentals and types and classes of use and service may be based on any factors which the governing body or bodies of that local unit or units shall deem proper and equitable within the region served.
b. Every local unit operating a municipal water supply facility shall establish a rate structure that provides for uniform rates, rentals, or other charges for water supply service and fire protection systems.
No local unit may impose standby fees or charges for any fire protection system to a residential customer served by a water service line of two inches or less in diameter.
c. In fixing rates, rental and other charges for supplying water services, the local unit or units shall establish a rate structure that allows, within the limits of any lawful covenants made with bondholders, the local unit to:
(1) Recover all costs of acquisition, construction or operation, including the costs of raw materials, administration, real or personal property, maintenance, taxes, debt service charges, fees and an amount equal to any operating budget deficit occurring in the immediately preceding fiscal year;
(2) Establish a surplus in an amount sufficient to provide for the reasonable anticipation of any contingency that may affect the operation of the utility, and, at the discretion of the local unit or units, allow for the transfer of moneys from the budget for the water supply facilities to the local budget in accordance with section 5 of P.L.1983, c.111 (C.40A:4-35.1).
d. No local unit or units shall impose any rates or rentals in excess of the cost of water actually used for any sprinkler system required to be installed in any residential health care facility pursuant to the "Health Care Facilities Planning Act," P.L.1971, c.136 (C.26:2H-1 et seq.) and regulations promulgated thereunder or in any rooming or boarding house pursuant to the "Rooming and Boarding House Act of 1979," P.L.1979, c.496 (C.55:13B-1 et al.) and regulations promulgated thereunder.
e. Nothing in this section shall preclude a local unit operating a municipal water supply facility from requiring separate dedicated service lines for fire protection. The local unit may require that fire service lines be metered. Nothing in this section shall alter the liability for maintenance and repair of service lines which exists on the effective date of P.L.2003, c.278.
(cf: P.L.2003, c.278, s.7)
11. Section 8 of P.L.2019, c.42 (C.40A:26B-8) is amended to read as follows:
8. a. Any county, municipality, or authority that establishes a stormwater utility pursuant to P.L.2019, c.42 (C.40A:26B-1 et al.) may charge and collect reasonable fees and other charges to recover the stormwater utility's costs for stormwater management. These fees and other charges may be charged to and collected from the owner or occupant, or both, of any real property from which originates stormwater runoff which directly or indirectly enters the stormwater management system or the waters of the State. The owner of any such real property shall be liable for and shall pay such fees and charges to the stormwater utility at the time when and place where the fees and charges are due and payable.
b. [Any] Except as provided in section 5 of P.L. c. (C. ) (pending before the Legislature as this bill), any fee or other charge that a county, municipality, or authority charges and collects pursuant to this section shall be based on a fair and equitable approximation of the proportionate contribution of stormwater runoff from a real property.
c. In establishing fees and other charges pursuant to this section, a county, municipality, or authority shall provide for:
(1) a partial fee reduction in the form of a credit for any property that maintains and operates a stormwater management system that complies with the State and local stormwater management standards that were in place at the time the system was approved and that effectively reduces, retains, or treats stormwater onsite;
(2) an additional partial fee reduction in the form of a credit for any property which has installed and is operating and maintaining current stormwater best management practices that reduce, retain, or treat stormwater onsite and which are approved by the county, municipality, or authority;
(3) an additional partial fee reduction in the form of a credit for any property which has installed and is operating and maintaining green infrastructure that reduces, retains, or treats stormwater onsite and which exceeds any requirements for green infrastructure that may be applicable to that property under any rule or regulation adopted by the Department of Environmental Protection or the local stormwater control ordinance; and
(4) an exemption from fees and other charges for land actively devoted to agricultural or horticultural use that is valued, assessed, and taxed pursuant to the "Farmland Assessment Act of 1964," P.L.1964, c.48 (C.54:4-23.1 et seq.).
d. Any county, municipality, or authority that collects fees and charges pursuant to this section shall remit to the State Treasurer annually an amount equal to five percent of all such fees and charges collected, or $50,000, whichever amount is less. The State Treasurer shall deposit these moneys into the "Clean Stormwater and Flood Reduction Fund" established pursuant to section 17 of P.L.2019, c.42 (C.40A:26B-17).
e. Except as provided in section 5 of P.L.1983, c.111 (C.40A:4-35.1) or section 1 of P.L.2004, c.87 (C.40A:5A-12.1), as applicable, a county, municipality, or authority shall only use fees and other charges collected pursuant to this section to pay for or recover all or a portion of the cost of the following:
(1) initial establishment of a stormwater utility pursuant to P.L.2019, c.42 (C.40A:26B-1 et al.) and ongoing related administrative expenses;
(2) capital expenditures, including planning, design, engineering, acquisition, construction, and improvement of a stormwater management system;
(3) operation and maintenance expenditures of a stormwater management system;
(4) development and implementation of an asset management program for a stormwater management system;
(5) development and implementation of a stormwater management plan and stormwater control ordinances pursuant to section 1 of P.L.1981, c.32 (C.40:55D-93);
(6) any action required pursuant to any New Jersey Pollutant Discharge Elimination System permit;
(7) development and implementation of any long-term control plan to mitigate combined sewer overflows pursuant to State or federal law, rule, regulation, permit, or consent decree;
(8) monitoring, inspection, and enforcement activities to carry out the purposes of P.L.2019, c.42 (C.40A:26B-1 et al.);
(9) public education and outreach related to stormwater management; and
(10) any other purpose related to stormwater management as may be authorized by the department, the Division of Local Government Services in the Department of Community Affairs, or the Local Finance Board pursuant to rules, regulations, or permits.
f. In establishing fees and other charges and appropriate credits pursuant to this section, a county, municipality, or authority shall consult the guidance manual developed pursuant to section 16 of P.L.2019, c.42 (C.40A:26B-16), and other best practice guidance manuals published by industry organizations.
(cf: P.L.2019, c.42, s.8)
12. This act shall take effect immediately, but any rate reduction shall remain inoperative until the first day of the fourth month next following the date of enactment.
STATEMENT
This bill permits certain local units and authorities to reduce water, sewerage, and stormwater fees, and other charges for low-income persons.
Specifically, under the bill, a local unit or authority that operates a water, sewerage, or stormwater management system (local unit or authority) is permitted to reduce the fees or other charges it collects from a person residing in its district or service area, provided that:
(1) the person is the owner or tenant of a dwelling unit in the district or service area and the person resides in the dwelling unit;
(2) the dwelling unit is a single-family dwelling or a dwelling unit in a two-family dwelling; and
(3) the household income for the person who resides in the dwelling unit is at or below a percentage of the most recent federal poverty guidelines, which percentage is to be established by the local unit or authority.
A local unit or authority that establishes a reduction under the bill is required to adopt procedures for eligibility for a reduction and for obtaining a reduction, and advertise the availability of the reduction in the bills submitted to residents in the district or service area, or in special periodical mailings to residents in the district or service area.
The bill requires that its provisions are only to apply if there is available an undesignated fund balance or there exists a sufficient amount of unreserved retained earnings set aside and designated to offset the projected loss in revenues that may be attributable to providing a reduction.
Further, the bill authorizes a regional sewerage authority to increase charges in excess of the two percent statutory cap, subject to Local Finance Board approval, in order to allow for reasonable increases in fees and other charges that are necessary to compensate for reductions provided for low-income persons under the bill
