BLOOMFIELD, NJ — Is it an idea that will save local homeowners some cash – or should the proposal be flushed down the drain? That’s the debate happening in Bloomfield, which may make a big switch in how it collects sewer fees.
Earlier this week, the Bloomfield Township Council introduced an ordinance that would change how sewer service charges are assessed for residents and businesses. A second vote and public hearing will need to take place before it crosses the finish line.
According to township officials, the goal is to shift the financial burden from small residential users to larger commercial users that place greater strain on the sewer system.
Here’s how administrators explained the proposal:
“Unlike our water system, sewer costs are currently funded through the property tax bill as a flat rate. Every residential and commercial property pays the same rate, regardless of usage. Under this structure, residential taxpayers currently cover approximately 78% of the township’s total sewer costs. The proposed ordinance would begin transitioning Bloomfield to a system that includes both a flat rate and a usage-based charge, similar to how water billing works. This is the first step toward a full usage-based system over time.”
Under the proposed ordinance, residents would only pay about 37 percent of total sewer costs, town administrators said.
The average Bloomfield homeowner currently pays about $211 per year in sewer costs through property taxes. Under the proposed structure, that would decrease to about $100 per year, town officials said: an average annual savings of $111.
The change would be phased in to reduce the impact on local businesses, which “remain an important part of Bloomfield’s community and tax base,” the town’s statement said.
Bloomfield officials pointed to a steep spike in sewer costs during a presentation given at the April 13 town council meeting, which can be viewed online here.
According to figures presented at the meeting, almost all the costs of the system are direct payments to the Passaic Valley Sewer Commission. They have increased by over 35 percent in the past four years, and greater than 10 percent over the past two years – currently coming to more than $5 million.
This isn’t the first time that Bloomfield has seen a debate over its sewer fees. A similar proposal was made in 2011, but didn’t cross the finish line after an outcry from residents.
The latest proposal was discussed at the town council meeting on Monday. Watch video footage here, or view it below (article continues underneath).
TOWN BUDGET
Meanwhile, some residents have been asking about the status of the 2026 municipal budget, which has not been officially introduced yet.
Town Administrator Anthony DeZenzo offered an update on April 13, telling the council that Bloomfield will not meet the introduction timeline this year.
“This delay is due to our continued effort to develop a fiscally responsible budget that remains fully compliant with state cap regulations,” DeZenzo said. “The administration is prioritizing accuracy and long-term financial stability over meeting the statutory deadline.”
In addition to the rising sewer costs, some of the challenges this year include increased health care insurance premiums, pension payments, and previously contracted salary increases for town employees. Unexpected snow removal costs from last winter are also adding to the burden, he said.
An ongoing review of expenses is taking place, with potential staff cuts on the table. A hiring freeze has been implemented to control personnel costs.
“Some of the areas that we're looking at for reductions are public safety/police department and fire department, as well as the department of public works through attrition,” DeZenzo said.
DeZenzo also said that the proposed sewer ordinance could end up playing a big role in this year’s budget.
An increase to Bloomfield’s temporary municipal budget was introduced on April 20. It will cover roughly May to October.
Township administrators offered the following explanation about the decision:
“This is a standard and common practice that allows the township to keep running based on last year’s approved budget while the 2026 budget is finalized. The temporary budget simply allows us to continue paying for essential services, like police, fire, public works, and payroll, using last year’s funding levels until the new budget is adopted. Because this year’s budget is being finalized on an extended timeline, this temporary budget covers a four-month period, consistent with standard municipal budgeting practices. Our goal is still to pass the full budget well before that period ends. This is not new spending, not overspending, and not an added cost to taxpayers. It’s a routine part of the budget process that keeps services running without interruption.”
Property taxes in New Jersey are mainly made up of three parts: school, municipal and county.
In 2025, the average Bloomfield resident paid $12,379 in property taxes on a home valued at $354,872 (not including credits and deductions). Here’s how that broke down, according to state data (percentages rounded up):
>> Related: Tax Hike, Staff Cuts Loom As Bloomfield School District Hammers Out Budget
CRITICISM AND QUESTIONS
Several Bloomfield residents have been offering dissenting views on the town’s sewer and budget conundrums – and alleging that there may be other factors at play that are being overlooked.
Satenik Margaryan, a former town council candidate, advised residents to be “skeptical” about the sewer proposal in a recent Bloomfield Chronicles post with Peter Tom.
They pointed to New Jersey’s 2 percent ceiling on budget increases – which can only be exceeded in limited situations – as well as the “cap bank” that towns are allowed to squirrel away for a rainy day.
“In short, the CAP law creates a tight box that towns have to budget inside of – which is exactly why moving costs like sewer fees off the tax levy and into a separate user fee is such an attractive option,” Margaryan and Tom wrote. “It’s not just about saving residents money. It’s about making more room inside that box.”
Here are two potential trade-offs to keep in mind, they said:
“Let’s be direct: moving sewer costs out of the municipal budget benefits the township — not the taxpayers,” Margaryan and Tom wrote.
“If this were sound long-term planning, there would have been public discussion before the ordinance,” their post continued. “Instead, we got a retroactive start date of April 1, 2026. That’s not planning. That’s scrambling. Bloomfield has a CAP space problem, and this is their fix — one that happens to give them more room to raise both property taxes and sewer fees down the road, unconstrained by the statutory limits that currently protect you.”
Another resident, Doug Grant, has also questioned the proposed sewer fee.
Grant – who clashed with town officials last year as chair of the Bloomfield Rent Leveling Board – has been outlining his own concerns in a series of Substack posts this week, sharing data that he has obtained via Open Public Records Act requests.
“At the April 13 township council meeting, the administration presented a plan to create a new $3 million ‘Sewer User Fee,’ telling the public it was necessary due to rising costs and the statutory 2 percent property tax cap,” Grant wrote.
“However, the raw financial data tells a completely different story,” he said.
“This new fee is not about covering simple cost increases – it is a deliberate cap-evasion strategy,” Grant claimed. “By shifting $3 million off the visible property tax bill and onto a new user fee, the administration is bypassing the state’s 2 percent levy cap.”
Grant also raised questions about budgeting in the water and parking utilities departments, as well as the library tax and terminal leave payouts.
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