Bloomfield May Make Big Switch To Residents' Sewer Bills: What To Know

BLOOMFIELD, NJ — Not sure if you support Bloomfield’s controversial sewer proposal yet? You’ll get a little bit more time to make up your mind.

According to Mayor Jenny Mundell, the town council will be delaying the second reading of a proposed ordinance that could change how sewer service charges are assessed for local residents and businesses.

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Instead of being included in property taxes, sewer costs would move to a “user fee” system with a base charge and a usage-based charge tied to water consumption – similar to how water bills are put together in Bloomfield.

Supporters of the plan say it would shift the financial burden from residents to larger commercial users that place greater strain on the sewer system.

Critics argue that Bloomfield residents could lose legal protections and potential tax deductions, and have questioned town officials’ claims that the move will save most residents money.

>> READ MORE: Sewer Controversy Leaves Bloomfield Flush With Debate; Budget Still In Limbo

Township administrators will hold a public information session to discuss the proposal at 6 p.m. on Thursday, May 7. The virtual event can be viewed at the town’s Facebook page, or WBMA-TV (Comcast 35, FiOS 30, Roku, Apple TV, Amazon Fire). Learn more here.

A second reading and public comment for the ordinance was originally scheduled for May 18.

‘SHOULD RESIDENTS PAY THE SAME AS A CAR WASH?’

Township administrators have released a list of “frequently asked questions” for the proposal, which can be seen here or viewed below.

According to the FAQ guide, 98 percent of Bloomfield households will pay less than they are currently paying through property taxes. The typical Bloomfield household currently pays about $211 per year for sewer costs. If the ordinance passes, households will pay about $100 per year – an annual savings of $111.

On the flip side of the coin, many businesses will pay more. Some properties that are operating under long-term tax agreements such as PILOTs – and which do not contribute to sewer costs through property taxes – would be required to pay under the new system.

Currently, “high-volume” users such as laundromats, car washes and large buildings are not paying based on usage – leaving homeowners and renters on the hook for about 78 percent of the town’s total sewer costs. The proposed ordinance would leave residents footing only 37 percent of the bill.

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.

Costs 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.

“Should residential taxpayers be paying the same rate for sewer charges as the local car wash?” Mundell recently questioned in a social media post summarizing the ordinance.

“Sewer costs have increased over 35 percent in the past four years, driven by the Passaic Valley Sewerage Commission (PVSC), which sets these rates,” Mundell continued. “State law also limits how much taxes can increase.”

“This proposal is about managing real costs fairly, and in a way that benefits the average homeowner,” she added.

Other details in the town’s FAQ document include:

• The town would use a phased approach, moving about $3 million of the estimated $5.15 million in sewer costs to the new system first – with the rest remaining in property taxes during the transition
• Rates may be adjusted over time as part of regular financial review and depending on rate increases from the PVSC
• No new meters or additional equipment is needed
• Sewer charges will appear on a resident’s water bill
• The proposal was developed by the town’s chief financial officer, the financial advisor and auditor

In April, town administrator Anthony DeZenzo said the proposed sewer ordinance could end up playing a role in this year’s municipal budget, which is still being hammered out.

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.

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CRITICISM

Some 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.

Doug Grant, who clashed with town officials last year as chair of the Bloomfield Rent Leveling Board, has been outlining his concerns in a series of Substack posts.

“This new fee is not about covering simple cost increases – it is a deliberate cap-evasion strategy,” Grant wrote. “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 has claimed that the new system could lead to rising costs for seniors, veterans and people who rent their homes.

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:

• You Lose The Tax Deduction – “Right now, sewer costs are embedded in your property taxes. If you itemize your federal taxes, that means they’re partially deductible — typically saving the average taxpayer somewhere between 22 and 24%. Once sewer costs become a standalone fee, that deduction disappears entirely.”
• The Fee Is No Longer Capped – “While sewer costs sit inside the municipal budget, they’re subject to the same 2% to 3.5% annual CAP as everything else. The moment they move to a user fee, that protection is gone. The town could theoretically raise sewer fees well beyond 3.5% in any given year with no state-imposed limit.”

“Let’s be direct: moving sewer costs out of the municipal budget benefits the township — not the taxpayers,” Margaryan and Tom wrote.

“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,” they added.

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.

• Related: Proposed Sewer Charge Stirs Up Irate Bloomfield Residents

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