Major Changes To RVSA Fees Coming To Springfield

When Springfield's budget is introduced tonight, something major will be missing: money to the Rahway Valley Sewerage Authority, the regional agency that runs the township's sewers and wastewater.

To reduce the price tag of the township's budget, Springfield's government is considering charging township residents RVSA fees as a separate utility instead of including the sewage fee as part of township's overall tax bill. RVSA fees are one of the three most expensive parts of the budget. The move would let Springfield balance keep its 2009 tax increase well under state mandated caps without having to make government cuts. 

"It removes $1.9 million out of our budget and gives us more cap room," Springfield Committee member Jerry Fernandez said.

With the RVSA, one of the town's largest costs, out of the picture, the town is able to create a budget with a one percent tax increase or even a zero percent increase, depending on whether the committee votes to commit money to pension payments deferred in the previous budget. However, it does not eliminate the need for taxpayers to give money to the RVSA.

"The public is going to pay it one way or another," Fernandez said.

Instead of paying RVSA fees as part of the taxes to the town, home- and business owners will pay RVSA fees as a separate utility bill, similar to the way they are charged for electricity and gas.

Officials say the fee will probably be charged quarterly and will be in accordance with use.

"Once we figure out the mechanism, it will be based on consumption," Springfield Deputy Mayor Bart Fraenkel said.

Other towns, such as Scotch Plains, already charge RVSA fees as a utility. Frankel said that he and other township officials have been looking at how other towns charge for RVSA fees to decide what's best for Springfield.

Springfield officials plan to work with water utility American Water Company to implement a formula based on water use. Fraenkel estimated that homeowners would pay between $120 and $180 under the proposed structure. Businesses and large apartment complexes are likely to shoulder more of the burden under the new assessment method than they do now.

"It is going to be more fair in theory," Fraenkel said.