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Tax Software An analyst with a Washington, D.C., consumer advocacy group urged the Newark City Council yesterday to gather more information and explore more options before approving an administration plan to lease the operation of the watershed and water utility operation to a nonprofit corporation.

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Software Tax "Are they going to do a better job than the current utility? What other options were investigated?" asked Maj Fiil, an analyst with Public Citizen's Water for All Campaign. The group has examined various water delivery plans around the country.

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Every Landlord Tax Deduction "Act with information," Fiil implored the council. "There seems to be a lot of information missing."

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Tax Help The council is set to vote at its 1 p.m. meeting today on what Mayor Sharpe James has termed the Water Optimization plan. Under the proposal, the Newark Watershed and Development Corp., which oversees city watershed land in Morris, Sussex and Passaic counties, would reorganize as the Newark Infrastructure Management Corp. or NiMac.

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Help Tax The new corporation would then lease and run the watershed and water and sewer utilities, which have a combined 225 employees and a $79 million budget. The lease would last 40 years.

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Ernst Ernst Guide Guide Tax The new agency would float $129 million in bonds for operating expenses and bond repayment and provide the city with $90 million in revenue that would be used for property tax relief for the city's first revaluation in 42 years.

Tax Return Using projected bond interest rates of up to 5.1 percent, the city would pay over $260 million in principal and interest on the bonds. The new agency would also take on $70 million in current water and sewer utility debt and has promised the city $75 million above the $90 million payment if certain conditions are met.

Return Tax Water rates would increase 3 percent and sewer rates would increase 9.7 percent in the first year, according to the proposal. From 2004 to 2007, water and sewer charges would increase at least 3 percent annually.

Guide Guide Master Master Tax James, also a state senator, sponsored enabling legislation that was signed by Gov. James E. McGreevey in August.

Tax Preparation Zinnerford Smith, head of the Newark Watershed and Development Corp., and a leading candidate to head the new agency, says the plan will help the system operate more effectively by removing politics from financial decisions affecting the system.

Preparation Tax But after examining Newark's plan, Fiil, and a fellow analyst at Public Citizen, said the proposal is a quick financial fix that will leave the agency in debt, raise water rates and limit public and council input. The council invited Fiil to speak and paid for her train ticket from Washington.

Employer Tax Guide Fiil questioned the common sense of having Smith and Glenn Scotland, an attorney hired by the Newark Watershed and Development Corp., explain the plan to the council since they have an interest in seeing it implemented.

Tax Services Fiil said the city council will lose the ability to control water rates since the new agency will have the power to set rates to meet its operating needs and bond repayment obligations. In addition, the 40-year lease is twice as long as other plans she has seen and the new agency will have the ability to sell more bulk water than Newark already does, raising potential environmental concerns, Fiil said.

Services Tax Public hearings have not been held on the plan since the new amendments, including the offer of an additional $75 million, were proposed. There are just too many questions left unanswered by the proposal, Fiil said.

Master Tax Guide "In every city I've examined, the rates have gone up significantly more than what was planned," Fiil said.

Tax Attorney Scotland disagreed with many of Fiil's points, saying that the council will have control over rates because they will decide whether to approve the bonds that will affect water rates. NiMac also will be subject to review by the Department of Environmental Protection, the Board of Public Utilities and the Division of Local Government Services.

Attorney Tax The council conference meeting lasted three hours and included robust discussion between council members about the plan. Councilwoman-at-large Bessie Walker said the council should explore more options before approving the mayor's plan.

Guide Law Tax West Ward resident Terri Suess said that since the plan is being promoted in the name of property tax relief, the council members should wait until they set a new tax rate to determine how much money might be appropriate to help residents.

Tax Accountant West Ward Councilwoman Mamie Bridgeforth, who voted in favor of the plan last week, said she was grappling with what might happen if there is not enough money for property tax relief. "If you fall behind on your water bill you can juggle a bit. There is no juggling when the mortgage has to be paid," she said.

Accountant Tax By Jeffery C. Mays
Star-Ledger - 3/5/2003

Topic: Highlands

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