Money Matters Dominate PMUA Meeting

Today's tax lien sale will likely bring the Plainfield Municipal Utility Authority's collection rate up to 98 or 99 percent, Chief Financial Officer Duane Young said at Tuesday's meeting of the authority, which provides solid waste and sewer services to the city.

The tax lien sale is for delinquencies in 2012. The published list names more than 1,200 property owners owing sewer bills and about 200 owing property taxes. City Tax Collector David Marshall arranged the sale and the authority reimburses the city for its portion of expenses incurred. Each entity gets paid by investors who buy the liens at up to 18 percent interest. The property owner then owes the lien holder, who can move to foreclose if not paid back in two years.

Young could not provide a collection rate Tuesday without the sale, but for about 15,000 households in the city, the PMUA delinquency rate appears to be about 8 percent. He said some ratepayers have paid up in advance of the sale.

Also on sewer bills, PMUA attorney Leslie London said she met recently with members of Association of Environmental Authorities to ask support for proposed legislation that would give property owners tax write-offs on sewer fees. She said the group expressed support and she will send letters to sponsors of the legislation as well as to relevant committees. PMUA Executive Director Dan Williamson said some people thought the proposal was "an illusion" or a political move, but he said it is real.

"It may take a while, but it's moving," he said.

PMUA announced the proposal in July 2012 (see Plaintalker post here).

In another money matter, PMUA commissioners approved a rate change for accepting leaves, grass, logs and brush (known as Type 23 vegetative waste) at the Rock Avenue transfer station. For municipalities only, the new rate will be $45 per ton.

The change is yet another adjustment as the authority seeks to attract and retain outside business. In 2012, the authority changed a $94.20 per ton rate, or the equivalent of $28.54 per cubic yard, to $6.50 per cubic yard as a draw for new customers. At the time, the authority had a contract with a Lawrenceville firm to accept unlimited cubic yards of Type 23 waste at a flat monthly rate. But Hurricane Sandy's massive tree damage upset the formula and the disposal site balked at receiving the unprecedented tonnage.

Since then, PMUA began charging $60 per ton, but Williamson said Tuesday some municipal clients found that cost too high and dropped out, so the authority sought the lower rate of $45 per ton to attract them back. Click here for some background on the effort to attract new business at the transfer station.

The next scheduled PMUA meeting is on Nov. 12, the  same date as a City Council meeting that combines an agenda-fixing session with a regular meeting. The council is combining the two meetings to allow for members to participate in the League of Municipalities conference the following week. Check pmua.info near the date for any updates on the authority's schedule.

--Bernice