Mayor says facts support dissolution of MTMUA

As the mayor of Marlboro, I am compelled to respond to not only the Dec. 9 Your Turn guest column from the Marlboro Township Municipal Utilities Authority (MTMUA) commissioners, but also to the recent attacks coming from the MTMUA itself as to the administration and Township Council's investigation into the dissolution of the authority.

It is unfortunate that the MTMUA has attempted to divert the attention of the public away from the financial impact of running this extended area of government.

Rather than dealing with the financials directly — numbers that do not lie — the authority would have the public believe my efforts are aimed at diverting work to township professionals and acting contrary to the interests of Marlboro residents. In fact, nothing could be further from the truth.

While it may have been prudent for the Marlboro Township Council to create the MTMUA in 1962, it is equally prudent to examine its dissolution in 2009 in order to further shrink the size of government, reduce municipal spending, and provide our residents with much needed financial relief. The township and its residents have an absolute interest in the financial concerns of the MTMUA as the township is the absolute guarantor of all of its debts and bonds.

The council and the administration have an obligation to carefully review all departments to determine whether waste and unnecessary spending exists. During my administration we have carefully discharged these obligations in a nonpartisan fashion.

Council President Steve Rosenthal and I directed the township staff, with the aid of our township professionals, to review the MTMUA to determine if additional savings could be achieved through consolidation and restructuring. The unanimous conclusion from the initial feasibility study was that the authority was simply an outdated and unneeded extra layer of government that should be restructured and absorbed back into the township.

The conclusions reached by this review rang loud and clear: If restructured and reorganized, the township could save more than $800,000 per year while delivering the same safe and reliable drinking water to residents.

A copy of the report prepared by my staff and our professionals can be found on Marlboro's Internet website at www.marlboronj. gov under Feasibility Study - Marlboro Township Municipal Utilities Authority.

The salient facts uncovered included findings that:

• the MTMUA has a budget of $5 million with 14 full-time employees and one parttime employee.

• that a prior administration awarded the MTMUA's executive counsel (who historically was a $6,000 per year employee) a salary increase to $176,000 a year — with lucrative and burdensome pension benefits — thus paying this employee over $200,000 per year to supervise staff and provide minimal legal work.

• the executive counsel was also provided with a secretary who earns almost twice the average salary of township clerical personnel, to supervise only 14 employees.

• the MTMUA maintained a financial staff comprised of three full-time employees and one part-time employee who collectively make more than $125,000 per year plus pension and medical benefits while simultaneously employing a $60,000 to $75,000 per year outside accountant to oversee their work.

• despite sharply declining revenues due to the lack of new connections, decreased water consumption, and a decrease in investment income, the MTMUA did not cut staff or expenses but rather it increased salaries and benefits.

• since 2007 the MTMUA has used its savings to balance its budget, with that savings, under their own analysis, scheduled to run out in 2011, which would result in dramatic rate increases or municipal contribution to pay for authority debts.

• the MTMUA's 2009 budget showed a $474,000 operational shortfall even after a 5 percent increase in water rates was to be implemented.

• the projected 2010 budget shows an estimated $438,000 operational shortfall even after a proposed 4.5 percent increase in water rates and this budget also warns that additional increases are likely.

• the MTMUA failed to plan to offset a proposed 23 percent rate hike from MiddlesexWater, which is the supply source of the MTMUA's water.

The MTMUA's allegations are, quite simply, unfounded political attacks made in an effort by the director to salvage his lucrative position. It is our duty to safeguard the township's finances and promote governmental efficiency. The dissolution of the MTMUA is yet another example of our efforts to promote good and efficient government.

More importantly, the goal of my administration in studying the dissolution of the authority are stable water rates for the authority customers on a going forward basis, uninterrupted delivery of good, clean water to our residents, elimination of $800,000 in costs from the current budget, and water rate relief and tax relief to our residents.

These difficult choices are not made without substantial consideration for the practical and financial impact upon the residents of Marlboro. However, the simple fact is that by dissolving the authority we will be able to consolidate its administration at substantial savings to our residents. When examining this issue under this simple premise, the decision is crystal clear.

For more information please go to our township website at www.marlboro-nj.gov.

Jonathan L. Hornik is the mayor of Marlboro.