PARSIPPANY — “Earlier this month, the Republican-majority Township Council and I reluctantly, but unanimously, approved a plan increasing water and sewer rates by 39%. The Township auditor and budget consultant proposed – after an exhaustive fiscal analysis – that anything less than this action would leave the Township in a disastrous financial position.
I want to address the reasons for this increase, the history that led us to this point, and to separate the lies from the truth. Before I begin, let me say this: I am here to report to you the facts surrounding our Township’s finances.
Now, If you don’t trust me because of my political party, or from negative things you’ve heard about me or my administration, I really do hope that you’ll give me a chance. I never dreamt of having a political career. I left a secure, steady, and solid career to run for Mayor because I saw problems in our town that needed to be fixed. Those seeking favors from the Township often threaten me with votes. It never works.
It is my honor and privilege to serve you, and I believe true public service means looking out for the long-term interests of our community.
Now let’s start with some background. For several years, the Township has inched closer to a major shortfall in our water and sewer utilities. Until this year, water and sewer rates had not increased since 2006. Robbing Peter to pay Paul created a problem because it doesn’t allow for rising costs and flat revenue.
This crunch was inevitable given the Township’s long-standing reliance on the water and sewer funds to balance the municipal budget. Many have asked why these increases have happened in 2020, not in 2018 or 2019.
First, significantly smaller increases were proposed in 2018 and 2019. They were not approved. This compounded the growing shortfall. Second, this was the final year we could have kept the water and sewer rates stagnant without both utilities going bankrupt. A major rate increase and bankruptcy were our only options.
If I had a choice, there would’ve been no rate increase this year. But I did not have a choice. The Council did not have a choice. And if you were in my shoes, you would not have had a choice, either. Myself and the members of the Council – Democrats and Republicans – pay the same water and sewer fees that you do.
Why was this rate increase approved unanimously? Because all members of the governing body recognized the severity of Parsippany’s fiscal issues, with deep and longstanding roots in past budgeting practices. This drastic change could have been avoided years ago. In most towns, water and sewer rates increase by small amounts each year, and water and sewer funds are rarely transferred to balance the municipal budget. Regrettably, those principles weren’t followed here, and we’re paying the price today.
Unfortunately, a number of lies have emerged around this issue. I will address them directly.
