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PATERSON — The Passaic Valley Water Commission is raising the fees charged to its customers by 5.9% per year for five years to help pay for a massive $893 million capital construction plan, the largest in the agency’s 98-year history.
Commission officials acknowledged they are not sure whether additional rate increases will be needed in light of the unprecedented size of the water company’s borrowing plan.
One of the first projects on the commission’s work list will be new storage tanks to replace the Levine Reservoir near the Great Falls in Paterson. The $42 million job is scheduled to start this year after lawsuits delayed the construction contract, officials said.
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The commission is owned by the cities of Paterson, Passaic and Clifton, with its governing body of seven commissioners appointed by those municipalities’ mayors. The representatives of the three mayors approved the rate hikes in November 2023, but there was no news coverage of that decision.
Water commission officials told Paterson Press on Tuesday that the hikes would cost the average residential customer an extra $3.05 per month.
Paterson Mayor Andre Sayegh and Clifton Mayor Raymond Grabowski did not respond to messages asking for comment about the water rate increases.
Passaic Mayor Hector Lora said the timing of the increases was not “the greatest,” because people are facing higher prices for so many things right now. But Lora said he thinks the need for the increased rates is justified.
“People need safe drinking water,” the Passaic mayor said. “You never want to see increases, but these are the tough decisions you need for better quality services.”
Commission officials said the massive borrowing plan stems from necessary improvements that have not been done for decades.
Executive director Jim Mueller said the water treatment facility in Little Falls has not had major work done in more than 25 years, while the commission’s street distribution system has not had significant repairs for more than 50 years.
More than 70% of the commission’s water main lines in Paterson and Passaic are more than 100 years old, Mueller said.
650 miles of water mains
Overall, the PVWC has 650 miles of water mains, Mueller said. In the past five decades, the water company has upgraded between one and two miles of water mains per year, he said. The new capital project will allow the commission to repair between four and six water mains per year, Mueller added.
The aging of the system is starting to create problems, officials said. In 2024, the commission had 116 water main breaks, Mueller said. But in January alone this year, the commission had 52 such breaks, he added.
“We have to start catching up on these things,” Mueller said.
Commission officials said the rate increases are estimated to generate an extra $5 million in revenue. Paterson Press asked if additional hikes would be needed to cover the $893 million in borrowing. Officials said they would figure that out in subsequent years.
Plea for updates on water system work
Bob Guarasci, executive director of the nonprofit New Jersey Community Development Corporation, said he hoped people who live near the Great Falls would be given information about the PVWC’s construction schedule for the Levine Reservoir water tanks.
Guarasci said he was not aware of the five 5.9% increases that are taking effect.
“I’d like to talk with Jim Mueller about a mechanism to alert residents to any impending increase in rates and perhaps holding a public hearing to give ratepayers an opportunity for dialogue,” Guarasci said.
“An annual forum at which ratepayers can talk about service and other issues would be very well received by residents and likely leaders within the three municipalities that own PVWC,” Guarasci said.
The PVWA provided Paterson Press with this breakdown of its $893 million in capital projects: