Hopewell Borough business owners voiced their frustrations about increased water bills affecting operational costs and presenting an additional burden at recent Borough Council meeting.
They also relayed their displeasure with how the new water rates have been distributed and how bills have increased significantly since the rates were implemented earlier this year.
Officials had approved the increase of water rates in April to raise an additional $220,000 to cover the costs of the water department. In 2023, the water department was $108,000 over budget due to a significant water leak on residential property.
The borough had to purchase a lot of additional water from New Jersey American Water because of the leak that was between the borough’s system and the residential house, officials said.
Hopewell’s source of water comes from two areas – well No. 4 and the borough’s interconnection with New Jersey American Water.
“There are many factors at work here science, economics, neglect and others but we do not think we should bear the brunt of any of it,” said Clark Reed, building owner in Hopewell, who spoke on the behalf of some businesses. “We paid our water bills in good faith for years and the new rate is simply not distributed fairly.
“This is very simply unsustainable for the restaurants and we as a group as of right now are refusing to pay our water bills…. restaurants operate on a 15% profit margin and when you think about how much business you have to do to make a small profit it is not fair what you are asking us to burden.”
Reed requested that restaurants pay the New Jersey American rate for water and not a penny more and there be a separate rate category for restaurants and around the laundromat that will be a cap.
“Residents must understand these places are a part of the community and not using any more water than they are using before,” he added.
“If the Council chooses not to retroactively adjust these water bills, I will make it my mission to walk Broad Street and recruit all the hairdressers and anyone else who I believe has water usage and those businesses will join our protest to not pay next quarters water bill and your hole in your budget will grow much larger.”
Mayor Ryan Kennedy noted that the borough can’t change how much they need to spend on the water system, but they can change how it is allocated between the bigger and smaller users.
“There is a commitment to revisit that in short order so that any difficult decision we make reallocating costs between businesses and homeowners will happen in the next several months before you get another bill from us,” he said.
Kennedy explained that they do not have the statutory tools to help people out on a short-term basis.
“I’ll let you make your own decisions on what to do with your bills,” he said. “I do not believe we have the ability to waive the statutory interest or unfortunately there is a set course of things that happen when you don’t pay taxes or bills.
“We don’t have a lot of options to waive or change what happens. Other than the automatic interest that comes without paying taxes or bills, there is not a lot we have available to do on that.”
Otto Zizak, who owns Ottoburger, shared how his business had experienced a 600% increase in its water usage bill from the previous quarter.
“Our first quarter at Ottoburger was 30, which probably include some low use weeks,” he said. “But our current usage is 190. It is a 600% increase from our previous water usage.”
Tensions rose when there was a suggestion that meter water usage readings were being tweaked.
“Meters do not over read they can under register but mechanically it is impossible for them to over register,” Councilman David Mackie explained. “Second, our pressure and our system are determined by the elevation of our reservoir above the town which as far as I know nobody has changed.
“So, it is not a pressure change. It is not the meters. The only plausible answer that I know of I understand you guys have looked at this is a leak on your end. Whatever happens downstream at the curb stop is your responsibility.”
The councilman took issue with any accusation that the borough was manipulating the numbers to get more revenue.
“This is an unacceptable thing and accusation to make in public with no evidence. It just unacceptable. It is your responsibility to figure this out,” Mackie said.
“We will work with you any way we can. To suggest that the borough is in some way manipulating these numbers to generate revenue is just utterly and categorically false and I won’t sit there nicely and say thank you for your comments.”
Zizak, speaking for himself, said he is not accusing anyone of anything.
“I am respectfully asking that you guys see our side,” he said. “We were super careful, checked for leaks, there aren’t any. The bill comes, it is 600% from the previous bill.”
Nathaniel Davidson, owner of The Hopewell Laundress, a laundromat on East Broad Street, said his rate increased a little bit, but that he has usage that quantifies that.
“You were just mentioning again a potential increase in prices, and it will be adjusted to homeowners at this point,” he said. “I don’t understand why this wasn’t distributed more to homeowners before.
“We are talking about a previous leak that we are now picking up the burden on. If we keep hitting these 60% increases in our water bills, if you split it up against all the homeowners it is not that big of a monetary difference. But we are talking about large users who are bearing the brunt of this, and it is ludicrous.”
Mackie acknowledged there is a dilemma no matter what decision is made.
“If you essentially shift the rates down from one group you are adding to another group,” he said. “There are all these different arguments … businesses can pass on the cost to their consumers. The other is the homeowner can’t pass on the cost.
“There is no magic answer to this. Everything you do to shift that rate structure hurts someone and maybe helps someone.”
Mackie said the water committee has had a discussion to see if there was something the borough could do to alleviate some of the burden on businesses in the community being high users who simply do not have a choice on their water usage.
