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City of Rahway
1 City Hall Plaza
Rahway, NJ 07065
(732) 827-2000
 

 

 

 
Frequently Asked Questions (FAQs) about your sewer bill

 

Q:        Why is the City charging me separately for sewers rather than continue to include it in my property tax bill?

 

A:        In 2007 the City conducted a study of our sewer charges from the Rahway Valley Sewerage Authority (RVSA) and discovered that, under the old system, residential property owners were generating 50 percent of the City’s total wastewater but were paying for 62 percent of the cost.  Having residents subsidize commercial and industrial users was unfair and had to change.  This will bring greater transparency and accountability to residents as to how much of their tax dollars go towards maintaining our sewer system, as well as provide a more equitable way of charging all sewer users in the city.

 

Q:        What are the sewer fees?

 

A:        Effective January 1, 2008, the following sewer fees for various residential properties will be billed as follows:
 

                                                   Quarterly                          Annually

Single-family home                    $61.25                               $245

Two-family home                               $98                                    $392

Three-or four-family home       $98 + $36.75 per unit      $392 + $147 per unit

Condominium                             $49                                    $196

Senior Citizens *                               $12.50                               $50

* Must qualify for a senior citizen tax deduction pursuant to the provisions of
   N.J.S.A. 54:4-8.40 et seq.

 

These residential fees are expected to remain unchanged for the next five years.  Commercial and industrial users are being billed based on usage plus a minimum annual charge. 

 

Q:        How will I be billed for my sewer use?

 

A:        Your sewer charge will be indicated by a separate line item on your quarterly water bill.

 

Q:        I just received a sewer bill in February.  Why did I receive an additional sewer bill in March?

 

A:        Since the City had to work with United Water to set up a new billing system for sewer customers, the first quarter bills were mailed out slightly later than usual.  For the second quarter you will receive two separate bills.  First bill will be for sewer fees (April, May, June) second bill will be for water usage.  Third and fourth quarter bills for 2008 will be mailed out during their normal quarterly schedules.
 

Q:        Isn’t this sewer charge just an additional tax that I will now have to pay?

 

A:        Since users will now receive separate sewer bills rather than be charged through the municipal property tax, the residential rate payer will now pay a rate that is less than had the charges remained as part if the local property tax bill.  The average City residential property taxpayer will see the following estimated savings in 2008:

 

Estimated savings per single-family household
Local property taxes vs. sewer fees

 

Assessed value         Projected Taxes     Projected Sewer Fees       Projected Savings

 $100,000                         $294                               $245                               $49

   $125,000                         $368                               $245                               $123

   $133,000                         $391                               $245                               $146

   $150,000                         $441                               $245                               $196

   $175,000                         $515                               $245                               $270

 

Q:        How is this change affecting the 2008 municipal budget?

 

A:        Mayor Kennedy announced in January that because spending was kept well under the state-mandated cap and due to an infusion of $10 million in ratables due to new redevelopment, this year’s budget is delivering a zero percent local property tax increase.  Since the City has no control over the budgets of the Board and Education and County government, your total property tax bill may still increase, however.  Rahway presently enjoys one of the lowest and most stable property tax rates in the county and provides many additional municipal services not found in other municipalities.

 

Q:        I am a senior citizen.  Am I eligible for a discounted sewer charge?

 

A:        As indicated in the first chart above, certain seniors may be eligible for a substantial savings on their annual sewer bill according to the State eligibility requirements below:

 

o   65+ years

o   Own and occupy dwelling

o   Annual income limit not to exceed $10,000 (combine for couples) not including Social Security, but all other income (pension, interest, dividends, rental, etc.)

 

If you qualify, please contact the Tax Assessor or call (732) 827-2030 for an application.