SENATE COMMUNITY AFFAIRS COMMITTEE

STATEMENT TO

SENATE, No. 429

STATE OF NEW JERSEY

DATED: MARCH 7, 1996

      The Senate Community Affairs Committee reports favorably Senate Bill No. 429.

      This bill would provide the Township of Mount Holly with a host municipality benefit to be paid by the Mount Holly Sewerage Authority. The benefit would be calculated on the basis of the amount of wastewater processed annually at the wastewater treatment facility and received from municipalities within the authority's service area, and the amount of wastewater or sludge transported from other municipalities or other generators.

      The bill would require the authority to pay the host municipality annually and would allow that municipality to anticipate the amount of the benefit for the purpose of preparing its annual budget. The bill would allow the authority and the host municipality to negotiate the manner of payment of the benefit as either: a payment in lieu of taxes; an exemption from the host municipality's fees and charges for treatment of its wastewater; a lump sum cash payment or payments in accordance with a schedule; or, any combination thereof.

      Finally, the bill would provide that payment of the host municipality's benefit would be considered a cost of operation and maintenance of the authority for which rents, rates, fees, or other charges are collected.