ATLANTIC CITY MUNICIPAL UTILITIES AUTHORITY SECOND PUBLIC HEARING ON THE PROPOSED 2015 BUDGET AND PROPOSED CHANGES TO THE RULES, RATES AND REGULATIONS
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1 ATLANTIC CITY MUNICIPAL UTILITIES AUTHORITY SECOND PUBLIC HEARING ON THE PROPOSED 0 BUDGET AND PROPOSED CHANGES TO THE RULES, RATES AND REGULATIONS Thursday, December, 0 G. Bruce Ward, Executive Director Linda R. Bazemore, Deputy Executive Director Stella Johnson, Board Administrator 0 TAKEN BEFORE: JACQUELINE M. ZARRILLO, Certified Court Reporter of the State of New Jersey, License No. XI0, at the ATLANTIC CITY MUNICIPAL UTILITIES AUTHORITY, 0 North Virginia Avenue, Atlantic City, New Jersey 00, commencing at 0 a.m CERTIFIED COURT REPORTER TILTON ROAD NORTHFIELD, NEW JERSEY 0 (0) -0
2 I N D E X PUBLIC (NO PUBLIC PRESENT.) PAGE 0 0
3 ATLANTIC CITY MUA 0 0 MR. WARD: Today is December the th, 0. It is 0 a.m. and today is the second Public Hearing of the Authority's proposed 0 Budget and proposed changes to the Rules, Rates and Regulations for the Authority for 0. Appearing today is my Administrative Assistant, Ms. Stella Johnson, and there are no members for the public at this time. I'm going to read into the record the Press Release of the hearings, which was published in the Atlantic City Press. "The November, 0 and December, 0 hearings will be held at the Atlantic City Municipal Utilities Authority, located at 0 North Virginia Avenue." Also appearing, and I'll take a second to also announce that the Deputy Director of the Authority, Ms. Linda Bazemore, is also present. "Both hearings will begin at 0 a.m. The budget is scheduled for adoption at the regularly scheduled Board Meeting on December, 0. "The MUA will also accept written comments. Comments received before the hearings will be read into the hearing record. Written comments not read at the hearings will be presented at the Board Meeting. The Board Meeting is open to the
4 ATLANTIC CITY MUA public." 0 0 For most customers other than residential, there will be a rate increase between.0 percent and. percent for water service in 0. Residential flat charges will increase by $0 per quarter and excess charges will increase by approximately $ per quarter for most customers with usage more than the allowance. The residential rate increase will be applicable on a per unit basis. Over the last several years, the Atlantic City Municipal Utilities Authority has seen its expenses rise, however, its water sales since 00, has shown a steady and continual decline. The MUA attributes the decline to two primary factors. First is the removal of hotels and housing in Atlantic City through demolition. The Authority has forecasted in the 0 budget a much more severe decline in sales. This is as a result of the closure of four casinos (Atlantic Club, Showboat, Revel and Trump Plaza) since the beginning of the year, with Trump Taj Mahal Hotel and Casino scheduled for closure in December of 0. The next significant factor in the MUA's revenue decline is water conserving devices. Water conservation is always promoted in order to minimize the wasteful use of
5 ATLANTIC CITY MUA 0 0 resources. Since, the MUA has seen an average gallons per capita per day in Atlantic City for residential customers drop from to, almost a percent reduction. However, despite increased demand, the Authority does expect to meet its revenue projection for 0. The 0 Proposed Budget is a fully funded budget providing for continuation of all of the Authority's major programs. The proposed appropriations for 0 are anticipated to be approximately $,00 less than the budgeted appropriations for 0. The decline is due primarily to a percent or $,0 decline in 0 Debt Service Principal payments, Debt Service and Principal payments. In addition, the 0 interest payments will be lower than 0 by $,00. Somewhat offsetting the decline are higher anticipated electricity costs of approximately $0,000. "The MUA's proposed increase will be applied as a two percent increase in the flat charge for all customers except for the residential customers, who will experience a $0 increase (per unit) for flat charges quarterly. In addition, all customers that experience higher usage than their
6 ATLANTIC CITY MUA 0 0 allowance will face an eight percent increase in excess charges. "The average residential single-family property in Atlantic City currently pays $. per year for water. The MUA is projecting that, with this rate increase, the average consumer will pay $. per year. This is a $. per year increase per household. "The connection fee rate will increase. "State Law sets a formula mandating the specific calculation of Connection Fees. State Law further requires that Connection Fees be recalculated at the end of every calendar year, and that all Debt Service and Capital Expenditures be included in the new calculations. "The net result is a proposed Connection Fee in 0 of $. per gallon of average daily flow. This applies to new construction." The MUA is also making changes to Rules, Rates and Regulations. The full text of the changes is available by contacting the MUA's offices. It is also available on the MUA's website, which is And again, at this time there are no
7 ATLANTIC CITY MUA 0 0 members of the public present, and my name is Bruce Ward, the Executive Director. I will be available and hold the Public Meeting open until p.m. If any members of the public do arrive, we will meet with and answer any questions they may have. And if any written comments appear, those comments will be answered in the ordinary manner and course of business. (A recess was taken from 0:0 a.m. to :0 p.m.) MR. WARD: Okay. I have returned. This is Bruce Ward. I have returned back to our conference room for the Public Hearing on the changes to the Rules Rates Regulations and the Budget for 0 for the Atlantic City Municipal Utilities Authority. The time is now :0 p.m. No members of the public attended the hearing. We will accept any written comments and certain written comments will be read at the Board Meeting, which is open to the public, and it will be held on December the th of this month. And that concludes the Public Hearing. Thank you, very much. (The hearing concluded at :0 p.m.)
8 C E R T I F I C A T E 0 I, JACQUELINE M. ZARRILLO, a Certified Court Reporter of the State of New Jersey, do hereby certify that I am neither a relative nor employee nor attorney nor counsel of any of the parties to this action, and that I am neither a relative nor employee of such attorney or counsel, and that I am not financially interested in the action. JACQUELINE M. ZARRILLO Certified Court Reporter License No. XIO DATED: December, 0 0
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10 J JACQUELINE [] - :, :, :, : JERSEY [] - : Jersey [] - :, :, : Johnson [] - :, : L last [] - :0 Law [] - :0, : less [] - : License [] - :, : Linda [] - :, : located [] - : lower [] - : M Mahal [] - : major [] - : mandating [] - :0 manner [] - : meet [] - :, : Meeting [] - :0, :, :, :0 members [] - :, :, :, : minimize [] - : month [] - : most [] - :, : MR [] - :, : MUA [] - :, :, :, :, :0 MUA's [] - :, :0, :, : MUNICIPAL [] - :, : Municipal [] - :, :, : N name [] - : net [] - : New [] - :, :, : NEW [] - : new [] - :, : next [] - : NO [] - : North [] - :, : NORTHFIELD [] - : November [] - : O offices [] - : offsetting [] - : ON [] - : open [] - :, :, :0 order [] - : ordinary [] - : P p.m [] - :, :0, :, : PAGE [] - : parties [] - : pay [] - : payments [] - :, :, : pays [] - : per [] - :, :, :, :, :, :, :, :, : percent [] - :, :, :, :, : Plaza [] - :0 PRESENT [] - : present [] - :, : presented [] - : Press [] - :, :0 primarily [] - : primary [] - : Principal [] - :, : programs [] - : projecting [] - : projection [] - : promoted [] - : property [] - : PROPOSED [] - :, : Proposed [] - : proposed [] - :, :, :, :0, : providing [] - : PUBLIC [] - :, :, : Public [] - :, :, :, : public [] - :, :, :, :, :, :0 published [] - : Q quarter [] - :, : quarterly [] - : questions [] - : R rate [] - :, :, :, : RATES [] - : Rates [] - :, :, : read [] - :, :, :, : recalculated [] - : received [] - : recess [] - : record [] - :, : reduction [] - : regularly [] - : REGULATIONS [] - : Regulations [] - :, :, : relative [] - :, : Release [] - : removal [] - : Reporter [] - :, :, : REPORTER [] - : requires [] - : residential [] - :, :, :, :, :, : resources [] - : result [] - :, : returned [] - :, : Revel [] - : revenue [] - :, : rise [] - : ROAD [] - : room [] - : Rules [] - :, :, : RULES [] - : S sales [] - :, : scheduled [] - :, :0, : SECOND [] - : second [] - :, : service [] - : Service [] - :, : sets [] - :0 several [] - :0 severe [] - : Showboat [] - : shown [] - : significant [] - : single [] - : single-family [] - : somewhat [] - : specific [] - : State [] - :, : state [] - :0, : steady [] - : Stella [] - :, : T Taj [] - : TAKEN [] - : text [] - : THE [] - :, : Thursday [] - : TILTON [] - : TO [] - : today [] - :, :, : Trump [] - :0, : two [] - :, : U unit [] - :, : usage [] - :, : UTILITIES [] - :, : Utilities [] - :, :, : V Virginia [] - :, : W WARD [] - :, : Ward [] - :, :, : wasteful [] - : water [] - :, :, :, :, : website [] - : written [] - :, :, :, :, : [] - : X XI0 [] - : XIO [] - : Y year [] - :0, :, :, : years [] - :0 Z ZARRILLO [] - :, :, :, :
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