VILLAS — Following a meeting Dec. 19 between members of Lower Township Council and Lower Municipal Utilities Authority (MUA), Mayor Walter Craig told the Herald the township will move forward with dissolving the MUA and creating a water and sewer department.

“The consensus of council is we are going to move forward with the dissolution of the MUA,” said the mayor.

The meeting lasted one hour and did not provide answers council has been seeking for the past nine to 12 months about operation of the MUA, he said.

“From information we’ve garnered from other townships that dissolved their MUAs, listing the pros and cons of moving forward with this endeavor, the bottom line is if the majority of council feels this is in the best interest of the township and in the best interest of the ratepayers of the MUA, then we move forward to make it part of the township,” said Craig.

He said the next move is to put out a request for an attorney who has handled a similar dissolution. Once a special counsel is hired, that attorney will work with Township Solicitor Paul Baldini.

Craig said council would introduce an ordinance for dissolution of the MUA and apply to the state Local Finance Board for approval and hold a public hearing on the ordinance. Another ordinance would create a township department of water and sewer, he said.

“There are issues with the department of personnel regarding titles of people that work at the MUA and what title that would transfer to or what the equivalent title would be in a township capacity,” said Craig.

He said the process of dissolution could take anywhere from three months to one year.
If the majority of MUA Board of Commissioners members are opposed to the dissolution, they could initiate an appeal process, said Craig.
While the dissolution of an MUA is not an everyday event, townships that have undertaken the process have found it beneficial, said the mayor.

“It’s been cost effective, it’s provided more efficient services to the ratepayers and taxpayers of the township,” said Craig.

It is uncertain at this time whether a freestanding department of water and sewer would be created or the MUA would be absorbed into the township’s Department of Public Works.
If the township assumes operation of the MUA, it also receives all its debt service, which totals about $20 million, according to Auditor Leon Costello who serves both the MUA and township.

Craig said accountants told him with townships rating, we would be in far better shape to pursue expansion of services than the MUA. He said the township would be capable of obtaining more funding than the MUA.

Craig said the township is not selling the MUA to the American Water Company, not portioning off the sewage operation to the county but intends to operate it as a township entity, a revenue-generating department.

“We will do everything we can to maintain positions for every single person that works at the MUA,” said Craig.

He said there are two unfilled positions in the township that could provide a job for someone who must to be transferred from the MUA.
Craig said it is likely the same amount of personnel will be needed to maintain the MUA.
Savings will result from elimination of the duplication of professional services such as engineering, the solicitor and auditor, he said.

“One of our first intentions is to have a forensic engineering study done of the plant,” said Craig.