Under Duress, Council OK's Water Utility Application

The Newark Municipal Council Wednesday reluctantly voted to apply for the creation of a utility authority that would operate the city’s water and sewer system, but at least one member of the governing body vowed he would never support the creation of a so-called “MUA”.

“I never intended on voting for an MUA. I hope this doesn’t stop the state from giving us what we need,” South Ward Councilman Ras Baraka said.

Baraka and other officials also stressed Wednesday that their vote does not mean the council will ultimately approve the formation of an MUA.

Baraka joined seven other council members in voting to send an application to the state, a move the council felt compelled to take because failing to do so could have cost Newark $24 million in state aid.

“There are ideas for revenue other people have come up with. Unfortunately they won’t be of any help in 2012,” said North Ward Councilman Anibal Ramos. “My homeowners can’t afford a 30 to 40 percent increase in their property taxes.”

A utility authority would be a semi-autonomous agency with its own board and would be charged with operating and maintaining the water and sewer system. Its finances would also be separate from the city’s, meaning any debt incurred to repair the crumbling system would not appear on the city’s books.

Proponents of a utility authority say such an agency would be cheaper to run than keeping the water and sewer departments in-house, but residents have spoken out against the plan since it was first proposed a few years ago. Critics fear a utility authority would mean residents would lose control of their water and that an MUA is a step on the path towards privatization.

One condition of an agreement between the city and the state requires Newark to at least explore an MUA in order to continue receiving extra funding from the state known as transitional aid. The “yes” vote on the application is considered “a sign of good faith,” one state official said Tuesday.

Wednesday’s vote once again threw a spotlight on the rift between the council and the administration of Mayor Cory Booker. A strongly worded letter from Booker to the council, urging the governing body to vote yes on the MUA application, was obtained by The Star Ledger earlier this week.

Council members decried what they considered a high-handed, public  attempt to sway their vote. Baraka said he had first learned of Booker’s letter when he read excerpts in the paper.  Council President Donald Payne referred to Booker’s missive as “garbage.”

Also on Wednesday, the council voted to grant an easement to Hess Corp for the construction of underground electrical lines to the site of the Newark Energy Center, its proposed power plant in the East Ward. The council, which had originally voted against the easement, changed course after winning additional concessions from Hess, which had already pledged $23 million in cash and other spending to Newark in exchange for council approval.

West Ward Councilman Ron Rice, an outspoken critic of the plant on environmental grounds, was the lone “no” vote.