Cedar Grove households could see their water and sewer bills climb nearly $69 a year starting in January, after the township council voted 5-0 to introduce two rate-increase ordinances this month. A typical household paying minimum charges would see its quarterly bill rise from $163.26 to $180.43 if the measures are formally adopted.
The proposed water rate would rise 12%, from $8.00 to $8.96 per 1,000 gallons, while the sewer rate would increase about 10%, from $7.47 to $8.22 per 1,000 gallons, according to TAPinto. For a household paying the minimum quarterly charge, that works out to the water portion rising from $40.00 to $44.80 — a $19.20 annual increase — while the minimum sewer bill would climb from $123.26 to $135.63, adding $12.37 per quarter and $49.48 per year. If the council gives final approval, the new rates would take effect with the January 2027 billing cycle.
Why Officials Say Rates Need to Go Up
Township Manager Joseph Zichelli said the water rate increase largely reflects higher charges the township is absorbing from its two bulk water suppliers, the North Jersey District Water Supply Commission and the Passaic Valley Water Commission, which have raised their charges to Cedar Grove by roughly 10% to 12%, per Zichelli's account to the same outlet. On the sewer side, a November memo from the township manager cited higher costs to haul sludge away from the sewage treatment plant daily, as well as the plant's heavy electricity use in processing incoming sewage.
Zichelli also emphasized a broader principle behind the increases: water and sewer operations are run as self-sustaining utilities that must pay for themselves through user fees rather than property taxes, the report notes. He said rates have been adjusted in each of the past three or four years to keep pace with rising costs.
A Years-Long Push for Bigger Increases
The proposed hikes are notably smaller than what a township-commissioned analysis once recommended. A water and sewer rate analysis submitted by CP Engineers to Cedar Grove Township on March 19, 2024 found that a more conservative and financially protective increase would have meant a 20% rise in both the water utility rate and the sewer utility rate, citing projected capital-improvement costs and debt service, according to the report posted on cedargrovenj.org. That same analysis documented that Cedar Grove's 2023 water operating fund ran a shortfall of $322,877, while the sewer operating fund came up $269,522 short.
Zichelli said that, based on data available so far, 2026 appears to be the second consecutive year that neither utility will run a deficit — a turnaround from the period before the 2024 rate adjustments, when the township could not say that either fund would avoid a shortfall. The 2024 analysis also compared Cedar Grove's costs with those of neighboring towns, estimating an annual water charge of $600 for 120,000 gallons of usage in Cedar Grove, versus $643.28 to $668.26 in Montclair, $659.75 in Fairfield and $840 in North Caldwell.
Next Steps for Residents
No members of the public spoke on either ordinance when they were introduced, per the same TAPinto account. The council has scheduled a public hearing and final vote on both measures for its Dec. 7 meeting, giving Cedar Grove residents a chance to weigh in before any rate increase becomes official.
The township's Water Department operates and maintains the water distribution system, including water mains, pumping stations and storage tanks, according to the township's website. For residents concerned about affording higher bills, the same township page notes that eligible low-income households that pay their own water and sewer bills may qualify for the Low-Income Household Water Assistance Program.
