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Hotel Booking Newark residents expressed anger and confusion last night over what they said was the city's failure to properly publicize and explain a proposal to lease its watershed and water utilities to a nonprofit corporation that has promised to pay the city at least $90 million in revenue.

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Travel Agency In response, Mayor Sharpe James said most of the objections were "politically orchestrated."

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Cheap Hotel More than 60 people attended the three-hour public hearing sponsored by the Newark City Council and attended by seven of nine council members.

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Flight Booking Speaker after speaker complained that they did not understand the proposal, which James has termed the Water Optimization Plan.

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Travel Agent "I still would like this plan explained," Marian Fletcher said halfway through the meeting. "I really have not learned a lot."

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Hotel Chicago "People in the community don't have the faintest idea of what's going on," said Frank Hurtz. "Someone has failed with their responsibility because not many people have the foggiest idea."

Online Booking The complaints prompted Councilwoman Bessie Walker to propose holding at least three more hearings. At the end of the meeting, Councilman Donald Tucker asked the city clerk to draft a resolution ordering hearings in each of the city's five wards. The council will vote on the resolution at its next meeting.

Travel Health Insurance James, sitting toward the back of the council chambers with a bodyguard and Deputy Mayor Ronald Rice, stayed for the entire meeting but said the tone was less than genuine.

Hotel Reservation "These people are not confused. They are politically orchestrated by some council members," James said. "There have been some legitimate citizens with concerns, but this is orchestrated by council members who have vowed to never help the administration."

London Hotel Booking The subject of the hearing was James' proposal to reorganize the Newark Watershed and Development Corp., which oversees watershed land in Morris, Sussex and Passaic counties, as the Newark Infrastructure Management Corp. The new corporation would then run the watershed and water and sewer utilities, which have a combined 225 employees and a $79 million budget.

Discount Travel The new entity would float $90 million in bonds, which the city would take in three $30 million payments, as a concession fee to the city. The lease would last 40 years and the corporation would also assume $70 million of the city's current water and sewer utility debt. The agency would also bond more money to improve the aging water system.

Orlando Hotel Under legislation signed by Gov. James E. McGreevey in August, the city can use the money for property tax relief or improvement of water supply or wastewater facilities.

Booking Agency James, who is also a state senator, sponsored the legislation necessary to allow the plan to go forward.

International Travel Medical "We can follow the New York City plan of an 18 percent property tax increase ... or the Newark plan of identifying new sources of revenue to maintain and improve services and offer property tax ... relief to deserving citizens," James said.

New York Hotel One question that residents repeatedly asked was why doesn't Newark maintain control of its own facilities. "Why can't Newark set the rates and collect the money?" asked Eric Stokes.

Online Travel Booking Newark Watershed and Development Corp. Executive Director Zinnerford Smith and his consultant, attorney Glenn Scotland, explained that the nonprofit model will allow the city to raise additional revenue through bonding that the city can use for property tax relief. By doing things such as installing better meters, improving water fee collection and other operational changes, the agency can save money and pay off the bonds.

Travel Medical Insurance Currently, Newark's water utility can only bond to make improvements to the water system. Removing the water operation from the city will also allow the agency to operate without political concerns and make tough decisions such as raising rates or trimming employees based more on the model of a publicly traded corporation run to provide dividends to stockholders.

Miami Hotel "The idea is to allow the city to receive benefit from what is generally considered an underperforming asset," Scotland said.

Air Deccan Booking Tucker, a commissioner of the Passaic Valley Sewerage Commission which serves residents in four North Jersey counties, said he opposes the water plan because the city is in effect bonding to pay for "regular operational expenses," a practice that could place the city in fiscal danger if things don't work out.

Las Vegas Nevada Travel During the first two years under the Newark Infrastructure Management Corp., no jobs would be eliminated. But in the third year, the agency would perform an organizational evaluation that could lead to job cuts. Under the terms of the city's contract with the agency, the city would be responsible for finding positions for displaced water and sewer workers.

Las Vegas Nv Hotel "If the mayor and council think this is best for our city, then we think this is best for the city," said Rahman Muhammad, head of the union that represents nonsupervisory employees in the water and sewer department. "We just want to make sure employees are taken care of."

Hotel Florence Booking Online Muhammad was promptly booed and shouted down by residents.

Orlando Travel James and Smith would like to see the council pass the plan before the end of the year. But even if the council approves the plan, the Newark Infrastructure Management Corp. would have to go before the Board of Public Utilities, the Local Finance Review Board and the Department of Environmental Protection for approval, a process that could take months.

Hilton Hotel The council bond counsel has to issue an opinion and the council would then have to grant the agency permission before it floated the $90 million in bonds. With the $70 million in city debt and bonding for system improvements, the agency could have more than $200 million in debt shortly after its inception. Smith said there are still details of the contract that need to be ironed out.

Booking Delta Com Walker said the financial implications are why residents should be schooled on the plan and given a chance to voice their opinions. "We are talking about massive financial decisions that will affect the children of children to come," she said,

Travel Insurance Online By Jeffery C. Mays
Star-Ledger - 11/27/2002

Topic: Highlands

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