Opinion ID: 2339485
Heading Depth: 2
Heading Rank: 2

Heading: The Sayreville Water-Connection Fees.

Text: A different factual situation is presented here because construction of Sayreville's water system has been financed in large part through the imposition of user fees, not through general taxation. As a result, not all property owners have contributed toward creation of the capital base; only those who have actually used the system have contributed. In exacting connection fees, the Borough may require that new connectors pay a proportionate share of original construction costs retired by prior connectors. We note that the plaintiffs have raised a challenge to the methodology employed by the Borough to determine the capital contribution of prior connectors similar to the objections lodged against the sewer-connection fees. We do not attempt to resolve those factual issues on this record. Finally, concern has been raised that the municipality will not, in fact, dedicate the funds to the equalization of benefit between improved and unimproved properties. Although this issue is not before us, the parties will want to consider the requirements of N.J.S.A. 40:62-2 that utility receipts be maintained in a separate schedule of accounts under appropriate principles of municipal-accounting law, and the willingness of the Borough, expressed before us, to dedicate these funds to equalization.