Essex County Utilities Authority Climbs Out Of $100M Hole

ESSEX COUNTY, NJ — After 19 years, the Essex County Utilities Authority (ECUA) has finally climbed out of a financial hole that once topped more than $100 million. And it is good news for the 22 towns and cities of Essex County, officials announced Wednesday.

The ECUA – which is responsible for several garbage, recycling and disposal-related duties in the county – had about $102.81 million of debt in 2003, according to Essex County Executive Joseph DiVincenzo Jr. See the agency’s latest budget here, and audit here.

Here’s how the ECUA reached “debt-free status,” his office said:

“Among the budgetary reforms initiated were reducing the number of ECUA employees to less than 10 people. [The county executive] and the ECUA also negotiated favorable tipping fees (the cost to dispose of household waste) paid by municipalities with some of the revenue being used to pay off the debt. In addition, the ECUA took advantage of favorable interest rates and refinanced outstanding debt at lower rates in 2006, 2009 and 2016.”

Why should residents care? The $3.37 million in annual savings generated from not having to pay the debt will be passed forward to Essex County’s 22 municipalities through a reduction in garbage tipping fees, officials said.

DiVincenzo’s office provided the following breakdown of the expected savings for each town and city:

“Paying off the ECUA’s debt has been a long-range goal of mine since I was first elected, and I am so excited that the day of the ECUA being debt-free has finally come,” DiVincenzo said.

“Getting Essex County’s budget in order and strengthening our financial standing are things I take very seriously, and today’s announcement shows that our austere and conservative budget initiatives are paying off,” DiVincenzo said.

The county executive said the milestone will also mean “significant savings” for solid waste disposal costs in each town and city.

“Our municipalities are feeling the pinch because of inflation, rising costs and growing expenses and these savings will definitely help during this critical time,” DiVincenzo said.

• See related article: Rallies, Outrage In Essex County Over NJ Health Care Hikes
• See related article: Big Gap Between Highest, Lowest Property Tax In Essex County
• See related article: Tax Gap In Essex County: Many Wealthier Towns Pay Lower Rates

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