January 27,2016
the staff of the Ridgewood blog
Ridgewood NJ, Ridgewood failed to send elected representatives to a mediation session Wednesday January 8th that was an effort to settle the long running class-action lawsuit against Ridgewood Water .Ridgewood Water is a public water utility owned by the village of Ridgewood , which services Ridgewood ,Wyckoff, Midland Park, and Glen Rock.
The class action lawsuit was filed against Ridgewood Water in Superior Court by Wyckoff officials in 2010, with the municipalities of Glen Rock and Midland Park joining the action as plaintiffs a year later.
The municipalities claim that Ridgewood Water artificially inflated its costs by commingling funds with the village budget and the utility raised its rates in 2010 by 21 percent and another 5 percent in 2011 and 2012. In total in the past 7 years rates have increased 37% which the plaintiffs called , “unlawful” and “excessive”.
The suit also contends the rate hikes were approved in an ordinance adopted by the village council, and characterizing these increases as “arbitrary, capricious and unreasonable and, accordingly, should be declared invalid and unenforceable.”
The suit also suggests Ridgewood officials conceived of the fee increases as a way to offset the village’s annual municipal budget using the utility to offset non related expenses .
In a more recent press release the plaintiffs called the rate increase a Village of Ridgewood scheme and that the Village transferred wholly unrelated operating costs to Ridgewood Water and used the rate increase to in-effect subsidize Ridgewood Tax payers with Wyckoff, Midland Park, and Glen Rock rate payers.
This action seeks millions in refunds for customers in all three towns. Refunds paid for by Ridgewood tax payers. While in the past the Mayor seemed to suggest confidence in the resolution of this law suit . The Ridgewood blog has continued to warn over and over that the Village faced significant liabilities due to Ridgewood Water in both billing actions ,infrastructure and water quality.
A long term plan for either disposal of the utility or a financing major strategic upgrade is long over due .
