City Council unanimously approved new annual sewer fees over the next five years, including a roughly 5 percent rate hike, effective Oct. 1, 2020 Jan. 1, 2020.

The governing body approved the ordinance (O-18-19) by an 8-0 vote during its regular, public meeting on Monday night, following a public hearing where there was no comment from council members or citizens. The ordinance passed on first reading, introduced at the August regular meeting.

Due to an error in the original ordinance, new legislation (O-28-19) was introduced at the Oct. 7 regular meeting, setting the correct effective date of Jan. 1, 2020 on the new sewer fees. The measure is expected to be approved at the combined pre-meeting conference/regular meeting of City Council on Nov. 12.

Annual sewer fees currently are $290 for a single-family home, $455 for a two-family home, and  $235 for a condominium. Single-family homes would see sewer rates rise $15 per year through 2026, reaching $400, under the proposed ordinance:

• 2020, $305
• 2021, $320
• 2022, $335
• 2023, $350
• 2024, $365
• 2025, $380
• 2026, $400

For each additional family unit above a two-family, the annual charge is $455 plus $177 for each additional unit. Under the proposed ordinance, that would change to whatever the current year amount is, plus $185 for each additional unit:

• 2020, $478
• 2021, $500
• 2022, $526
• 2023, $552
• 2024, $580
• 2025, $610
• 2026, $640

For condominiums, the annual service charge is $235 and would rise annually as follows:

• 2020, $247
• 2021, $259
• 2022, $272
• 2023, $285
• 2024, $300
• 2025, $315
• 2026, $330

The annual service charge for commercial and industrial properties is $410 plus an additional $4.67 per 1,000 gallons used. For significant industrial users, like Merck, the rate is $6.20 per 1,000 gallons used. Commercial and industrial properties would see an increase in fees as follows:

• 2020, $430, $5.15
• 2021, $452, $5.40
• 2022, $475, $5.65
• 2023, $498, $5.90
• 2024, $523, $6.25
• 2025, $549, $6.50
• 2026, $576, $6.85

For nonprofits, apartments and governmental entities, the minimum annual charge and usage per 1,000 gallons would be as follows under the proposed ordinance:

• 2020, $160, $3.25
• 2021, $169, $3.40
• 2022, $177, $3.60
• 2023, $186, $3.75
• 2024, $195, $3.90
• 2025, $205, $4.15
• 2026, $215, $4.30

Years ago, sewer rates were included within local property tax bills. Sewer rates were separated from municipal tax bills starting in 2007, when the city established a flat annual fee of $245 for single-family homes. That annual usage fee increased by about 8 percent in 2009 to $265. Sewer rates were raised to the current rate of $290 for single-family homes in 2017.

Rahway is among 14 municipalities that uses the Rahway Valley Sewerage Authority (RVSA). The facility on East Hazelwood Avenue serves about 250,000 residents and 3,500 industrial and commercial customers and is governed by a board with appointees from each of the 14 towns. Day-to-day operations are run by an executive director and staff.