By: Lauren T. Agnew
Essex County Executive Joseph N. DiVincenzo, Jr. announced on Wednesday, October 26ththat the Essex County Utilities Authority has erased over $102.8 million of debt and is now debt free.
DiVincenzo also announced that the $3.4 million in savings generated from not having to pay the debt will be passed to Essex County’s 22 municipalities through a reduction in garbage tipping fees.
The debt was fully repaid over the last 20 years and is an example of the conservative fiscal practices that DiVincenzo has employed while in office.
“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.
Getting Essex County’s budget in order and strengthening our financial standing are things I take very seriously. Today’s announcement shows that our austere and conservative budget initiatives are paying off,” DiVincenzo said.
“This also will help our municipal partners, who will see significant savings in the cost they pay to dispose of their solid waste.
Our municipalities are feeling the pinch because of inflation, rising costs and growing expenses and these savings will definitely help during this critical time,” he added.
“Being debt free is an example of the hard work of the County Executive and the ECUA. This makes Essex County stronger and better,” Commissioner Patricia Sebold said.
“As a government, we are able to accomplish so much because of the prudent decisions being made by the County Executive. These savings are impactful numbers for our municipalities,” Commissioner Brendan Gill said.
“Our County Executive had a clear vision for the ECUA and that has been to pay down our debt while continuing to provide competitive and affordable tipping fees for our municipal partners.
We are pleased to deliver on his promise, which puts the ECUA free and clear of any debt and helps our municipalities with lower garbage disposal fees,” ECUA Executive Director Elmer Hermann said.
“When Joe asked me to serve on the ECUA board, the first thing he mentioned was satisfying the debt. I have learned that when Joe says he is going to do something, it will get done,” said Nick Grieco, Chairman of the Essex County Utilities Authority’s Board of Commissioners.
“This is evidence of the leadership of the County Executive. This is a massive accomplishment and, as a Mayor, the money we are getting back will help offset the rising government costs in other areas,” Bloomfield Mayor Michael Venezia said.
When DiVincenzo was sworn into office in 2003, the ECUA had $102,814,450 in debt. Among the budgetary reforms DiVincenzo initiated were reducing the number of ECUA employees to less than ten people.
DiVincenzo 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.
With the debt erased, Essex County’s municipalities will see significant cost reductions in solid waste disposal fees. It is estimated a total of almost $3.4 million will be saved on an annual basis.