WEST MILFORD The campaign to introduce a new water use surcharge to compensate towns like West Milford has received a boost. The New Jersey League of Municipalities, a gathering of all of the state’s 566 towns, boroughs and municipalities, has agreed to endorse the plan and use all of its influence to bring the idea to fruition. The backing of the league will place further pressure on the state legislature to initiate and impose the new tax. The municipalities’ organization gave its approval to the introduction of a new tax at its annual conference held in Atlantic City over four days in mid November. The new tax would charge New Jersey water users who receive their drinking water from the Highlands preservation area, the 398,000 acre area designated by the state to be preserved in part for the supply of water. Mayor Joseph DiDonato led the township’s presence at the event and the task of persuading the league to include this idea in its legislative plans for 2006. The victorious DiDonato spoke to thank those who assisted the township in achieving this endorsement. DiDonato said “We were successful in having the league adopt the resolution in favor of West Milford and other watershed towns.” The resolution calls upon the governor and state legislature to act in accordance to the costs associated with protecting the state’s drinking water by charging a fee for public water system customers throughout New Jersey. The revenue would provide property tax relief to those public entities within the state whose property values and development potential are reduced. There is some concern that any money raised by such a tax would be available only for preservation purposes rather than for property tax relief, however DiDonato is confident the benefit of the surcharge would be felt directly in township budgets rather than open space. Although no specific plans are in place yet it is thought that if implemented those in receipt of water from the highlands area would be expected to pay as little as one or two cents extra per month. The fund generated would be sent directly to towns and boroughs in the preservation area. The property taxes paid by residents in those towns, like West Milford, could see substantial relief if the proposal is adopted. The amount which could be raised by the plan is speculative however estimates place it anywhere between $2m to $4m. These figures far exceed the Watershed Moratorium Aid currently received by the council from the state which amount to a little over $750,000. West Milford is entirely within the area preserved by the Highlands Act. The mayor and council members have regularly claimed that the legislation negatively impacts the township’s ability to increase their financial income due to strict building limits placed on them by the statute. The act prevents almost all new commercial development within the area and therefore the opportunity for towns like West Milford to raise funds from new ratables. The act is also causing several landowners to launch tax appeals on the basis that their property value has decreased as a direct result of the Highlands Act. The water surcharge tax may provide the state with a solution to the problem of sustaining zero major development in the highlands while recompensing the towns and residents in the preservation area. The Highlands Act was implemented in August 2004 by former Governor James McGreevey to preserve water resources for over 3.5 million New Jersey residents. The act was also designed to conserve wetlands, forests and sites of environmental and historic significance.