New Jersey § 40a:26a-11

§ 40a:26a-11.

In addition to rates and rentals, a separate charge in the nature of a connection

fee or tapping fee for each connection of any property to the sewerage system may

be imposed upon the owner or occupant at the property so connected. The connection charges shall be uniform within each class of users and the amount

thereof shall not exceed the actual cost of the physical connection plus an amount

representing a fair payment towards the cost of the system and computed in the following

manner: a. The amount representing all debt service, including but not limited to sinking

funds, reserve funds, the principal and interest on bonds, and the amount of any loans

and interest thereon, paid by the local unit or units to defray the capital cost of

developing the system as of the end of the immediately preceding budget year shall

be added to all capital expenditures made by a local unit or units not funded by a

bond ordinance or debt for the development of the system as of the end of the immediately

preceding budget year; b. Any gifts, contributions or subsidies to the local unit or units received from,

and not reimbursed or reimbursable to, any federal, State, county or municipal government

or agency or any private person, and that portion of amounts paid to the local unit

or units by a public entity under a service agreement or service contract which is

not repaid to the public entity by the local unit or units, shall then be subtracted; c. The remainder shall be divided by the total number of service units served by the

local unit or units at the end of the immediately preceding budget year, and the results

shall then be apportioned to each new customer according to the number of service

units attributed to that connector, to produce the connector's contribution to the

cost of the system. In attributing service units to each connector, the estimated average daily flow

of sewage for the connector shall be divided by the average daily flow of sewage for

the average single family residence in the area served by the local unit or units

to produce the number of service units to be attributed. The connection fee shall be recomputed at the end of each budget year, after a public

hearing is held. The revised connection fee may be imposed upon those who subsequently connect to

the system in that budget year. The combination of the connection fee or tapping fee and the aforesaid sewerage service

charges shall be such that the revenues of sewerage facilities shall be adequate to

pay the expenses of operation and maintenance of the sewerage facilities, including

improvements, extensions, enlargements and replacements to sewerage facilities, reserves,

insurance, principal and interest on any bonds, and to maintain reserves or sinking

funds therefor as may be required under the bond covenants or any contracts, or as

may be deemed necessary or desirable.