Trash to treasure? AH considers town car wash ALYSSA PASSEGGIO, Senior Staff Writer, The Courier, July 17 Posted:07/18/08
Click on picture to Zoom
While prices rise for everything from gas to milk, what is better for a municipality than a source of revenue? Two.
Atlantic Highlands has used its harbor as a revenue source to prevent tax hikes despite constant budgetary increases over the years.
Recently, Borough Clerk Dwayne Harris proposed the borough invest in another project to produce revenue for the town: a car-wash facility.
An abandoned car-wash facility has sat vacant on West Avenue for about three years, while borough officials debated purchasing the property for various projects.
“The borough would miss a wonderful opportunity if they let that property go unpurchased,” Harris said.
Harris noted that as of February 2009, storm water management regulations would require that residents and municipalities purchase carwashes, rather than rinsing vehicles in a driveway.
The abandoned facility was equipped with the ability to recycle water, which is a requirement for car-washing facilities as of 2009, Councilman Louis Fligor said.
“That’s like the Cadillac of carwashes over there,” Fligor added.
Harris estimated that if the borough purchased the property for $1 million and invested about $250,000 the 20-year bond service payment would be about $100,000 a year.
Further, even after $65,000 in salary, $28,000 in lost tax revenue, $15,000 in utilities and $5,000 in supplies, the total cost per year would be about $226,000, according to Harris’ calculations.
The clerk said the investment would turn back into a profit maker through the residents and municipalities that will need carwashes.
There are about 2,800 homes in the borough with at least one car in the driveway, Harris said. After surveying about 50 people, Harris figured that people tend to pay about $20 twice a month for carwashes.
Harris recommended residents see a discount with $5 washes and outsiders be charged $10. If just residents paid for two carwashes a month, the borough would receive $366,000 in revenue a year, he said. That is a profit of $109,000, which is about three points on the tax rate, he added.
Harris also noted that surrounding municipalities would either have to build a facility or find a place to wash town vehicles and suggested the borough could reach out for the business.
Police Chief Jerry Vasto pointed out that a carwash facility could create a traffic problem and that a waiting pattern should be well thought out.
Resident William Phillips pointed out that the facility might not still be functional after three years.
Atlantic Highlands Mayor Fred Rast noted that the idea was still in the conceptual stages but that it was worth looking into. Borough Administrator Adam Hubeny and Harris agreed to do further research into the idea and report back.
Back
To read more stories in this week's issue, pick up a copy of The Courier at your local newstand.
