News

By Dan Moffett

    The prospect of lower rates and improved customer relations was enough to persuade Hypoluxo council members to end a decades-old relationship with Manalapan and switch to Boynton Beach for water services.
    On May 17, the Town Council unanimously approved a plan to negotiate an early end to the current contract with Manalapan and work out the final details of a deal to join Boynton’s fast-growing utility system.
    “We heard proposals from both of the competing water utilities, and they were pretty clear to understand,”  Mayor Michael Brown said. “I think, without a doubt, Boynton Beach’s offer was much more beneficial to the town of Hypoluxo.”
    Boynton has offered in-city rates to Hypoluxo, the same prices that Boynton residents are paying. The roughly 550 Hypoluxo customers who get their water from Manalapan can expect an immediate 25 percent decrease in their bills, Boynton officials have said.
    “Our rates are low because we have great economies of scale,” said Colin Groff, Boynton’s utilities director.
    With more than 110,000 customers, Boynton’s system is about 12 times larger than Manalapan’s. “We just can’t compete with what they’re offering,” said Linda Stumpf, the Manalapan town manager.
    Boynton also provides automated billing and meter reading to its customers, services Manalapan doesn’t have.
    Still to be resolved are  Hypoluxo’s buyout terms with Manalapan. The contract between the two municipalities is scheduled to expire in 2020. Boynton officials have told Hypoluxo they will cover some of the town’s costs to get out of the Manalapan agreement. Brown said he hopes the switch can be completed by this summer.
    “We’ll move as quickly as we can to get council’s approval,” Brown said. “It could be 30 days, it could be 60 days, it just depends how quickly we move through the process.”
    With Hypoluxo’s exit, Manalapan’s utility loses a significant cash stream — roughly $1.3 million in revenue — that could affect its operation over the long term. Stumpf said the town is exploring other options for the utility.