Post by admin on Oct 12, 2008 15:26:45 GMT -5
www.dailyrecord.com/apps/pbcs.dll/article?AID=/20081012/NEWS02/810120335/1123
TRENTON -- Though the price of road salt has skyrocketed across the country in the run-up to the coming winter, New Jersey governments are only feeling a slight pinch.
In these tough budget times, however, hard choices are going to have to be made because there's no skimping on an essential winter tool vital to protecting motorists.
Severe storms across Midwestern states last year caused supplies to dwindle, said Dick Hanneman, president of the Salt Institute, a trade association. States hit hard last year on average have purchased nearly 40 percent more this year, Hanneman said, causing salt prices per ton in those areas to triple.
New Jersey has not been hit as hard, however, benefiting from being a coastal state, which allows for salt to be bought both domestically and from overseas. But the state still feels a small effect from the low supply in the Midwest, and combined with an increase in fuel and production prices, the cost of road salt has risen nearly 40 percent in certain cases.
L. Mason Neely, finance director for East Brunswick, said municipalities will have to look to cutting or trimming back nonessential services such as grass cutting or municipal grounds maintenance if the uptick in price strains their budget.
"I do think they are going to have to reprioritize their budgets because there is not going to be a lot of money," Neely said.
East Brunswick last year paid nearly $62 per ton of road salt but is paying more than $85 per ton this year, Neely said.
Although last winter was considered mild, the state Department of Transportation went through 117,177 tons of salt in 27 winter events, said DOT spokeswoman Erin Phalon. The price of road salt for the state this year jumped almost 28 percent -- from $54 per ton to $69 per ton.
Phalon said there were no plans to cut back as a result of the jump in price.
"We consider winter preparedness a necessity and highway safety is our top priority, so we have no plans to skimp on road salt," Phalon said.
This year is expected to be worse than last year's mild winter, said Joe Bastardi, chief long-range forecaster for AccuWeather. Bastardi said a "more normal winter" is expected but that New Jersey towns are going to have make sure they are prepared because this year is likely to be colder and stormier than the recent past.
Even if a municipality budgets for a certain amount of salt, there is always the chance more will be needed midseason. The extra cash usually comes at the expense of something else.
"Either you transfer money from another line item into that account or you declare emergency," said Stafford Township administrator Paul Shives.
There could be another option as well.
"Everybody is on their knees praying its going to be a mild winter; that we're not going to have a lot of ice and snow," Neely said.
Despite the price increase, Parsippany's director of the streets and road division, Greg Schneider, said having less of a supply is not an option. Last year, Parsippany spent nearly $70,000 last year on its winter supply and Schneider said they anticipate paying more this year.
"I cannot by any means affect safety. Salt is a safety issue in this town, and I will do what I have to do to keep these streets clean," said Schneider.
Some places avoid this year's price spike because they have long-term contracts in which prices will not fluctuate. Joseph Bellina, Freehold borough administrator, said the shortage has not affected his town -- the price this year remains $65 per ton -- because of its two-year contract with a supplier.
"It makes it easier to forecast your budget," Bellina said. "It's a good way to lock price in, so you're not held captive to the marketplace."
Although municipalities have the option to join with other towns in cooperative purchasing agreements to help drive down prices by buying in bulk, there is no such option to partner with the state. Supporters of such a pact say it would most likely yield lower prices for the state and municipalities -- with the only added cost being payments for transportation to the different locales.
Tom Bell, spokesman for the state Department of the Treasury, said a letter was sent to counties in May asking if they or any of their municipalities wished to enter into such a program, but it received no interest.
"We basically got no response from the counties, so we just went out and did our usual bid," Bell said, adding a similar offer will be made next year.
Bellina said Freehold borough has such an agreement with Freehold Township, Marlboro and Manalapan, which he said has kept prices low.
TRENTON -- Though the price of road salt has skyrocketed across the country in the run-up to the coming winter, New Jersey governments are only feeling a slight pinch.
In these tough budget times, however, hard choices are going to have to be made because there's no skimping on an essential winter tool vital to protecting motorists.
Severe storms across Midwestern states last year caused supplies to dwindle, said Dick Hanneman, president of the Salt Institute, a trade association. States hit hard last year on average have purchased nearly 40 percent more this year, Hanneman said, causing salt prices per ton in those areas to triple.
New Jersey has not been hit as hard, however, benefiting from being a coastal state, which allows for salt to be bought both domestically and from overseas. But the state still feels a small effect from the low supply in the Midwest, and combined with an increase in fuel and production prices, the cost of road salt has risen nearly 40 percent in certain cases.
L. Mason Neely, finance director for East Brunswick, said municipalities will have to look to cutting or trimming back nonessential services such as grass cutting or municipal grounds maintenance if the uptick in price strains their budget.
"I do think they are going to have to reprioritize their budgets because there is not going to be a lot of money," Neely said.
East Brunswick last year paid nearly $62 per ton of road salt but is paying more than $85 per ton this year, Neely said.
Although last winter was considered mild, the state Department of Transportation went through 117,177 tons of salt in 27 winter events, said DOT spokeswoman Erin Phalon. The price of road salt for the state this year jumped almost 28 percent -- from $54 per ton to $69 per ton.
Phalon said there were no plans to cut back as a result of the jump in price.
"We consider winter preparedness a necessity and highway safety is our top priority, so we have no plans to skimp on road salt," Phalon said.
This year is expected to be worse than last year's mild winter, said Joe Bastardi, chief long-range forecaster for AccuWeather. Bastardi said a "more normal winter" is expected but that New Jersey towns are going to have make sure they are prepared because this year is likely to be colder and stormier than the recent past.
Even if a municipality budgets for a certain amount of salt, there is always the chance more will be needed midseason. The extra cash usually comes at the expense of something else.
"Either you transfer money from another line item into that account or you declare emergency," said Stafford Township administrator Paul Shives.
There could be another option as well.
"Everybody is on their knees praying its going to be a mild winter; that we're not going to have a lot of ice and snow," Neely said.
Despite the price increase, Parsippany's director of the streets and road division, Greg Schneider, said having less of a supply is not an option. Last year, Parsippany spent nearly $70,000 last year on its winter supply and Schneider said they anticipate paying more this year.
"I cannot by any means affect safety. Salt is a safety issue in this town, and I will do what I have to do to keep these streets clean," said Schneider.
Some places avoid this year's price spike because they have long-term contracts in which prices will not fluctuate. Joseph Bellina, Freehold borough administrator, said the shortage has not affected his town -- the price this year remains $65 per ton -- because of its two-year contract with a supplier.
"It makes it easier to forecast your budget," Bellina said. "It's a good way to lock price in, so you're not held captive to the marketplace."
Although municipalities have the option to join with other towns in cooperative purchasing agreements to help drive down prices by buying in bulk, there is no such option to partner with the state. Supporters of such a pact say it would most likely yield lower prices for the state and municipalities -- with the only added cost being payments for transportation to the different locales.
Tom Bell, spokesman for the state Department of the Treasury, said a letter was sent to counties in May asking if they or any of their municipalities wished to enter into such a program, but it received no interest.
"We basically got no response from the counties, so we just went out and did our usual bid," Bell said, adding a similar offer will be made next year.
Bellina said Freehold borough has such an agreement with Freehold Township, Marlboro and Manalapan, which he said has kept prices low.