By Joel Keller
THE ERICKSON TRIBUNE

While many national organizations and institutions are currently tackling the nation’s financial issues, one local community, Cedar Crest, in Pompton Plains, has been using a successful model for utility bills and services for eight years.

For people who live at the Erickson retirement community, their home heating costs are part of an overall service package they pay once a month; the cost of the package does not change throughout the entire year, no matter how high prices may get elsewhere.

Consistent, all-inclusive package
According to Director of Marketing Raymond Guarino, the cost of the monthly service package for the upcoming year is set in late November; he approximates that heating costs make up about 5% of the monthly package,  which also pays for landscaping, 24-hour-a-day maintenance, one meal a day in any of the community’s restaurants, and all utilities except telephone.

Buying in bulk
One advantage of Cedar Crest being an Erickson community is that the Baltimore-based company, whose campuses use all electric heating and cooling systems, purchases utilities in bulk. Erickson is able to negotiate utilities prices on residents’ behalves due to the volume of people living at its communities.

Additionally, because Cedar Crest buys its utilities in one lump sum instead of separately for each home as you would in a house, the community divides the amounts up among each apartment home to create the monthly service package, according to Joe Harsel, director of corporate and social responsibility.

In turn, Cedar Crest has more control and can soften unexpected rate hikes in one area or another. “A solid, predictable amount goes to the local community and keeps the monthly service package at a reasonable cost for the middle-income retiree,” Harsel says.