Gloucester Township voters to decide whether to sell sewer system

Rates would gradually increase by about $16 a year after five years. Any other rate increase would require approval from New Jersey’s Board of Public Utilities. New Jersey American Water would offer senior discounts, and assist customers struggling to pay their bills, McDonough said.

Still, some residents say they’re skeptical, and are encouraging neighbors to vote against the sale by handing out flyers outside the local ShopRite and assembling yard signs throughout town. Meanwhile, American Water has spent hundreds of thousands of dollars on canvassing efforts, and advertisements.

Resident Dena Hendry said she doesn’t believe American Water won’t pass sale costs down to Gloucester Township residents.

“It’s money that I’d rather spend making memories, and doing things with my family. It’s an unnecessary cost,” she said. “And, everything is going up. The price of groceries is going up.”

Those who oppose the sale argue the town’s sewer system doesn’t need saving. Unlike other small towns that sold their water systems because of failures or contaminated drinking water, Gloucester Township’s sewer system is in decent shape, according to a 2023 engineering report.

Residents voice distrust in local leaders

Residents have become suspicious about the motivations behind the sale, as their mayor, David Mayer, is the director of government affairs for New Jersey American Water. Mayer has recused himself from the acquisition, however, and McDonough said the mayor has never been involved in any conversation about privatizing the town’s sewer system.

Residents also accuse township officials of being fiscally irresponsible, and say they don’t trust them to spend the proceeds wisely.

Gloucester Township’s business administrator, Tom Cardis, said the town’s debt was accrued because of necessary expenditures for road repairs, law enforcement and other infrastructure projects.

Cardis said not only would the sale pay off the debt, but it would also help the town reduce property taxes, and pay for improved recreational opportunities for residents.

“The proceeds of the sale are going towards helping the community at large,” he said. “It’s reducing taxes, and stabilizing taxes.”

If the referendum fails, the city may raise the sewer bills, Cardis said. The town’s utilities authority, which was dissolved last year, also had not raised rates since 2002. Though the sewer system isn’t currently failing, its future maintenance would require a significant investment, Cardis said.

Residents campaigning against the sale say they understand rates may rise if the referendum fails, but believe residents will have greater say in how the sewer system is operated.

“If our bills do [increase] there’s not a darn thing anybody can do about it,” Denise Coyne said about privatization. “It’s not like we could go purchase our sewer back. It’s gone forever.”