Manville voters to decide whether to sell sewer system for $6.5 million
Manville voters will decide in November whether to sell the borough’s sewer system for $6.5 million to New Jersey American Water Company.
The Borough Council is expected to adopt an ordinance next month to place the question on the Nov. 7 ballot.
Voters in Somerville and Bound Brook have already voted to sell their sewer systems to New Jersey American Water.
Under the terms of the proposed sale, New Jersey American Water has agreed to make $10 million in capital improvements to Manville's sewer system over the next decade.
New Jersey American Water has also agreed to no sewer rate increase in Manville for 2024, a 2% increase in 2025, 3% each in 2026, 2027 and 2028 and 4% each in 2029 and 2030. The rates require final approval from the state Board of Public Utilities.
The proceeds of the sale will be used to retire Manville's $6.5 million municipal debt, eliminating $650,000 in annual debt service payments from future municipal budgets.
The Borough Council introduced the ordinance for the referendum on July 24. A public hearing and final vote are scheduled for 7 p.m. Aug. 14.
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In 2022, Somerville voters gave the sale a 3-1 margin of approval while in Bound Brook, voters decided in 2021 by a 63% approve the sale.
In Somerville, the sale was for $7 million with New Jersey American Water agreeing to invest $9.5 million in the system.
In Bound Brook, the sale was for $5 million with the company investing $11 million into the system.
Advocates of the sale in both towns said the sale would enable necessary capital improvements to the aging sewer infrastructure without going into debt.
If Manville voters reject the sale, the borough will begin the process to immediately raise rates to fund the necessary capital improvements and maintenance.
New Jersey American Water, a subsidiary of American Water, is the largest investor-owned water utility in the state, providing water and wastewater services to approximately 2.8 million people.
American Water provides drinking water and wastewater services to more than 14 million people in 14 states and on 18 military installations.
On Wednesday, the company, headquartered in Camden, reported a profit of $450 million for the first six months of 2023 on revenue of $2.03 billion.
Email: mdeak@mycentraljersey.com
Mike Deak is a reporter for mycentraljersey.com. To get unlimited access to his articles on Somerset and Hunterdon counties, please subscribe or activate your digital account.
This article originally appeared on MyCentralJersey.com: Manville NJ voters to decide whether to sell sewer system
