Somerville voters to decide on selling borough sewer system. What would it cost residents?
SOMERVILLE – Borough voters will decide in November whether to sell the town's sewer system for $7 million to New Jersey American Water.
The Borough Council on Monday unanimously introduced an ordinance to place the referendum on the Nov. 8 general election ballot.
A public hearing on the ordinance is scheduled for the Aug. 1 council meeting. New Jersey municipalities have an Aug. 19 deadline to place public questions on the ballot.
Though there was no discussion of the sale on Monday, Mayor Dennis Sullivan said more details will be given at the Aug. 1 meeting.
Somerville solicited bids for the sewer system in May and received offers from New Jersey American Water and Aqua New Jersey.
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Based on a review of the bids, New Jersey American Water was determined as the "highest responsible bid," according to the ordinanceBy a 63%-to-37% margin, Bound Brook voters in November 2021 approved the $5 million sale of its sewer system to New Jersey American Water.
Under the terms of the agreement with New Jersey American Water, Somerville property owners would see no sewer rate increases in 2023 and 2024, 3% increases in 2025 and 2026, and 4% in 2027 and 2028. All rate hikes after that would have to be approved by the state Board of Public Utilities.
Sullivan previously said the borough has been "very fortunate over the years" that the century-old system has not needed major repairs and the borough has been "very aggressive" in performing necessary maintenance.
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But the system is old. One pipe on Davenport Street had "1912" stamped on it, the mayor said.
Costs for repairs will increase as the system continues to age, Sullivan said, putting financial pressure on the borough which then must pass on the costs to residents.
The sewer system may be the most important service, other than police, that the borough performs, the mayor said, adding public health and safety are the most important responsibilities of government.
One of the advantages of selling the system, Sullivan explained, is that a private entity will have the financial and physical resources to upgrade the system and make repairs.
Maintaining the system would no longer be a borough responsibility, the mayor said.
Unlike most referendums, this one involves getting money, not spending money, Sullivan said.
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 today.
This article originally appeared on MyCentralJersey.com: Somerville voters to decide on NJ American Water sewer system sale
