Council President: Why The Sewer System Sale Is Good For Gloucester Township

The following letter to the editor comes from Gloucester Township Council President Orlando Mercado. To submit a letter to the editor for Gloucester Township Patch, email josh.bakan@patch.com.

In November, Gloucester Township will vote on a referendum to approve the sale of its sewer system to New Jersey American Water. The sale will bring millions of dollars into our community and long-term fiscal benefits—a huge win for residents. It is the best option for Gloucester Township and that is why I am voting yes and asking you to join me.

The community will benefit in multiple ways. The township has pledged to use the purchase price of $143 million to pay off all municipal debt and use funds to reduce local property taxes and keep them frozen for five years. In addition, New Jersey American Water will invest $90 million to support infrastructure improvements to the 24-square-mile sewer system—a major concession as the aging system needs ongoing investment. Proceeds from the sale will help Gloucester expand recreation facilities with $10 to $15 million dollars dedicated to this effort. Beyond that, funds will be used for police and first responder equipment, support for cultural and senior citizen programming and not one current Township sewer employee will lose their job!

Community concern about the sale has focused on whether rates will rise precipitously after holding steady for the last few years. In fact, residents will enjoy greater transparency and price stability.

Post-sale, Gloucester Township residents will see their sewer bill stay the same for the first two years, then go up in modest increments for the following three. At the completion of the five years, sewer bills will have only increased by $1.38 a month per household, which is likely less than the rate hikes we’d see if the Township maintained control of the system. But what the community gets in return—no longer carrying the expense of maintaining an aging system, plus money flowing into the community—outweighs the small bill increase.

New Jersey American Water is far from an unknown entity to Gloucester Township. Based in Camden, the company has long been a water provider in parts of the township and has proven itself a good citizen in the community. This won’t change with the sewer system sale. Eligible residents will have access to the company’s payment assistance programs, which include emergency grants, discounts on monthly sewer charges, budget billing and more. The Township’s 65+ discount program that’s currently in place for enrolled residents will remain unchanged and Gloucester Township sewer employees will have the choice to stay with the Township or transition to a role with New Jersey American Water.

The sewer system likely isn’t top of mind for most Gloucester Township residents. It’s one of the “out-of-sight” services that we take for granted, but its ability to function efficiently and reliably is critical to the long-term welfare of our community. Keeping up with sewer system repairs and upgrades is expensive. Without the sale, the township will have to shoulder these costs, incurring more debt—and rates will rise as a result. This sale gives us a chance to get on strong fiscal footing.

This referendum marks a clear turning point for the township. Let’s not let this opportunity slip by—vote “Yes” for Gloucester’s future.