Timeline breakdown
All dates are 2024 unless stated otherwise
- In January 2023 Gloucester Township walked on a resolution to dissolve the MUA.
- On May 10th, 2023, the local finance board agreed to allow the dissolution of the MUA.
- Residents question this move and ask how much it’s going to save, if this was just a money grab and if the intention was to sell the MUA to American Water.
- GT administration and legal council testified that there was no intention to sell.
- With a July 2nd due date, the township was able to put out a request for bids to sell the Sewer Utility.
- The claim was that the township just wanted to know the value of the asset that they controlled.
- The resolution stated “Council has a desire to sell”
- 2 Bids were received to purchase the sewer.
- Aqua $52,000,000
- NJ American Water $143,000,000
- On July 8th the 2 bids were read, and American Water and Council chose to move forward with American Water as the winning bidder. This was the first reading of the ordinance. If passed there would be a 2nd reading to then vote to put it on the November 5th
- On August 8th a second reading and public and public hearing took place in a special meeting. If passed the following would happen. The decision to sell the sewer would be put on the November 5th
- If voters choose to sell the MUA, the following will take place.
- American Water would pay Gloucester Township back up to $200,000 for legal fees involving the sale.
- American Water would spend $90,000,000 in the first 10 years to make capital improvements to our system. $55,000,000 of that will take place in the first 7 years even though the township’s engineering report (see below) said our sewer system has been well maintained and only needed a few repairs. Our own capital plan only stated it required about $20M, not the $90M. Where is the additional $70M coming from?
- Rates for the first 2 years will remain the same but move to a monthly billing system. (Roughly $15 a month.)
- The next 3 years rates can only be increased by 9% total over those 3 years. So, by year 5 our rates in theory would be $16.71 per month. ($200 yearly.) Increases for base rates may not include other charges such as surcharges for system upgrades.
- Rate increases after year 5 will have to be approved by the NJ Board of Public Utilities(BPU). (Except in the case where the “Resiliency and Environmental System Investment Charge Program” comes into play. NJ Bill 4971). The BPU recently approved a rate increase of 50.34% for Haddonfield and a45.08% for Mount Ephraim. (See Application link below)
- NJ American Water will hire up to 23 Sewer Utility workers from GT for at least 6 months provided they pass their screening process. (Background checks and drug testing are listed) They will receive equal or better pay and benefits that line up with American Water’s standard plans. (Not the same benefits they have now)
- Seniors enrolled in the current discount plan will still receive the same discount they had with the GTMUA.
- Senior discounts will NOT be offered to new seniors not grandfathered into the GT discount at the time of the sale.
- Cleanouts that were performed by GTMUA in the past will now be performed by Public Works. (Orlando Mercado guarantees it.). However, we do not know if NJAW would even allow another entity to work on their system.
In late July the GT Observer sat down with Certified Waste Water Engineer Dennis Palmer to discuss what the sale of the GT Sewer Utility would mean for Gloucester Township residents.
On August 8th Joe and Keith from GT Observer broke down the August 8th meeting that lead to the sale of the Sewer Utility being put on the ballot.
This is the full council meeting regarding the sewer that was summarized above.
