Gloucester Township voters overwhelmingly rejected the proposed sale of the township’s sewer system to New Jersey American Water, with preliminary results showing the measure failed by a margin of 81% to 19%. The sale would have transferred control to the state arm of the nation’s largest investor-owned water company for $143 million.
The proposal, supported by township officials in July, faced heavy opposition from a grassroots coalition of residents, union workers, and community groups. New Jersey American Water invested more than $1 million in the campaign in support of the proposed sale, but community members united to counter the corporate bid.
Here’s WHYY with additional details:
Gloucester Township officials say the sale would pay off a $65 million debt, and help reduce property taxes.
Residents who oppose the sale accuse town officials of passing their financial woes onto the backs of constituents, and say they’re worried privatization will raise their sewer bills.
“The residents have begged them over the years not to overborrow, not to overspend. And … they ignored us,” said resident Denise Coyne, who is part of a grassroots campaign against the sale. “Now, we’re in this huge hole, and they just want to push it off onto us.”
This was not the first proposed purchase for New Jersey American Water, which has acquired seven new water or sewer systems in four states.
As WHYY reports, “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.”
“While we are disappointed with the outcome of the ballot measure in Gloucester Township, I want to thank Council President Mercado and the other Council members, community leaders and residents who took the time to make their voices heard,” said Mark McDonough, president of New Jersey American Water Co. “As the longtime water provider to about one-quarter of the homes and business in Gloucester Township, we will continue to deliver exceptional service. And we remain committed to supporting local governments who explore a partnership with New Jersey American Water to solve the challenges associated with owning and operating a water or sewer utility.”
