Yard signs across Hopewell Borough tell the story of a community divided. Some urge residents to approve the pending sale of the municipal water system to New Jersey American Water, while others call on voters to reject the deal and keep the system public.
On Sunday, Oct. 5, a group of residents will make their case for the latter. The Hopewell Borough Public Water Alliance (HBPWA) will host a public meeting from 4 to 6 p.m. at First Calvary Baptist Church, 3 East Broad St. The session will outline what the group calls a “feasible alternative” to privatization. More information is available at savehopewellwater.com.
Borough plan presented Sept. 11
At a Sept. 11 public meeting, borough officials laid out the financial stakes of the water system decision. The borough with the help of consultants projected that keeping the system public would require more than $11 million in upgrades over the next decade for PFAS remediation, well improvements, and other capital needs.
Under the proposed sale, New Jersey American Water would pay the borough $6.4 million upfront and commit to an additional $7 million in capital investments within five years. Borough leaders said the proceeds could retire municipal debt, fund projects without new taxes, and stabilize finances.
The borough has provided resources, data and slides from all of the meetings on their website.
Mayor Ryan Kennedy has argued the deal represents a rare windfall for a small town. “It takes all of our debt for everything we’ve ever done as a town and eliminates it,” he said, noting that the savings from debt elimination and lower operating costs could benefit the average household by $15,000 to $18,000 over the next decade.
Officials also said the sale would resolve regulatory challenges tied to contaminants like PFAS. Kennedy noted that Hopewell’s wells technically comply with current standards but remain close to thresholds expected to tighten under federal rules. New Jersey American Water, he said, already treats its supply to stricter levels.
Ratepayer concerns
The borough and New Jersey American Water have promoted the sale with the promise of an average 36 percent reduction in water bills. But J. David Waldman and the HBPWA say that figure does not reflect the full picture. According to borough data, roughly 20 to 25 percent of ratepayers – particularly low-volume water users – could see increases.
A household using 2,000 gallons per quarter would see its bill rise from about $59 to $92, a 55 percent increase, Waldman said. Customers closer to the borough’s 12,000-gallon average would save money, while higher users could see reductions of up to 30 percent. Residents can use a rate calculator, provided by NJAW to get an estimate of their rates.
Kennedy acknowledged that some low-use households could face modest increases but said the borough has tools to offset those impacts. Adjusting sewer rates or tapping financial assistance programs offered by New Jersey American Water could ensure no one pays more, he said.
Grassroots pushback
The HBPWA was formed in March, with members arguing the borough moved too quickly to embrace privatization under a state fast-track process. Through that process, residents petitioned that the decision should made by the voters and now the question will now appear on the Nov. 4 ballot.
Waldman said the group’s proposal includes creating a Municipal Utilities Authority run by water professionals and a nonprofit trust to raise philanthropic support. The trust, he said, could receive contributions from residents, businesses, and foundations to offset costs and subsidize local businesses struggling with bills. “This isn’t about being anti-privatization,” Waldman said. “It’s about making sure residents have the facts and a real choice.”
The group also questions borough cost estimates. They point to a 2024 Phoenix Engineering report that estimated about $6 million in needed capital projects, significantly less than the $11 million figure cited by officials. Subtracting a $2.34 million federal grant for well remediation, the alliance estimates closer to $3.6 million in upgrades would be required.
What to expect Sunday
The Oct. 5 meeting will feature former New Jersey Sierra Club director Jeff Tittel, utility association head Peggy Gallos, from the Association of Environmental Authorities, and Waldman is hoping there will be a video message from Gloucester Township residents who successfully opposed a privatization effort in their community.
Kennedy said he plans to attend and “I hope they have some idea or plan. I want that because I’d like to try to consider it,” he said.
The mayor defended the council’s support for the sale as the culmination of two years of research and public discussion. “Waiting another year has a cost,” Kennedy said, pointing to debt service and water purchase expenses that could exceed $1 million annually.
Organizers of Sunday’s meeting say they are not pushing residents to simply vote “no” but rather seeking to clarify options and spark a community conversation. “Our mission is educational,” Waldman said. “We just want people to have clear information before they decide the future of Hopewell’s water — because once the system is sold, there’s no going back.”
