The Hopewell Borough Council voted unanimously on March 20 to advance a draft contract to sell the borough’s municipal water system to New Jersey American Water, a step that could place the decision in the hands of voters this November.
The resolution allows the borough to submit the draft agreement to the New Jersey Board of Public Utilities (BPU) and the Division of Local Government Services in the state Department of Community Affairs for review. If both agencies approve the terms, the proposal will appear on the November general election ballot, where final authorization would require majority support from Hopewell Borough voters.
“This is still the beginning of a long process,” said Mayor Ryan Kennedy. “A lot of work got us to this point, and we look forward to the conversation ahead to decide what is right for the borough.”
The draft contract, now available to the public on the borough’s website, outlines the sale of the borough’s water system—including wells, well buildings, mains, fire hydrants, service connections, meters, and a reservoir property in Hopewell Township—for $6.4 million. The borough’s sewer system would remain under local control.
New Jersey American Water has agreed to several provisions if the sale is finalized, including:
- Immediate disconnection of Well #4 to meet state PFOS standards.
- Adoption of regional Rate Schedule A-1, aligning water rates with those in Princeton and Montgomery.
- At least $7 million in infrastructure investment during the first five years of ownership.
- Full replacement of all lead service lines by July 2031, with no direct cost to the borough or its customers.
- Refund of up to $150,000 to the borough to offset transaction-related costs.
Borough officials said the agreement ensures that borough’s well houses will continue to be maintained by NJAW, and if a well is later decommissioned, its facilities would be returned to the borough.
Hopewell Borough currently sources some of its water from New Jersey American Water, with the remainder coming from local wells. That number can vary by month, but can be as much as 40% from NJAW. Officials say the agreement would bring needed investment into the borough’s aging system, parts of which are more than a century old.
Council members emphasized that the public would have multiple opportunities to learn more and provide input ahead of the referendum. Public information sessions and fiscal and engineering presentations are planned for upcoming council meetings, and a detailed FAQ will be updated regularly online. NJAW representatives will also be available to answer residents’ questions.
The Borough has posted the full draft contract and an FAQ sheet on its website. Borough residents are encouraged to begin reviewing the materials. Questions can be directed to Borough Administrator Doug Walker.
But the proposed sale has sparked concern among residents who want to keep the system under public control.
“As residents, we understand that our water supply is an essential public good,” said J. David Waldman, speaking on behalf of the community group Hopewell Borough Public Water Alliance. “It’s an asset, once privatized, that can never be reclaimed.”
Waldman pointed to a petition signed by 230 residents last summer calling for a public referendum and asked the council to consider alternatives.
“We respectfully urge the council to work collaboratively with the community to actively pursue available grants and alternative funding sources to make our water system whole,” he said, citing a $2.35 million state grant already designated for upgrades and the success of nearby Rocky Hill in securing infrastructure funding.
Other residents raised questions about potential changes to billing frequency, the future of fluoridation in the water supply, and the scope of NJAW’s infrastructure plans. Borough officials clarified that rates would remain regulated by the BPU, billing would shift to monthly cycles, and investments would be distributed across NJAW’s statewide customer base.
“We want to share the document with our community and start the education process,” Council President David Mackie said. “People need to review and digest this on their own schedule and not just in meetings.”
Thursday’s public session followed a closed executive discussion on legal matters and drew an audience of roughly 50 people. The next Hopewell Borough Council meeting is scheduled for April 3.
