On Tuesday, July 30, Hopewell Borough held a community discussion to further explore the future of the Borough’s aging water system and address rising water rates.
At the April 2024 Council meeting, Hopewell Borough accepted a report from Phoenix Advisors, a consulting firm retained by the Borough to evaluate the options for the future of the Borough’s drinking water system. At that meeting, Council member David Mackie presented slides that track water usage and rates over time. The data showed how the Borough reached the point at which rates must be raised, as well as the effect such raises will have on consumers.
The raises are significant. Suppose an average household pays $170 per quarter for water in the Borough. Under the proposed changes, that household would pay $248 per quarter, an increase of $78, or 46%. A household that pays $498 per quarter would see their rates balloon to $755, a more than 50% increase.
See HB Council contemplates selling the water system.
In May, the Borough held a Town Hall open to the public and offered FAQs (frequently asked questions) about the process on the Borough website.
This July meeting was an opportunity for the water supply committee to provide an update on the process and host a public Q&A session. “Tonight is meant to be one of the more informal interactions. No action will be taken tonight,” said Hopewell Borough mayor, Ryan Kennedy. “We have a quick update, as one of several ongoing opportunities to receive feedback about our water system.”
Council member David Mackie offered a lengthy presentation highlighting the challenges in keeping the utility, namely aging infrastructure and costs associated with necessary repairs.
“If we’re not going to sell it, we need to have a realistic idea of what we need to [repair it],” said Mackie.
Aging Infrastructure
Some water lines are over 100 years old. When systematic leaking was at its worst, a stunning 45%+ of unaccounted/unmetered water was missing from the water system due to reservoir and infrastructure failures. To make the necessary repairs, the Borough estimates a required 8.7 million dollar 10-year capital plan.
Water Cost Concerns
Concerning cost, Mackie explained that a “medium user” consumes 10K gallons per household so a typical family pays approximately $1000 per year. He compared this rate to neighboring municipalities, which are less than Hopewell Borough.
During the Q+A, residents spoke about the oppressive cost of water and its effect on local businesses, namely Aunt Chubby’s and the laundromat, which are the highest water users in the community due to the nature of their businesses.
“It’s hard to look at a 10-year projection when we’re in a crisis mode,” said Heidi Wilenius, referring to bloated water costs, “If we can deal with the current rate increase it will put us in a better position to look to the future with 10 years in mind.”
Mackie responded that there are ways to explore a solution.
Timing
Kennedy urged that “from a process standpoint, we would be putting out a for sale sign. My commitment is that we explore it. I couldn’t tell you what the right decision is until after we have offers come in and see whether there is anything worth exploring.”
Some considerations would include “not just in cash” but an assessment of Borough water rates now and in the future, and ensuring that they are area-appropriate as compared to neighboring municipalities. “It’s scary what our rates would be,” said Kennedy.
As for a timeline, Kennedy explained that “there are months of work ahead” and that under the WIPA process, the Borough would first put together an RFQ to vet who is qualified to be in the running for water system purchase. “The hope is that there will be lots of [interest].” Then the RFP is when the Council has to put out the “for sale” sign with conditions “not just how much money will you give us, but also restoring to affordable rates and how long can you keep up there?” Resolution would not happen without many months to a year, Kennedy estimated.
Opposition to the Sale and Public Reaction
Mackie and Kennedy fielded questions during the Q&A on the intricacies of a potential sale as well as about water rate structures.
Charlie Kratovil the Central Jersey organizer at Food & Water Watch spoke on behalf of the organization and some residents of the Borough. As an advocate for non-privatization, Kratovil expressed concerns about the potential loss of local control. He cautioned that any negotiations and control will be short-lived.
With the aid of Food & Water Watch, Kratovil explained that residents are circulating a formal petition to ensure that the Borough does not sell any of its water or wastewater assets without a public referendum. The petition deadline to request the issue be on the ballot – potentially for the fall election – is August 5.
Rachel Dawn Davis, a public policy and justice organizer from Waterspirit, a spiritual ecology nonprofit based in Monmouth County also spoke: “The prospect of privatizing our water supply is more than a policy issue, it is a threat to the sacred relationship. When water is treated as a commodity, it severs a sacred relationship transforming water into an enterprise.” The group lobbied the Borough to explore creative solutions.
Some residents thanked Councilmember Mackie for his extensive work maintaining and monitoring the Borough’s water system.
For more info, please see more of MercerMe’s coverage on the issue:
- Hopewell Borough Council Addresses Water System and Parking Dispute in Extended Session
- Hopewell Borough Council Discusses Water System Sale and Major Redevelopment Plans
- Hopewell Borough Council Considers Selling Water System
- HB Council Contemplates Selling Water System
The recording of this meeting can be found on the Borough website and Youtube.
