Editor’s Note: This story was updated to include a release from New Jersey American Water and Hopewell Borough encouraging residents to vote yes for the sale
A standing-room-only crowd filled Borough Hall on Sept. 11, with more than 50 others tuning in online, as Hopewell Borough residents heard hours of presentations and posed pointed questions about the proposed sale of the municipal water system to New Jersey American Water (NJAW).
The nearly four-hour meeting combined formal presentations by Borough officials, financial advisors, and NJAW staff with an extended Q&A session, underscoring the high stakes of a referendum that will appear on the Nov. 4 general election ballot.
How the Deal Came Together
Mayor Ryan Kennedy described the process as years in the making, involving state oversight, financial analysis, and competitive bidding. The proposed contract — approved by the state Board of Public Utilities and the Department of Community Affairs — sets a purchase price of $6.4 million and requires NJAW to invest another $7 million in infrastructure upgrades within five years.
Kennedy noted that the Borough’s “defeasance plan” would dedicate the sale proceeds to paying off municipal debt, a move that could reshape local finances. “To put that in perspective, our entire municipal budget is about $4.5 million, and the total raised from property taxes is about $2.5 million,” Kennedy said.
The November vote, he stressed, is decisive. “This is one of the most consequential decisions our town will face. Ultimately, it’s up to the community to decide.”
NJ American Water’s Commitments
Lee Mueller, NJAW’s Director of Business Development, led the company’s presentation, backed by a team of operations, rates, and government affairs staff. She said the utility would move quickly to address the Borough’s pressing challenges:
- PFAS compliance: Take well #4 offline immediately and supply all Borough needs through NJAW’s existing interconnect, ensuring water meets state standards for so-called “forever chemicals.”
- Lead line replacement: Begin replacing both public and private lead and galvanized service lines “on day one,” with the cost being a small fee as part of everyone’s bills.
- Infrastructure upgrades: Launch water main replacement projects and evaluate the Borough’s aging reservoir, built in 1914, to determine whether rehabilitation or full replacement is needed.
- Rates: Place Borough residents on NJAW’s A1 rate schedule. For an average household using 4,000 gallons per month, that would mean an estimated 36% decrease in bills. Large users could see 40–50% reductions because NJAW does not use the Borough’s tiered rate system.
Mueller emphasized that rates are set by the state Board of Public Utilities, not the company, and that NJAW’s size allows it to spread costs across 750,000 customers rather than 800 households in Hopewell Borough.
NJAW President Mark McDonough, in a statement following the meeting, said:
“Our team is grateful for the opportunity to work closely with Hopewell Borough leaders and residents as they consider this important decision. This referendum represents a chance to secure long-term savings for families and businesses, eliminate debt, and invest in critical water infrastructure improvements. By voting YES, residents can secure safer, more reliable service and a sustainable water system that will benefit the Borough for generations to come.”
The company also launched a dedicated website with resources and a rate calculator to help residents estimate their individual costs under NJAW ownership.
The Case for Keeping Local Control
Borough Council members and advisors laid out the alternative: keeping the water system and executing a multi-million-dollar capital plan. Councilman David Mackie explained that the Borough has already secured a $2.34 million federal grant to install PFAS and arsenic treatment systems at wells #4 and #6. Bringing well #6 back online could restore full local supply, but at significant ongoing cost.
New treatment systems would add expenses for operations, testing, and energy. The Borough also faces $1.7 million to repair or replace its leaking reservoir and $4.8 million for Broad Street main replacements, along with lead service line compliance by 2031.
“There’s always a way to handle it, but there’s always a price,” Mackie said. “With such a small economy of scale, it’s becoming more expensive and challenging.”
Councilwoman Sheri Hook said the Council initially resisted the idea of giving up local control but ultimately concluded the NJAW offer was the most sustainable. “Unfortunately, we can’t keep things the way they are. Either option has a big impact on our community, so it’s critical to understand the real benefits and costs,” she said.
Community Questions
Residents pressed on issues ranging from cybersecurity to flood resiliency. Some expressed concern about entrusting personal information to a large utility that faced a breach in 2024. NJAW officials acknowledged the risk but noted that small systems are also frequent hacking targets.
Others questioned whether reliance on NJAW’s treatment plants, located near flood-prone rivers, could leave the Borough vulnerable. Company representatives pointed to upgraded flood walls and backup facilities. Still others raised concerns about whether one water main connection into the Borough leaves it exposed to outages; NJAW pledged to study options for a redundant feed if the sale goes through.
Questions also touched on affordability for businesses. One local restaurant owner said the Borough’s projections without a sale looked like a “bloodbath” for water costs.
What’s Next
The mayor and council want everyone in the Borough to be educated on the issue and ask questions. Kennedy pointed to the numerous opportunities from office hours to council meetings to ask questions before Election Day. He also pointed to the Borough’s website to find all the information, presentations, and the contract with NJAW. As additional materials are available they are added to the Borough’s website https://www.hopewellboro-nj.us/water/
Hopewell Borough voters will decide the issue on Tuesday, Nov. 4. Early in-person voting runs from Oct. 25 to Nov. 2 at the Pennington Firehouse. The deadline to register to vote is Oct. 14. If you have registered for mail-in voting, ballots are mailed around Sept. 20.
Kennedy urged residents to take part: “Whatever your opinion is, whichever way you want to go, this is a major decision for Hopewell. Please make sure you’re registered and make sure you vote.”
Vote Yes From Officials
New Jersey American Water and Hopewell Borough officials issued a release over the weekend encouraging residents to vote yes. The release is below:
Following the town hall meeting on September 11th, community leaders in Hopewell Borough have endorsed a YES vote on the water referendum.
Mayor Ryan Kennedy, Council President David Mackie, Councilwoman Sheri Hook, Planning Board Chair Peter Macholdt, Economic Development Committee Member Ethan Unick, and former Council President Sky Morehouse are all encouraging residents to vote YES in November.
“After years of study, I believe this is the right choice for our Borough’s future,” said Mayor Ryan Kennedy. He added, “We have the chance to lower the average resident’s water bill by 36% right away, eliminate all of the Borough’s debt providing nearly $1 million each year for tax relief and other community priorities, and secure a partner with the resources to modernize our aging water system, providing a real alternative to the skyrocketing costs and new borrowing that will otherwise continue to burden our residents and businesses. That’s a win for our families, our restaurants, and our community.”
If approved by voters, the sale of the Borough-owned water system to New Jersey American Water would bring $13.4 million in total investment, including $6.4 million in sale proceeds and $7 million in infrastructure repairs in the first five years.
Key benefits of the sale include:
- Approximate 36% decrease in household water bills for the average household, saving roughly $423 per year.
- Full replacement of all lead and galvanized steel service lines at no direct cost to homeowners: a savings of thousands of dollars per household.
- Elimination of water utility debt and all municipal debt, helping stabilize property taxes.
- A clear plan to address PFAS and arsenic contamination and modernize aging infrastructure.
- Award winning customer service with 24/7 emergency response and bill paying assistance for customers in need.
Residents are encouraged to learn more about the proposal and use an interactive rate calculator to estimate savings by visiting VoteYesHopewellWater.com.
