Hopewell Borough voters have decided to sell their community-owned water system to New Jersey American Water, approving the ballot question with just over 58 percent support in Tuesday’s election.
The outcome caps two years of public debate and marks the start of a new chapter for the Borough as it transitions its water operations to the state’s largest water company.
Community Decision and Next Steps
Mayor Ryan Kennedy said the result reflects the depth of public engagement that defined the process.
“I want to thank Borough Council, our town’s professionals and especially Council President David Mackie and Councilwoman Sheri Hook for the two years of work that went into studying, planning, and communicating with our community on the option our voters have now selected to provide water and affordable infrastructure improvements to the Borough going forward,” Kennedy said. “The level of engagement and consideration our community brought to this important issue, and the unprecedented voter turnout, make me proud of the work everyone has done — whether it was for or against the sale — and proud to be part of our Borough. I look forward to working with our entire community as we determine our priorities and the opportunities that will come from retiring our municipal debt.”
Kennedy also congratulated Councilman-elect Paul Buda and Councilwoman Krista Weaver on their elections to the Borough Council.
Transition Timeline and Process
With the referendum approved, Borough officials and New Jersey American Water will begin the formal process of finalizing the purchase agreement. Councilman David Mackie, Chair of the Water Supply Planning Committee, said certification of the election results will be the first step.
“Once certified, the Borough can move ahead with executing the formal purchase contract,” Mackie said. “It’s a fairly long process — there are logistics around system operations, transferring customer accounts, and property access that all take time.”
According to Lee Mueller, NJAW’s Director of Business Development, residents will not notice immediate changes.
“We will continue to serve them in the current function that we do until closing takes place,” Mueller said. “Everything remains as is until that closing date.”
For now, the Borough will maintain the municipal system and the interconnection with NJAW which supplies a percentage of the Borough’s water.
Mueller noted that the Borough will need to adopt a Municipal Consent Ordinance granting NJAW the right to serve the community, which must then be approved by the New Jersey Board of Public Utilities (BPU) — a process that typically takes six to nine months.
Background on the Sale and Customer Impact
The sale of the Hopewell water system to New Jersey American Water includes all of the Borough’s physical water assets — its wells, treatment systems, mains, hydrants, valves, meters, and the water tank site in Hopewell Township — but does not include the sewer utility or any underlying water resources, which remain publicly owned under state law. The purchase price of $6.4 million will allow the Borough to retire its existing water and general municipal debt, freeing roughly $1 million annually in debt-service costs for other community priorities.
As part of the agreement, NJAW has pledged to invest approximately $7 million in system improvements within the first five years after closing, including modernization of aging infrastructure and replacement of all lead service lines by 2031. These capital upgrades will be reviewed and approved by the New Jersey Board of Public Utilities (BPU) before construction begins.
During the transition, customers will continue to receive bills from the Borough as normal. Once the transfer is finalized, NJAW will send a welcome packet to every customer with information on how to set up accounts, pay bills, and access bill-assistance programs and low-income rate relief options.
“Customers will receive clear guidance about their new account, rate structure, and available assistance programs,” said Lee Mueller, Director of Business Development for NJAW. “We want this to be a seamless transition, and part of that is making sure residents have all the tools and information they need.”
Rates will remain governed by the BPU and cannot be adjusted outside of its public review process. According to the Borough’s financial analysis, most typical residential customers using about 12,000 gallons per quarter are expected to see a decrease in their water bills after the transition, while lower-volume users could see modest increases tied to the fixed service charge.
Integration and Communication
NJAW’s General Counsel Stephen Bishop said the company will coordinate closely with the Borough to ensure all easements and operational records are up to date before the transfer.
“We’ll work with them through the transition so that when we take over, all of that is lined up,” Bishop said.
Mackie said Borough meetings will continue to include updates as milestones are reached.
“Whatever level of transparency we’ve had from the beginning will continue right through the end,” he said.
Looking Ahead
NJAW President Mark McDonough thanked residents and local officials for their trust.
“I want to thank the residents, Mayor Kennedy, Council President Mackie, Councilwoman Hook, the rest of the Council members, and the many community leaders who supported this referendum, for entrusting us with the water system,” McDonough said. “We will be working with the Borough to begin integration efforts and will be ready to get to work the day we transfer ownership. We look forward to fulfilling our promises and providing safe, affordable, and reliable service to all of Hopewell Borough.”
The Borough and NJAW expect the transfer of ownership to be completed sometime in 2026, following BPU approval and final closing. Until then, Hopewell’s water service will remain unchanged.
