Salem and Manville voters approve selling water, sewer systems to New Jersey American Water

(UI) — Voters in Salem City and the Borough of Manville have decisively approved ballot referendums to transfer water and sewer operations ownership to New Jersey American Water.

Voters in Salem City approved the sale of the City’s water and sewer system with over 60% of the vote, which will add more than 2,300 water and 2,300 sewer customers to the company’s operations. Voters in Manville approved the sale of the Borough’s sewer system with more than 80% of the vote, which will add more than 3,700 sewer customers to the company’s operations. New Jersey American Water is the current water provider for Manville.

“I want to thank the residents, elected officials, and community leaders in both Salem City and the Borough of Manville for supporting their respective referendums and entrusting us with their water and sewer systems,” said Mark McDonough, president of New Jersey American Water. “Water and sewer is all we do, and we are deeply committed to making the necessary improvements to these systems to help ensure clean, safe, reliable and affordable service for all residents. We look forward to getting started and working hard to deliver upon the commitments we made.”

In Salem City, New Jersey American Water will invest $68 million, including an $18 million purchase price and over $50 million in infrastructure investments over the first 10 years of ownership. The system upgrades include a robust capital improvement plan, including critical system upgrades, implementation of PFNA treatment and repairing the City’s aging water and sanitary sewer infrastructure.

In Manville, New Jersey American Water will invest $16.5 million, including a $6.5 million purchase price and $10 million in infrastructure investments over the first 10 years of ownership. The system upgrades include addressing inflow and infiltration, flood mitigation efforts, and sewer main repairs and replacements. The $6.5 million sale proceeds will be used to pay off all municipal debt and stabilize property taxes.

Both sales include short- and long-term rate stability commitments.

This year’s voter referendum follows three other successful New Jersey American Water referendums across the state since 2019, including Somerville in 2022, Bound Brook in 2021, and Long Hill in 2019. Additionally, in June 2023, the company closed on its acquisition of the water and sewer systems of Egg Harbor City through the Water Infrastructure Protection Act, or WIPA, process.

New Jersey American Water anticipates completing both acquisitions in the second half of 2024, following approval from the New Jersey Board of Public Utilities.

 

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