New Jersey city weighs $75-million sewer system sale amid fiscal pressure
(UI) - Officials in Paterson, New Jersey, are evaluating the potential sale of the city’s sewer system as part of a broader effort to address a significant budget gap and stabilize long-term finances.
City leaders estimate the sale could generate up to $75 million through a transaction with a private operator, though any proceeds are not expected in the near term. According to Paterson Press, the proposal is one of several measures under consideration as Paterson seeks increased state aid and explores additional revenue sources.
The city’s sewer system, which combines stormwater and wastewater flows, faces ongoing infrastructure challenges and has required continued investment in repairs and upgrades. During heavy rainfall events, excess flow can discharge untreated into the Passaic River, underscoring the need for long-term system improvements.
Officials said a potential sale could provide a one-time financial infusion while reducing future capital and operating costs. However, Paterson Press reported, the approach raises questions about long-term rate impacts, as similar transactions in other municipalities have led to eventual increases in user fees under private ownership.
The evaluation remains in its early stages and could take more than a year to complete, as the city weighs financial benefits against infrastructure needs and service considerations.
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