As residents of Gloucester Township prepare to head to the polls on Election Day, a contentious referendum is dominating the local landscape: the proposed $143-million sale of the township’s sewage system to New Jersey American Water.
The high-stakes decision has ignited a flurry of township lawn signs, campaign ads and a grassroots effort against the sale. Residents Ira Eckstein, Keith Gibbons and Denise Coyne – among others – have mobilized to distribute signs that read, “Don’t Sell the Sewer Utility.”
Their initiative includes a website, a local podcast and an active Facebook group, all aimed at rallying opposition. Even some local Girl Scouts have joined the opposition.
In response, New Jersey American Water has invested heavily in its own campaign, reportedly spending more than $830,000 on mailers, paid canvassing and various forms of advertising to promote the sale. The controversy has heightened tensions in the community, with those against the sale expressing frustration over rising sewage payment costs and what they say is a perceived lack of transparency from township officials, claims those officials refute.
The Gloucester Township Municipal Utility Authority voted unanimously in early 2023 to dissolve itself, leading to the referendum on privatization. Tom Cardis, the township’s business administrator, explained the decision was made to streamline operations and reduce the costs of running the sewer utility. Opponents of the sale say local leaders assued them there were no plans to go forward.
“That was not something we had discussed at that time,” Cardis said, insisting that the notion of a sale emerged only after the township observed other municipalities privatizing their sewage utilities. New Jersey American Water emerged as the highest bidder for the sale, and promised to invest an additional $90 million in infrastructure improvements over the next decade.
Proponents of the sale argue that the $143-million price would not only eliminate the township’s approximately $65 million in debt, but also allow for significant tax reductions and increased funding for essential services such as law enforcement and community programs.
Cardis also highlighted other benefits, including $10 to $15 million earmarked for recreational projects and enhanced support for seniors and the local arts.
The sewage utility – which operates 51 pumping stations and maintains more than 300 miles of pipeline – handles about 8.7 million gallons of sewage daily. Cardis noted that privatizing the utility could cut operational costs and eliminate unnecessary expenses related to board salaries and legal fees.
If the sale goes through, residents’ sewage rates would be frozen for two years, followed by a modest increase of 9% over three years. That translates to about $16.56 a month. The township has reassured residents that any future rate adjustments would undergo scrutiny by New Jersey’s Board of Public Utilities.
Yet skepticism persists. Resident Denise Coyne began her own awareness campaign against the sale last spring by holding signs outside the municipal building. She and other opponents said they fear privatization could lead to substantial tax-rate hikes.
“Residents deserve to have a say in how this money is spent, if the sale goes through,” Coyne asserted, noting her belief that local government has not adequately incorporated public input into the decision-making process.
Cardis countered that claim, arguing that the township has been transparent throughout the process.
“The public had a chance to comment,” he pointed out, “and we’ve shared all pertinent information,” what he described as council meetings and related information that have been accessible to residents.
The proposed sale could significantly impact the township’s financial future and the services provided to its residents. As Coyne put it, “We have to save ourselves. It’s that simple.”
