Dunellen Council Rejects $5.5 Million Bid for Wastewater System, Focuses on Affordable Housing Plan
- Meeting Overview:
The Dunellen Borough Council meeting focused on community issues, including the decision to reject a $5.5 million bid from New Jersey American Water for the borough’s wastewater system. The council also advanced its obligations under the state’s affordable housing requirements, identified key infrastructure improvements, and discussed community responses to recent storm damage.
The potential sale of Dunellen’s wastewater system was a major agenda item. Representatives from NW Financial presented the sole bid received from New Jersey American Water, which proposed a $5.5 million purchase and an additional $2.5 million investment in capital improvements over five years. Despite this offer, the council was advised to reject the bid. It was noted that although the bid appeared financially attractive, much of the proceeds would be used to pay off existing debt, with limited immediate financial gains for the borough. Concerns were also raised about the proposed seven-year rate plan, which included an initial 10% rate increase, followed by annual 3% hikes, potentially straining residents’ finances.
The council decided that maintaining municipal control over the wastewater system offered better long-term benefits, emphasizing the importance of sustainable rates and service quality. The council moved to reject the bid.
Affordable housing was another focus, with the council addressing its obligation to provide 11 affordable housing units within the downtown redevelopment area. A presentation on the fourth-round fair share housing plan outlined Dunellen’s requirements to create affordable housing opportunities, tracing the history of state legislation and the borough’s current obligations. The plan involves a mix of new construction and rehabilitation of existing substandard homes, with a target of 23 affordable units by 2035. However, adjustments to this requirement based on vacant land analysis reduced the immediate need to 11 units.
The council discussed the importance of adopting a spending plan to support these housing efforts, which would outline expected revenues and expenditures for the affordable housing trust fund over the next decade. The plan relies heavily on development fees from new housing or commercial construction, with a portion reserved for affordability assistance. The council expressed a commitment to meeting these obligations while maintaining the town’s character, focusing development efforts within the existing downtown area.
Infrastructure improvements were also on the agenda, with discussions on several grant-funded projects aimed at enhancing the borough’s streets and community facilities. Resolution approved a grant submission for the Third Phase of Second Street improvements, while Resolution addressed sidewalk issues on New Market Road. Resolution 266 sought to improve lighting along key avenues, continuing efforts to enhance the downtown area’s aesthetic and safety.
The recent severe storm that impacted the borough was acknowledged, with reports highlighting community responses and cleanup efforts. The council praised local agencies and volunteers for their swift action in restoring power and clearing debris. Updates were provided on ongoing projects affected by the storm, with adjustments made to construction schedules to accommodate cleanup activities.
The meeting also featured updates from various council members and departments. The recreation department announced upcoming events and highlighted the success of the summer camp program. Public comments were invited, though none were received, concluding the meeting with a focus on future initiatives and continued community support.
Jason F. Cilento
City Council Officials:
Trina Rios (Council Member), Teresa Albertson (Council President), Crisol-Iris Lantz (Council Member), William Scott (Council Member), Daniel Cole Sigmon (Council Member), Hal VanDermark (Council Member)
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Meeting Type:
City Council
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Committee:
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Meeting Date:
07/07/2025
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Recording Published:
07/07/2025
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Duration:
112 Minutes
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Notability Score:
Routine
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State:
New Jersey
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County:
Middlesex County
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Towns:
Dunellen
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