The council’s decision to consider the sale followed the dissolution of the Gloucester Township Municipal Utility Authority (MUA) in 2023. After receiving two bids, one from New Jersey American Water for $143 million and another from Aqua New Jersey for $52 million, the council voted to accept the higher bid. The sale is expected to alleviate approximately $67 million in debt and a $9 million annual debt service, potentially leading to tax relief and other financial benefits for the township.

During the public hearing, residents expressed a spectrum of concerns and skepticism regarding the sale. Questions about potential conflicts of interest were prevalent, especially considering the mayor’s previous employment with New Jersey American Water. One resident pointedly asked, “I notice that the mayor is not here… I’d like to see him here to say that I will not get any benefit from the sale of the sewer Division.”

Concerns about transparency and communication were echoed throughout the evening. Residents criticized the council for inadequate public engagement and the absence of detailed information. One resident highlighted the lack of communication, stating, “Hey, this is going to be on your ballot this November… if we have the campaign funding to do those types of mailers, why don’t we have mailers that say, ‘Hey, we have a desire to sell something that we have owned for decades’?”

A point of contention was the potential impact on utility rates. New Jersey American Water’s bid included a $90 million capital investment over the first ten years, promising various infrastructure improvements. However, residents questioned the necessity and accuracy of these projected needs. One resident noted that examples from other municipalities, such as Cane Burrow in Pennsylvania, showed dramatic rate increases following similar privatization efforts, with jumps as high as 123%.

A resident named David Leader raised concerns about the implications of the sale on employment for current sewer utility employees, questioning the guarantees for their job security beyond six months. This issue was compounded by frustrations over the lack of communication between the township administration and utility employees about the potential sale.

Skepticism about the financial management and overall necessity of the sale was a recurring theme. Timothy Rodic voiced a sentiment shared by many, stating, “if it ain’t broke don’t fix it,” arguing that the current system had functioned adequately without the need for such drastic changes. Similar concerns were amplified by residents like Barry Salvator, who questioned the absence of a comprehensive audit of the MUA’s revenue generation and the overall transparency of the council’s financial decisions.

Discussions also delved into the broader economic impacts on vulnerable populations, particularly seniors and those on fixed incomes. Residents highlighted the already high cost of living in Gloucester Township, with one individual noting, “Food is almost 30% more,” and expressing that another utility rate hike would be unmanageable for many.

The debate around the sale included a comparison of the township’s financial strategy to personal financial management. Maryann Johnson emphasized the importance of living within one’s means, stating, “if you don’t have the money the services must go with what you have.” This analogy was used to argue against the potential sale and the associated financial risks.

One resident urged the council to consider alternative funding sources, such as increased taxes on cannabis dispensaries, to alleviate the financial burden on residents instead of privatizing public utilities.