A pending $143 million sewer sale in South Jersey has ignited a battle of lawn signs and campaign ads ahead of Election Day

When Gloucester Township residents make their way to the polls on Nov. 5, like the rest of the country, they’ll cast their votes in the pivotal presidential and congressional elections. But another item on the ballot is taking over lawn signs and campaign ads in the South Jersey township: whether the municipality should sell its public sewage utility to New Jersey American Water for a resounding $143 million.

The referendum has initiated a grassroots group to take action in the form of Teamsters-backed lawn signs, a website, a podcast, a Facebook group, and residents making their own signs and fliers, all urging votes against the sale. Even the local Girl Scouts troop is on their side. In response, New Jersey American Water has launched its own campaign, spending more than $830,000 on mailers; paid canvassing; and digital, outdoor, and some television advertising in favor of privatizing the utility currently overseen by the township.

Tensions remain high as seven advocates working against the referendum say they are frustrated by the whole affair, citing fears of increased sewage payment costs and a lack of transparency from their local government — allegations the township vehemently denies.

The board of the Gloucester Township Municipal Utility Authority unanimously agreed to dissolve itself in early 2023. It now functions as a utility, condensing the sewage system’s operating costs, said Tom Cardis, the township’s business administrator.

But residents against the referendum say they were assured by various leaders in the township that there wasn’t intent to sell the utility.

“That was not something that we had discussed at that time, so that really wasn’t something that was on the table, and there was no ulterior plan to sell it,” Cardis said. “It was just something that came about after that point in time.”

Then Cardis noticed other towns privatizing their sewage utilities and suggested to the township’s council president putting Gloucester Township’s system up for sale, citing it as a benefit for taxpayers. On July 8, the township’s council voted to sell the sewer to the highest bidder, and on Aug. 8, the council voted to put the matter to referendum on Election Day.

The situation has turned into a battle of distrust between residents and their local government.

In early July, the township opened applications for bids, receiving offers from two companies that already operate in Gloucester: one from Aqua for $52 million and another from New Jersey American Water for $143 million, plus a promise to invest an additional $90 million over 10 years on the sewer system’s infrastructure.

“The $143 million is a staggering amount,” Cardis said, noting how the money would wipe out — as required by law — the town’s about $65 million debt and allow the township to reduce property taxes and invest in law enforcement, recreation, and other community resources.

The township’s debt stems predominantly from investments in road improvements, public safety, and other infrastructure that can require financing that lasts 10 to 13 years, Cardis said.

Gloucester Township has highlighted benefits including allocating $10 to $15 million for recreational projects, expanding activities for seniors and arts and culture, and increasing funding for police and first responders.

“Far as I’m concerned, this is a great deal for Gloucester Township, a great deal for the taxpayers, a great deal for the residents, I think everybody benefits,” Cardis said.

The sewer utility maintains and services the Gloucester Township Sewer System.

Consisting of 51 pumping stations with 13 associated miles of sanitary sewer force mains, the Gloucester Township utility maintains more than 300 miles of pipe and transports 8.7 million gallons of sewage each day to the Camden County Municipal Utility Authority’s regional treatment plant.

Operating as a utility allows the township to cut costs on board member salaries, and additional engineering, legal, and other fees, Cardis said.

If voters approve the sale, township residents’ rates will be frozen at their current status for two years, said New Jersey American Water president Mark McDonough. Over the next three years, sewage bills would increase by a total of 9% — about $16.56 — at the conclusion of the five-year period. In a statement, NJ American water said customers would not see surcharges within that period.

Additional increases after that would be reviewed by New Jersey’s Board of Public Utilities, Cardis said. The township has pointed to other ways in which they say the sale would save residents money, such as decreased property taxes.

After five years, residents would face a “wastewater system improvement charge” surcharge, which helps fund wastewater infrastructure, including replacements or repairs, according to New Jersey American Water. The most recent such surcharge applied to an average bill was $3.05 for six months, the company said. Any rate change would be expected to take place over roughly 15 years, the company said.

Last spring, Denise Coyne stood outside the Gloucester Township municipal building in Clementon for hours, holding a sign that read: “They lied to us, they want to sell our sewer.”

Coyne, a retiree who has lived in the Camden County township since 1979 and has been civically engaged for years, wanted to alert people driving by that the sewer system was at risk of being sold to a private water and wastewater company.

Coyne said she and several others then moved on to other major intersections with their signs. ”That started people talking. And then we decided, well, now that we have people talking, we have to tell them what’s happening.”

The group says they’re concerned about costs, citing rate hikes in other towns — such as in Chester County, where residents say they have seen hikes as high as 100% after their towns privatized their water systems. And they’re skeptical of Gloucester Township Mayor David Mayer’s role as director of government affairs at New Jersey American Water (Mayer has recused himself from all dealings and conversations surrounding the sale), and wary of private sewage ownership that they believe prioritizes profit over reliable service.

They’re also angered by what they say is their local government not incorporating public input. And they feel the township’s $65 million debt could have been largely avoided in the first place.

Coyne said she and other residents went to town council meetings for years and “begged them not to over borrow and not to overspend.”

If the nine-figure sale goes through, Coyne said Gloucester Township’s residents should be major players in determining how the dollars are spent.

The sale is the best possible avenue for residents and alleviating the township’s debt burden, Cardis said.

Cardis said the public had a chance to comment on bid ordinances and the spending plan was on the township website, where there “was no keeping that and hiding that from anybody.” Council meetings are also posted on the township’s YouTube channel, he noted.

“I don’t agree with that, the allegation that there’s not enough transparency,” Cardis said. “I mean, I’ve heard from the moment that the concept of this was spoken about, there were a multitude of individuals that came out against it. … I don’t know how receptive anybody would have been discussing anything.”

Cardis emphasized Mayer’s detachment from the process. And New Jersey American Water, which says its ownership would offer more oversight of the utility, said its interest in obtaining Gloucester’s sewer utility wasn’t influenced by Mayer’s position in the township.

Cardis also said if the utility is privatized, the township’s sewer employees would be offered jobs with the public works department and have guaranteed their salary, pensions, and health benefits.

Coyne and the others against the sale have ramped up their efforts ahead of Election Day.

The advocates are of various political affiliations, and say politics has nothing to do with it. But Cardis said he believes the resistance is fueled by those who oppose the township’s all-Democratic council.

“I think this whole thing has been politicized,” he said.

The sewer sale has become a competition to attract voters’ attention. New Jersey American Water’s roughly $830,000 campaign was part of their proposal to “conduct a voter outreach campaign to provide accurate information to voters on a very complicated issue,” the company said.

The Gloucester Township Observer Podcast, cohosted by residents Joe Allen and Keith Gibbons, is a main platform for residents advocating against the sale. Gibbons has found that their neighbors, and their 449 subscribers, trust them after they’ve recapped council meetings and local happenings for more than two years.

“I think there was a little bit of a level of trust, you know, that people had in it, and it’s helped in getting the word out. So we’re able to bring on expert speakers in the field of sewer and wastewater, that we can interview them and ask questions just like a regular person would ask,” said Gibbons, who is also serving his second term on the local school board.

The group has also hosted two community meetings to advocate against the referendum, spread their message on a Facebook page with 888 followers, and partnered with Food & Water Watch — an advocacy organization — to design and print out thousands of fliers to hand out around the township.

“We have to save ourselves. It’s that simple,” Coyne said, expressing her personal opinion. “We have to save ourselves.”