At our March 20, 2025 meeting, the Hopewell Borough Council passed a resolution approving a proposed Contract with New Jersey American Water (NJAW) for the sale of the Borough’s water system. Before being finalized, the Contract must be reviewed and approved by the New Jersey Board of Public Utilities (BPU), and the Division of Local Government Services in the New Jersey Department of Community Affairs (DCA). Once approved by these agencies, the Contract will be subject to a public referendum on the ballot of the November 2025 general election. The sale of the water system requires the approval by a majority of Hopewell Borough voters in that election.
Highlights of the Contract between Hopewell Borough and New Jersey American Water for the Sale of the Hopewell Borough Water System
- New Jersey American Water has agreed, upon closing, to disconnect Well #4 thus bringing the Borough’s water supply immediately into compliance with the NJDEP standard for PFOS, satisfying Emergent Condition #3.
- New Jersey American Water has agreed to immediately upon closing implement Water Rate Schedule A-1 which will provide for significant rate relief. These NJAW rates will match those rates currently in place in neighboring communities of Princeton and Montgomery.
- New Jersey American Water has agreed to invest at least $7M in the water system over its first 5 years of ownership. These costs are spread across the entirety of NJAW Rate Payers, and not just Hopewell Borough residents.
- New Jersey American Water has agreed to purchase the Borough’s Water System for $6.4M
- New Jersey American Water has agreed to improve the water storage system within the first 5 years of ownership
- NJAW must comply with regulations to remove all lead goosenecks and galvanized water lines by 2031 without additional direct costs allocated to the Borough or its customers.
- New Jersey American Water has agreed to refund the Borough up to $150,000 towards the Borough’s Transactions Costs incurred in connection with the sale of the system
Next Steps
Note that, as required by WIPA, the Contract will be submitted to the New Jersey Board of Public Utilities and the Division of Local Government Services in the New Jersey Department of Community Affairs for their respective reviews and is subject to their approvals prior to formal execution by the Borough and NJAW. Following approval by the State, the terms of the Contract would be presented to the Borough voters at the November 2025 general election for approval.
The Draft Contact between Hopewell Borough and New Jersey American Water is posted below. During the coming months, the Borough Council will host public information sessions and present the results of our ongoing fiscal and engineering analysis of the water system, so the community can make an informed decision about a sale to NJAW. We will provide updates and opportunities for public input during our regularly scheduled Borough Council meetings. We will also continue to add information and links to external resources to the Borough website, along with copies of public presentations, so you can evaluate this information at your own pace and convenience.
