Download The Gaslight Fall 2024 Edition HERE

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Neighbors,

 

As the crisp autumn air fills our town and the vibrant colors of fall paint our streets, I want to take a moment to connect with you about an important decision that will shape the future of our community.

 

Next month, during the General Election, in addition to selecting your elected officials at various levels of government, you’ll be asked to vote on a local question regarding whether South Orange should sell its water utility to New Jersey American Water (“NJAW”) for $19.7 million.

 

I am encouraging you to vote yes.

 

Over the past few years, I’ve been closely involved in this issue. In September 2022, I appointed a Water Utility Task Force to examine our options carefully. Since then, the Village has undertaken incredible due diligence, leveraging the knowledge of our community volunteers and professional staff and contracting with firms to complete valuation studies, engineering reports, staffing models, reviews of statutory regulations, and finally, a clear financial analysis of impacts on ratepayers in the immediate, short, and long term.

 

After this thorough review, the conclusion is clear: New Jersey American Water is in a stronger position than we are to own and manage our water utility—offering better service, faster improvements, and lower costs than the Village can provide.

 

In addition to the information provided in this edition of the Gaslight, you can access all presentations and reports on SouthOrange.org, including town hall meetings recorded for your convenience. I encourage you to take the time to review the details for yourself.

 

Beyond my endorsement, this sale is fully supported by our Water Administrator, Village Administrator, Village Engineer, Chief Financial Officer, Purchasing Agent, Village Attorney, and the Water Utility Task Force Chair.

 

Please Also Consider:

 

• Our water distribution system is a liability, not an asset. Most of our infrastructure has passed its useful life (over 100 years old) and will need $50M in capital improvements over the next ten years.

• We don’t have our own water source. We purchase our water from NJAW under a bulk service agreement. To be clear, the Village has been buying its water for over 30 years. A water supply/reservoir and treatment plant would be an asset; we don’t have one.

• Economies of scale. Our customer base is approximately 4,500, whereas NJAW’s is 668,000. The cost of infrastructure upgrades is spread throughout all ratepayers, creating greater stability, particularly with a very volatile regulatory environment.

 

As a small community of just 2.8 square miles, it simply makes sense to partner with a reputable and regulated company that already owns and operates water systems in surrounding towns like Maplewood, Millburn, West Orange, and Irvington. NJAW has the expertise, resources, and scale to efficiently maintain and improve our water system, as it’s done for neighboring towns.

 

This isn’t the first time I’ve asked you to trust in forward-thinking solutions for our Village. Shortly after becoming Mayor, I asked you to support the sale of Village Hall, which is now thriving as a restaurant and a rentable. The financial decision allowed us to fast-track moving on to other critical investments like our Baird Community Center and Public Library. In 2019, I asked you to support consolidating our fire department with Maplewood, which is now the largest and most successful municipal consolidation in the State of New Jersey in the past eight years.

 

The battle to the bottom of municipal inefficiency locally and statewide pains me to no end, especially its impact on residents. I wholeheartedly embrace looking at alternative ways to deliver services to our community, whether regionalization, shared services, consolidations, insourcing, outsourcing, or partnering with the private sector when appropriate—and this is that occasion.

 

In closing, please do your research, ask questions, and always feel free to contact me directly.

 

Sheena C. Collum

Mayor