EHC Council votes to sell water and wastewater utility | Local News

Egg Harbor City’s water and sewage system



EGG HARBOR CITY – Egg Harbor City Council agreed at its meeting on Thursday to hand over control of its water and wastewater facilities to New Jersey American Water Company Inc.

Seven councilors supported the sale, while councilor Donna Heist withdrew from the vote and councilor Karl Timbers cast the only vote against. Two-thirds of the council or six members had to approve for the sale to take place.

Timbers called on the council to put the resolution on sale.

“The funds we receive from the CARES Act, as well as potential revenue from legalizing marijuana, could potentially be used to support infrastructure,” he said. “These variables didn’t exist until the city started negotiations to sell the utility company. If we sell the water system, it will be gone forever. “

Urban engineer Ryan McGowan helped negotiate the deal.

“If we didn’t do this sale, we’d have to increase rates by seven to eight percent just to come over,” he said. “There is no way forward to cut interest rates. Instead, residents receive a five percent discount. “

The city will receive $ 21.8 million from the company plus the sum of all transaction costs to convey all rights, titles, and interests of the systems.

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