Thursday, January 24, 2008

New Jersey township considers selling water utility

It seems a truly tragedy -- a township in New Jersey is considering selling water utility due to budget difficulties, as Courier Post (1/23, Duhart) reported. Yet it is not immediately clear the potential proceeds can be enough to cover debt service and costly cleanup of contaminated. No interested buyer has been identified either.

Before making any rush conclusion, however, I am left behind the story with lots of questions:

  • What is the rationale behind the state-ordered ban on new sewer connections that caused the utility fee to raise 300% last year?
  • What has caused the water to be contaminated "with radium and gasoline additives" that is so costly to clean up?
  • How water service is typically provided in other townships? Are they having the same difficulties?
  • Why "[residential] opinions on the move were universally positive" and "the prevailing question is why wasn't it done years ago?"
  • Can the water utility be better managed by a private company? How about options of regional collaboration?

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