Trenton Water Works Press Release

FOR  IMMEDIATE RELEASE:

June 1, 2010

Press Contact: John Nalbone

Phone: (609) 273-4140

Mack urges Trentonians to reject water sale

TRENTON – (June 1, 2010) – City of Trenton mayoral candidate Tony Mack is urging voters of all parties and affiliations to reject the referendum that would sell off piping and other key Trenton Water Works infrastructure to New Jersey American Water Co. when they head to the polls June 15.

“Trenton Water Works is one of our most prized assets,’’ said Mack, who will campaign against the sale in the days leading up to the June 15 runoff election. “Last year our water works had gross revenues of approximately $42 million. That is an asset. There also is the issue of jobs. If Trenton Water Works is sold, there is no guarantee current employees will retain their positions.’’

Mack believes more than ever that the City of Trenton should not be lured into selling off the suburban lines, which last year generated over $25 million, or 60 percent of Trenton Water Works’ $42 million in annual receipts.

 “With us bearing the costs of production and supply, New Jersey American Water would receive the majority of the $25 million from the suburban sales,’’ Mack said. “Instead of Trenton keeping those revenues, we would get only $9.6 million and they would get $15.4 million? Does that sound like a good deal? The answer is no.’’

Mack also is warning residents not to be misled by the glossy and aggressive advertising campaign launched by New Jersey American Water Co. promising a $400 million windfall for Trenton over the next twenty years.

“The $400 million offered by New Jersey American is half of what our suburban lines would pay us if we owned them,’’ Mack said. “Without touching the rates, Trenton Water Works will make $800 million, or twice what they are promising us in this so-called “deal.’’ Sale or no sale, we still have to produce and pump out that drinking water, so why allow them to dip into our revenue stream?’’

Mack also notes that the contract, as proposed, contains an “opt-out’’ clause that provides no guarantee that New Jersey American Water Co. will continue to pay Trenton anything after three years.

Therefore, the estimated $400 million in revenue coming back to Trenton could be sliced to $60 million, leaving the city with no revenues from either the suburbs or New Jersey American Water Co.

If triggered, the “opt-out’’ clause would put Trenton Water Works on the brink of financial collapse, forcing a drastic rate hike to be imposed on its Trenton customers. The only other option at that point, says Mack, would be to sell one of the city’s primary assets to New Jersey American Water Co.

Additionally, with the expansion of services to neighboring communities likely to occur in the near future, the creation of new jobs for Trenton residents would appear improbable.

“There are just too many reasons why we need to kill this deal,’’ Mack said. “Yes, Trenton is facing a fiscal crisis, but selling off one of our true assets is not the way to solve it.”

Press contact: John Nalbone
Phone: (609) 273-4140
Email: johnalbone@comcast.net
Web site: www.tonymack.com

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