PUBLIC NOTICE is hereby given that a Public Hearing will be held as part of the Common Council Regular Meeting on March 20, 2023 by the CITY OF SALEM, COUNTY OF SALEM, STATE OF NEW JERSEY (the “City”) on the Emergent Conditions certification in connection with the proposed SALE OF THE CITY WATER AND SANITARY UTILITY SYSTEM (collectively, the “Systems”).
The Public Hearing shall take place on March 20, 2023 at 6:30 pm at 113 Market Street Salem, NJ after notice and advertisement in accordance with N.J.S.A 58:30-5(d). The Public Hearing is being held in anticipation of a proposed sale of the Systems to a capable private or public entity. The meeting will discuss the Utility System Reports prepared by the City Engineer and the financial report prepared by an Independent Financial Advisor (NW Financial Group, LLC) All reports are available on the City website listed below. The certification of emergent conditions is based on the following findings: (1) Regarding Emergent Condition No. 4, there is lack of historical investment, repair, or sustainable maintenance in the Systems as required by N.J.S.A. 58:30-5(b)(4); and (2) Regarding Emergent Condition No. 5, the City lacks the financial capacity required to adequately address investment, repair, and sustainable maintenance of its water and wastewater system on a sustainable basis. In addition, the Independent Financial Advisor has conducted a review of information provided on the facilities, past and current utility records and current operations to report findings regarding conditions that exist and estimates necessary to address the emergent conditions and to operate and maintain the Systems. The Independent Financial Advisor has concluded that the range of potential values for the water assets of the City is between $9.5 million and $28.2 million. The report further acknowledged that it would cost approximately $1M per year over the next 20 years to address the emergent conditions, requiring a rate increase of at least 68%. The Independent Financial Advisor’s Report is available on the City website at www.cityofsalemnj.gov. Ben Angeli, RMC