If Trenton keeps the suburban portion of the utility: 

REVENUE FROM SUBURBAN PORTION :                          $25 million
REVENUE FROM CITY PORTION TO BE RETAINED:       + $17 million

CURRENT TRENTON WATER UTILITY REVENUE:             $42 million

If Trenton sells off the suburban portion of the utility:

REVENUE FROM WATER SOLD TO NJ AMERICAN:            $10 million*
REVENUE FROM CITY PORTION TO BE RETAINED:        +$17 million

REVENUE AFTER SALE OF SUBURBAN SYSTEM:               $27 million


$42 million - $27 million = $15 million less revenue

$15 million revenue - $4 million estimated savings** = $11 million less in revenues from remaining part (city only) of Trenton Water Works.

$11 million less revenue = no more surplus

$11 million less revenue = no more cash to keep your taxes low

$11 million less revenue = a probable water rate hike as the cost of operating and maintaining the remaining water system is spread over fewer customers.

Less customers = Higher cost per customer

*As part of the sale agreement, NJAW will contribute 60% of the cost of the upgrades to the TWW water treatment facility that is currently underway.

**Per Public Works Director Eric Jackson on 1/22/09, a cost analysis of the savings to be derived from not having to operate and maintain the outlaying water distribution system had not been completed even though the deal to sell of that part of the Trenton Water Works was presented to city council as done.  The administration has since been using the “ballpark” figure of  $4 million in annual savings from not having to maintain the parts of the system being sold off.