Newark Water Crisis: Essex County Helps City Nab $120M In Loans

NEWARK, NJ — Officials have been demanding federal funds to help Newark cope with elevated levels of lead found in some of its drinking water. But Essex County is helping the city give itself a hand up in the meanwhile.

On Monday, Essex County Executive Joseph DiVincenzo Jr. announced that the Essex County Improvement Authority (ECIA) will be helping the city obtain $120 million in funding, which will enable the city to speed the replacement of pipes at thousands of local homes.

DiVincenzo said the ECIA’s borrowing power will allow Newark to obtain crucial, contamination--fighting funds at "considerably lower interest rates" without further burdening the city's ability to fund future capital improvement projects.

In February, the Newark City Council gave an official go-ahead to begin phase one of an eight-year, $75 million effort to replace thousands of residential lead service lines, one of the suspected sources of the contamination.

• See related article: Newark's $75M Solution For Water Woes Moves Forward

Those lines are not owned by the city, but rather by individual homeowners. While the average cost of replacing residential lead service lines can range between $4,000 and $10,000, Newark homeowners' out-of-pocket payments are capped at $1,000 under a program developed by city and state officials.

By the time the project is complete, about 18,000 homes across Newark will have new service lines, city officials previously said.

According to a statement from DiVincenzo's office:

"Using funding from the state, Newark was able to begin the first phase of a 10-year program to replace lead water service pipes in March 2019. There are about 18,000 properties where lead service pipes need to be replaced. To date, the pipes at approximately 700 properties have been replaced. Getting the $120 million up front will enable the city to award contracts more quickly and to multiple contractors simultaneously, with the expectation that the entire job could be completed within 24 to 30 months instead of being prolonged over a decade."

The proposed agreement will be presented to the Essex County Board of Freeholders, the Newark City Council and the ECIA Board of Commissioners for their review. Each body has scheduled special meetings for Tuesday, Aug. 27 to consider the proposal.

If approved, the money should be available to Newark later this fall, DiVincenzo said.

The same terms of the loan program have been extended to the municipalities of Bloomfield, Belleville and Nutley, which purchase water from Newark for sections of their communities, DiVincenzo said.

• See related article: Bloomfield, Belleville, Nutley React To Newark Water Woes

Gov. Phil Murphy, who recently said he will not be declaring a state of emergency in the city, said the funding boost shows the dedication of state and local officials when it comes to tackling Newark's "lead challenges."

"Although we are all working hard to address the near-term priorities of providing bottled water and implementing a corrosion control system, we are also clearly focusing on the long-term solutions, including replacing aging water infrastructure," Murphy said.

Essex County Freeholder President Brendan Gill described the challenge facing Newark as "urgent."

"As a board, we look forward to approving this legislation that will make significat strides for the health and well-being of our residents, especially those who are most vulnerable," Gill said.

The New Jersey Sierra Club also offered praise for the county's decision on Monday.

"The biggest problem Newark has is getting to replace their outdated water lines," Director Jeff Tittel said. "Joe DiVencenzo’s announcement is the first real step in making sure that happens. What he did is important, especially for the people in Newark going through this nightmare."

However, Tittel added that it’s good Newark is getting funding to deal with the lead crisis, but people shouldn't assume that things are okay.

"We have a long way to go," Tittel said.

According to the New Jersey Sierra Club, lead levels in Newark’s water supply tested at 52 parts per billion between January 1 and June 30 of 2019. These are the highest levels ever recorded in Newark, an increase from 48 parts per billion during the last 6 months of 2018.

The city recently began handing out bottled water for residents in the Pequannock service area after the U.S. EPA said water filters – a key element of officials' plan to fight the contamination – may not be working as expected.

• See related article: Feds Say Use Bottled Water In Newark, Filters Unreliable

Several high-ranking Democrats in New Jersey have been pushing to make federal funds available to Newark as the city deals with its ongoing lead contamination crisis, including U.S. Senators Bob Menendez and Cory Booker and U.S. Congressmen Albio Sires and Donald Payne Jr.

• See related article: 4 NJ Democrats Want Federal Funds For Newark's Lead Water Crisis

The city's mayor, Ras Baraka, has also advocated to bring federal funds to Newark.

On Monday, Baraka said the low-interest loan will help the city achieve its goal of “replacing every lead service line” in its borders.

The loan will “expedite the process tremendously,” Baraka said.

“This is big news for the City of Newark, but also sets a precedent across the country about how New Jersey is stepping up to the plate to address water infrastructure challenges for its residents,” Baraka said.

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