Mayor James Solomon and the Jersey City Municipal Utilities Authority (JCMUA) announced May 28 that the JCMUA is moving to update the city’s water and sewer connection fees for the first time since 2001.
The city said this would end more than two decades in which developers paid the same rate to tap into Jersey City’s water and sewer system.
The updated fee schedule, supported by an independent study by NW Financial Group, would set the maximum water connection fee at $4,516 per equivalent dwelling unit (EDU) and the maximum sewer connection fee at $3,691 per EDU. Updated fees will be phased in, with 50% of the increase taking effect on June 1, followed by full implementation on Jan. 1, 2027.
Currently, a large residential project with 100 units pays $185,020 in connection fees; under the new fee structure, the same project will pay $760,000. Similarly, a large commercial project pays $27,940 and will be reassessed to $67,556 going forward.
“If you’re building in Jersey City, you should pay your fair share toward the infrastructure that makes your building possible — just like how our residents pay their utility bills,” said Solomon. “This is about basic fairness, and it’s about making sure the people who live here are not subsidizing the people who profit here.”
Under the current structure, connection fees do not cover the actual cost of delivering water and sewer service to new development, leaving existing ratepayers to make up the difference through their monthly bills. The updated fees will ensure that new connections contribute a proportionate share of the debt service and the capital already invested in the system, which is currently being carried by ratepayers.
“The current connection fees are insufficient to meet the obligation for new development projects in Jersey City,” said John J. Metro, executive director of the JCMUA. “This update brings our fees in line with the cost of delivering water and sewer service to a growing city and ensures that the cost of existing infrastructure is borne by those who benefit from it most directly.”
Going forward, the JCMUA will recalculate connection fees at the close of each budget year, with a public hearing held before any such adjustment is made. The Jersey City Municipal Utilities Authority was scheduled to hold a hearing on May 28 to set new water and sewer connection fees.
In January, Solomon announced a series of actions to make Jersey City more affordable and accountable, including the launch of a comprehensive audit of all tax abatements and reforming fees that have burdened community organizations seeking to hold cultural celebrations.
“That era of putting developers first ends today,” he said at the time. “Jersey City cannot be a place where it is easier to build a highrise than to celebrate Filipino culture on our streets. We’re going to ensure developers pay their fair share.”