Princeton council to consider $6.3M loan for Mini‑System 36 sewer rehabilitation

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Municipal crew using trenchless equipment and safety barriers on a residential Princeton street during sewer rehabilitation work

, September 8, 2025

News Summary

Princeton’s council will consider borrowing $6.3 million from the New Jersey Infrastructure Bank to fund the Mini‑System 36 sewer rehabilitation covering neighborhoods bounded by John, Ewing, Mount Lucas and Quarry streets. The work uses trenchless methods, non‑toxic grout injections, selective lining and replacements to cut groundwater and rainwater infiltration, lower treatment costs and extend pipe life. The agenda also includes a Hamilton Avenue sewer replacement up to $409,670. Budget pressures and a multi‑year capital plan could raise sewer fees gradually. A court order is temporarily blocking rescission of a separate $2.75 million contract after a contractor lawsuit.

Princeton Council to vote on $6.3 million loan for sewer rehab as town expands repairs and faces contractor lawsuit

What’s happening now: The Princeton Town Council will vote on Monday at 7 p.m. to borrow $6.3 million through the New Jersey Infrastructure Bank’s Construction Financing Loan Program to fund the Mini‑System #36 Sewer Rehabilitation Project. The project covers most of northern Princeton inside the area bounded by John Street, Ewing Street, Mount Lucas Road and Quarry Street. Construction contracts for related sewer work were awarded in late August to a New Jersey contractor.

Why the loan matters

The Mini‑System #36 work is meant to reduce how much Princeton pays to treat wastewater. Municipal data show the town currently pays to treat more wastewater than residents and businesses produce because clean groundwater and rainwater are entering the sanitary sewer system. The project focuses on sealing pipe joints and cracks by injecting a non‑toxic chemical grout to stop groundwater infiltration. The work also strengthens pipes to avoid more invasive fixes later.

Budget and rate context

Sewage costs have been a steady concern for Princeton leaders. The town previously authorized borrowing for sewer repairs in June 2023 and again in June 2024. The municipality’s 2025 budget shows sewer system expenses rose by $154,981, from $1,297,545 in 2024 to $1,452,526 in 2025, making sewer work the second‑largest Public Works expense. The 2025 budget newsletter cited inflationary pressures on sewerage treatment payments as a factor behind higher spending and tax increases earlier this year.

A draft long‑range plan presented by the Sewer Committee anticipates about $7.25 million per year for nine years to replace mains, reduce inflow and infiltration (I&I), replace trunk lines and pump stations, and update equipment. An added roughly $3 million per year would be needed to catch up on deferred maintenance. If the plan proceeds as drawn, average single‑family sewer bills were projected to rise roughly $40–$50 per year until 2031 and could reach about $841 by 2031 in a worst‑case projection. The sewer fee is added to tax bills only for homes served by sewers; nearly 80% of Princeton homes are on public sewers.

Funding partners and local contributions

Princeton University pledged $50 million over five years in January 2024 for infrastructure and support for lower‑income residents; part of that pledge included $11.35 million earmarked for specific infrastructure projects and $28.2 million for unrestricted municipal use. In the previous year the university paid $8.8 million in property and sewer taxes and made $10.8 million in voluntary contributions, of which $4 million went to sewer infrastructure repairs. The town also plans to pay increased sums to the regional sewer plant; a draft budget shows Princeton’s share of Stony Brook Regional Sewerage Authority (SBRSA) funding rose by $211,863 from 2024 to 2025.

Other projects on the council agenda

  • The council will also vote to approve sanitary sewer replacement on Hamilton Avenue, a project that could cost up to $409,670.
  • A separate resolution awarded a construction contract to Lucas Brothers, Inc. for improvements on Alexander Street, Dickinson Street and University Place for $1,715,565, offset in part by an NJDOT Municipal Aid grant of $724,820. Two higher bids were received and rejected.
  • Work is underway on mini‑system projects elsewhere, including Mini System 35 along Mount Lucas Road, and portions of Witherspoon Street where clay pipe is being laid between Nassau and Spring Streets.

Legal dispute affecting sewer work

The town is also entangled in a legal dispute with a contractor that was awarded a separate multi‑million‑dollar sewer contract. A Mercer County Superior Court judge issued a temporary restraining order blocking the town from rescinding that contractor’s $2.75 million contract for work on Spruce Street and Linden Lane. The court action stems from an earlier discovery of a container of asbestos materials at a municipal facility and a series of municipal notices and contractual actions. The judge found that cancellation could cause irreparable harm to the contractor, noting uncertainty about whether conduct under prior contracts justified canceling a current contract where work had not begun. The order pauses municipal action while both sides and the court decide next steps.

Technical background and how residents may be affected

Princeton’s sewer network runs roughly 130–150 miles and includes mini systems, trunk lines and pump stations. Much of the system is older than neighboring towns and many pipes are not yet converted to modern PVC. Hard underground rock in much of Princeton makes it easier for groundwater to pool and enter aging pipe joints. Recent assessments estimated that 40–50% of sewer flow in some places is unwanted rainwater and groundwater infiltration. To address that, the town plans grouting creaky joints, targeted main replacements and pump station upgrades. Six pump stations are being analyzed for end‑of‑life replacement options, and full designs are expected to follow with hopes of contracting next year.

Most I&I reduction efforts are designed to limit disruption because they do not require major digging. When excavation is needed, the town intends to time sewer replacement with road reconstruction and other underground utility work so streets aren’t reopened repeatedly. Residents should expect occasional roadway or household disruptions during rehabilitations and repairs.

Decision timeline

The council’s resolutions, including the $6.3 million NJIB loan for Mini‑System #36 and the Hamilton Avenue sanitary sewer replacement, are scheduled for a 7 p.m. vote on Sept. 8. If approved, the loan would fund the next phase of targeted repairs aimed at cutting wastewater treatment costs and limiting future large‑scale interventions.

FAQ

What is the Mini‑System #36 project?

The Mini‑System #36 project targets sewer pipes in northern Princeton bounded roughly by John Street, Ewing Street, Mount Lucas Road and Quarry Street. Work includes injecting non‑toxic grout to seal pipe joints and cracks, reducing groundwater and rainwater entering the sewer, and strengthening pipes to avoid future invasive repairs.

Why is the town borrowing $6.3 million?

The town plans to borrow $6.3 million through the New Jersey Infrastructure Bank to pay for the Mini‑System #36 rehabilitation. The goal is to lower the town’s wastewater treatment bills by reducing inflow and infiltration and to repair aging underground pipes.

Will sewer bills go up?

Sewer expenses are rising and long‑term plans could increase average single‑family sewer fees by roughly $40–$50 per year for several years. Projections vary and the town has signaled debt service and operations will drive part of the increase; final figures depend on council approvals and financing choices.

How will the contractor lawsuit affect the work?

A temporary court order blocks the town from cancelling a separate $2.75 million sewer contract while the court and both parties sort the dispute. That legal action is separate from the Mini‑System #36 loan vote but underscores operational and procurement challenges the town is managing.

What should residents expect during construction?

Most I&I reduction work aims to be minimally disruptive because it often happens in easements and unpaved rights‑of‑way. Replacement work that requires excavation will be coordinated with road reconstruction and other utilities to limit repeat disturbances. Residents may still see roadway or household service interruptions during active work.

Key project and budget facts

Feature Detail
Council vote 7 p.m., Sept. 8 to approve $6.3M NJIB loan and Hamilton Ave work
Loan source New Jersey Infrastructure Bank Construction Financing Loan Program
Mini‑System #36 area John St., Ewing St., Mount Lucas Rd., Quarry St.
Project goal Reduce wastewater treatment costs by cutting inflow & infiltration
Hamilton Ave cost (est.) Up to $409,670
Sewer expense change +$154,981 (2024 to 2025): $1,297,545 → $1,452,526
University pledge $50M over five years; $11.35M for specific projects; $28.2M unrestricted
Infiltration estimate 40–50% of some sewer flows are unwanted groundwater/rainwater
System length Approximately 130–150 miles of sewers
Contract dispute Temporary restraining order prevents rescinding a $2.75M contractor contract
Alexander/Dickinson/University Place contract Awarded to Lucas Brothers: $1,715,565; NJDOT grant offset $724,820

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