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 $6.3M Loan for Mini-System #36 Sewer Rehab as Town Expands Sewer Work and Faces Contractor Lawsuit

What’s happening now

The town council will vote on Monday at 7 p.m. on borrowing $6.3 million through the New Jersey Infrastructure Bank (NJIB) Construction Financing Loan Program to fund the Mini-System #36 Sewer Rehabilitation Project. The work targets much of northern Princeton inside the area bounded by John Street, Ewing Street, Mount Lucas Road and Quarry Street. Council members will also consider a separate sanitary sewer replacement on Hamilton Avenue that could cost up to $409,670.

Why the project is being proposed

Recent assessments found that large volumes of rainwater and groundwater are entering the sanitary sewer network through cracked joints and aging pipes. Flow studies estimated that 40–50% of total sewer flow in some places is unwanted infiltration. That extra flow increases the town’s payments to the regional treatment authority and raises operating costs. The Mini-System #36 work is intended to reduce that added volume by sealing pipes and injecting a non‑toxic chemical grout into joints and cracks, and by strengthening pipes to avoid more invasive future repairs.

Funding and budget context

The proposed borrowing follows earlier council authorizations for sewer-related borrowing in June of 2023 and June of 2024. The municipality has identified sewer costs as a major driver of recent budget increases and tax changes. The 2025 municipal budget shows sewer system expenses rising by $154,981, from $1,297,545 in 2024 to $1,452,526 in 2025, making sewer operations the second‑highest Public Works expense line. A draft budget also shows an increase of $211,863 in funding for the regional treatment authority responsible for treating wastewater.

How the project will reduce costs

Town officials and engineers say the Mini‑System #36 work will reduce the amount of clean groundwater being treated as wastewater. Lower treatment volumes should reduce variable charges from the regional authority and cut long‑term operating costs. The project also aims to limit future major construction by fortifying existing pipes now. Town planning documents project a long‑term investment program through 2031 that would average about $7.25 million per year for replacement of mains, I&I reduction, trunkline work, pump station repairs and equipment replacement, plus roughly $3 million per year to catch up on deferred maintenance.

Rates and impact on homeowners

The sewer fee for an average single‑family user was previously listed at $435 (2022 figure). Under the proposed multi‑year plan, sewer fees were projected to rise roughly $40–$50 per year through 2031 to cover new debt service and operating needs, with a hypothetical projection that fees could reach about $841 by 2031 if the plan proceeds as presented. Sewer fees are added to the property tax bill and are only paid by homes served by public sewers; about 80% of Princeton homes are connected to the public sewer system.

University contributions and infrastructure support

The town’s capital and operating picture has been affected by a multi‑year pledge from a local university to support municipal infrastructure and lower‑income resident programs. As part of that pledge, a portion was designated for unrestricted municipal use and a portion directed to specific infrastructure projects, including sewer repairs. The prior year’s municipal receipts from the university included both tax payments and voluntary contributions, with several million dollars earmarked for sewer work.

Contractor dispute and court order

Separately, the municipality is entangled in a legal dispute with a contractor with a multi‑million‑dollar sewer contract. A county superior court judge issued a temporary restraining order preventing the town from rescinding a roughly $2.75 million contract for sewer rehabilitation pending further court action. The contract cancellation stemmed from discovery of an onsite container holding asbestos‑containing materials at a municipal facility and disagreement over whether handling and storage violated state rules. The contractor filed suit claiming direction from municipal employees about where to place materials and asserted financial harm if the contract were canceled. The court reviewed procedural and statutory issues and ordered the parties to confer on next steps, noting potential irreparable harm to the contractor if the contract were summarily canceled.

Other sewer projects and pump‑station work

Construction contracts for other sewer work were awarded to a New Jersey firm in late August. The town has been studying pump stations across the system; six stations were identified for analysis to determine replacement and resiliency upgrades. Portions of ongoing street improvement projects are being coordinated with sewer replacements to avoid reopening recently repaired roadways. Many inflow‑and‑infiltration reduction techniques are trenchless and take place in easements or unpaved rights‑of‑way to minimize disruption, while full replacements requiring excavation are being timed with road projects.

What residents should expect

  • Possible localized disruptions during rehabilitation work, including temporary road or household impacts.
  • Work prioritized using flow‑metering data and targeted where infiltration is highest.
  • Coordination with other utility and road projects to limit repeated road openings.
  • Future annual sewer capital needs that may eventually level off after deferred maintenance is addressed toward 2031.

Next steps

The council will vote on the $6.3 million NJIB loan and several related resolutions at the Sept. 8 council meeting at 7 p.m. If approved, the Mini‑System #36 rehab will move into construction phases based on finalized contracts and schedules. The court‑ordered temporary restraining order will remain in place while the municipal contract dispute proceeds through the legal process.

FAQ

What area will the Mini‑System #36 project cover?

The project covers the neighborhood roughly bounded by John Street, Ewing Street, Mount Lucas Road and Quarry Street in northern Princeton.

How much money is the town seeking to borrow and from whom?

The council is considering a $6.3 million loan from the New Jersey Infrastructure Bank Construction Financing Loan Program.

Why is the work necessary?

Assessments found significant groundwater and rainwater entering the sewer system through old pipes and joints, increasing treatment volumes and costs. The work aims to seal cracks, reduce infiltration and strengthen pipes.

Will sewer fees increase?

Long‑term planning shows potential annual increases to cover debt service and operations, with a previous projection of roughly $40–$50 more per year for an average single‑family home until 2031, though final rates depend on Council decisions and funding choices.

What about the contractor lawsuit?

A temporary restraining order prevents the town from canceling a major sewer contract while the dispute is litigated. The matter involves alleged improper handling of asbestos‑containing materials and legal questions about prior conduct and contract default grounds.

When will construction start and how disruptive will it be?

Timelines depend on final approvals and bidding. Many I&I reduction techniques are trenchless and minimally disruptive, but pipe replacements and manhole work will require excavation and could coincide with road projects to reduce repeat disruptions.

Key project features at a glance

Feature Detail
Loan amount $6.3 million from NJIB Construction Financing Loan Program
Project area Mini‑System #36 — area bounded by John, Ewing, Mount Lucas and Quarry
Primary work Grouting joints and cracks, sealing pipes, selective main replacements
Goal Reduce groundwater inflow, lower treatment costs, extend pipe life
Related vote Council meeting on Sept. 8 at 7 p.m. to consider the loan and Hamilton Ave replacement
Other nearby projects Pump‑station analyses, Mini‑System 35 work, street projects coordinated with sewer work
Legal note Temporary restraining order prevents cancellation of a separate contractor contract while litigation proceeds

Deeper Dive: News & Info About This Topic

Additional Resources

Construction TX News
Author: Construction TX News

TEXAS STAFF WRITER The TEXAS STAFF WRITER represents the experienced team at constructiontxnews.com, your go-to source for actionable local news and information in Texas and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Texas Construction Expo, major infrastructure unveilings, and advancements in construction technology showcases. Our coverage extends to key organizations like the Associated General Contractors of Texas and the Texas Building Branch, plus leading businesses in construction and real estate that power the local economy such as Austin Commercial and CMiC Global. As part of the broader network, including constructioncanews.com, constructionnynews.com, and constructionflnews.com, we provide comprehensive, credible insights into the dynamic construction landscape across multiple states.

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