By Mark Rosman
Staff Writer
ALLENTOWN – Planned upgrades to the borough’s waste water treatment plant off Breza Road will modernize an aging facility and bring new costs to ratepayers.
The additional cost was explained by June Madden, the borough’s chief financial officer, during a discussion at the Feb. 28 meeting of the Allentown Borough Council.
She said that beginning in 2019, the borough will begin paying back the money it is going to borrow to complete the treatment plant upgrades. Madden said the annual payback amount is expected to be about $185,000 for 20 years ($3.7 million).
When the payback of that loan begins, the increase on a ratepayer’s annual bill could be $125, even as additional surplus funds are applied in the sewer budget, according to Madden.
Madden attended the Feb. 28 council meeting to give Allentown’s elected officials information about the four budgets they control: the municipal budget, the water budget, the sewer budget and the open space budget.
Several years ago, Allentown residents were hit with a significant increase in their annual sewer bill as officials dealt with issues arising at the borough’s aging waste water treatment plant.
In response to those issues, in November 2016 the council adopted an ordinance that appropriated $3 million for significant upgrades to the treatment plant and authorized the issuance of bonds in that amount to finance the project.
Councilman Thomas Fritts asked when residents would see a decrease in their sewer bill.
Madden said it may not be possible to provide a rate decrease on what Mayor Greg Westfall said is an average $1,140 annual sewer bill.
The revelation of an increase in residents’ sewer bills was sobering for the members of the governing body.
Fritts suggested that a modern waste water treatment plant should produce operational savings for Allentown and he said that issue needs to be explored.
Fritts and other council members asked Madden to explore the possibility of paying back the bonds over 30 years instead of 20 years as a way to lessen the expected increase in the sewer bills.
Madden said she would pursue that direction from the council.
In other news, Madden said the 2017 municipal budget is expected to total $2.4 million, to be supported by the collection of $1.54 million in local property taxes. Other revenues account for the remaining $860,000 in the budget.
The owner of a home assessed at the borough average can expect to see his municipal tax increase by about $20 from August 2017 through July 2018, she said.
The municipal budget will be introduced by the council at an upcoming meeting. The next council meeting is scheduled for March 14.