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Stewartstown Borough |
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Stewartstown Sewer & Water Department **Stewartstown Borough Sewer & Water Authority currently has a vacancy. If you are interested in serving on the Authority, and are a Borough resident, please attend a meeting to find out more!**
Stewartstown Borough Authority
March 5th: Stewartstown
Borough Council (Council) will adopt the final financial plan. May or shortly thereafter: Construction will begin. The Authority is pleased to have obtained grant and loan funding from Pennvest for a portion of the expansion costs. Over $800,000 were obtained, with about half of this money being grant funding and the remainder a loan. The remainder of the cost of the sewer plant expansion will be from a combination of bank account funds planned for this expansion plus the issuance of bonds. The total cost of the project is now expected to cost around 4.5 million dollars ($4.5M) due to the increased costs of compliance for the Chesapeake Bay Strategy limits being imposed by DEP, as well as, higher construction costs. Of this amount, a bond issue is expected to cover approximately $2.9M. The entire process of trying to obtain permits and funding over the last number of years has not been without a lot of effort by many folks. The ‘draft’ DEP permit was actually published six times over several years due to policy and staff changes at DEP, as well as, there being an approximately one-year delay in order for DEP to hash out the Chesapeake Bay policy. The Authority is very appreciative of the support from Senator Mike Waugh and Representative Stanley Saylor to obtain the Pennvest funding. In addition, the Borough is working with the Authority to obtain and support the bond financing. And, both Hopewell Township and the Borough have written letters of support for the Pennvest financing. Finally, the total cost of the project debt will ultimately come from user fees. The Authority recently raised the fixed portion of the quarterly sewer rates from $68 per unit to $85 per unit in expectation of a minimum $3M cost. In order to satisfy the requirements for the Pennvest grant and loan funding, the Authority must continue to ensure it can cover the debt. In order to do this, the Authority has decided to continue to phase in rate increases over the next few years to pay the debt service, as opposed to an immediate rate increase. The fixed portion of the quarterly sewer rate will be increased to $95 per unit in 2008 and $105 per unit in 2009. No rate increases are foreseen for 2010.
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