Massive sewer rate hike on the way

WEST GOSHEN » The township considered a substantial jump in sewage rates, at a special joint meeting of the board and sewer authority, Wednesday night.

To pay for maintenance, and needed repairs and upgrades, the average customer discharging 12,000 gallons per quarter of effluent might see their rate go from $65 a quarter to $97. No final vote has been taken and the amount of the increase has not been set yet by the board.

As was discussed at length, with one proposal to establish a capital reserve fund and collect $1 million per year from authority customers in West Goshen, the rate might rise to $118 per quarter.

The township is concerned with fixing equipment and infrastructure before it malfunctions and breaks. A little bit of maintenance now can save money in the long run.

“There is something to be said for funding something early and rehabilitating and fixing,” Josh Fox, authority engineer, said.

“We’re out there vigilantly trying to find out where the problems are,” Mike Moffa, wastewater superintendent, said.

The authority figures it needs about $27 million over the next

five years to keep toilets flushing.

A second quarter 2017, $17 million bond issue, along with $7 million contributed from partners East Goshen, West Whiteland, Westtown and Thornbury townships, and $3 million culled from reserves, should keep the system running.

The bond interest rate is set at 3.1 percent and will cost West Goshen ratepayers $1.24 million for each of the next 20 years.

For 2016, the annual operating cost was $4.78 million, with 9 percent contributed toward debt service, 21 percent for administration and township costs and 70 percent for operation and maintenance.

Projected cost estimates for 2019 through 2023 are expected to run $6.37 million per year, with 20 percent set aside for debt service, 15 percent for administration and 65 percent for operation and maintenance.

Much of the bond issue receipts will be used to meet mandatory regulations, including strict rules for phosphorus discharge into Goose Creek. Phosphorus is found in detergents and soaps. Its discharge is an environmental and public health issue.

The system houses more than 100 miles of pipe and nine miles of force mains, which power compressors and pump effluent to a higher elevation. There are about 3,000 manholes which can cost more than $40,000 each to rehabilitate.

Sparks flew when Supervisor Chris Pielli questioned why early, preliminary estimates forecast a possible rate increase at 25 percent of what is now being suggested.

“It was a shock to me and a lot of other people,” Pielli said.

“They were very preliminary numbers,” Tina Smith, sewer authority member, said. “We still had work to do on the numbers.

“It took a lot of time to do our homework.”

Pielli: “The numbers that were presented to the board on March 8, 2017 were not preliminary numbers. The increase of less than $9 per quarter was presented to us as the exact rate increase.”

Sewer Authority member Ted Murphy suggested that the system was failing.

“We had an obligation to make sure that the plant was running well,” Murphy said. “We also had to make sure it was funded.

“Had you waited a couple more months, you could have had a disaster.”

Supervisor Mary LaSota addressed Pielli.

“It’s easy to quarterback on a Monday night—it’s easier to look back now.”

Pielli said “the facts” matter.

“We can only base our decisions on facts,” he said.

“Supervisors LaSota and Robin Stuntebeck inherited this problem from the previous board,” Pielli said.

Township resident Tom Casey suggested that a public hearing be held “so we can hold those who are responsible. As a rate payer being told that my rates are increasing 50% or more due to the failure of proper management and oversight over the last 18 years is unacceptable. Residents should not be the ones who have to be held accountable in this manner simply because they flushed.”

Resident Doug White said that the sewer authority is performing its due diligence to fix the infrastructure.

“I trust the board,” he said.

Audience members listen intently as the West Goshen Sewer Board considers a major rate increase. Board members Shaun Walsh, left, Tina Smith, Dan Tierney and Ted Murphy at the joint meeting with supervisors, Wednesday night.