Board answers questions on possible sewer sale
Study authorized in September to look into possible benefits
TOWAMENCIN » It’s still early in the process, but Towamencin residents have questions about the township’s possible sale of its sewer system, and the supervisors are working on getting answers.
Board Chairman Chuck Wilson answered a handful of questions Wednesday night about the board’s recent decision to look into a possible sale.
“First of all, we just want to clarify that, at this point, we have only authorized an analysis of the value of the system, and the current market value,” Wilson said.
The township’s sewer system pipes sewage to a treatment plant on Kriebel Road which was shared by Towamencin and Upper Gwynedd from 1964 to 2015, until the two townships separated ahead of a diversion project for Upper Gwynedd to instead send sewage to their own plant instead. As that diversion project nears completion, the board voted in September to authorize an outside firm to study the system, determine future obligations and upgrades needed, and examine the possible pros and cons of selling it to be run privately.
At the start of their Oct. 14
meeting, Wilson read several questions submitted as public comments for the board, including one asking why the board would consider a sale.
“Many municipalities here in southeastern Pennsylvania have taken the step, given the ever-increasing and changing burden of state and federal environmental regulations, and what that creates in terms of additional capital needs, expertise, and resources,” Wilson said.
“Additionally, these sales have generated tens of millions of dollars in proceeds for their communities, which do a great deal in terms of improving the financial health of a municipality, and can do so for decades,” he said.
Since the vote in September, the township’s sewer committee has had one additional meeting, and the only major result of that meeting was to gather information the outside consultant would need for the study.
“We, as a board, thought that we felt that we had an obligation to the taxpayers to at least look at the potential benefits of a sale,” he said.
A resident question cited a figure of $2 million in revenue generated for the township by the sewer system, and Wilson said that figure is actually closer to $1 million annually.
“Loss of this revenue will be included in the overall financial analysis that the financial advisor will do,” he said.
“You can rest assured: we’re not going to move forward with a sale that does not make sense financially for our community.”
Another resident asked about references to deferred maintenance on the plant during the September discussion; Wilson said that reference was made by the consultant in listing reasons why other towns do studies, not an indication of any problem with Towamencin’s plant.
“Our plant and collection system are well-maintained, and that’s thanks to the work of the authority, township staff, consultants and contractors,” Wilson said.
Another question asked what sewer rate increases may be necessary if the system is sold or is kept, and Wilson said that’s part of what the study should identify.
“This is part of the analysis that will be performed before we make any decision. That analysis has not been performed yet — we are very early in the process,” he said.
Another question asked what the board could do with the proceeds from any sale, and Wilson said “we have not had that discussion yet,” but could do so after the study is in. Options based on what other municipalities have done could include paying
down debt, allocating some of the proceeds to capital funds for other projects elsewhere, and/or offsetting future rate increases.
“We have not had that discussion among ourselves yet, as to what our list would be,” he said.
Those questions were all submitted to staff before the board meeting in accordance with their meeting policy during the COVID-19 pandemic, and answered during the public comment section at the start of the meeting. Roughly three hours later, another resident who attended the meeting in person asked if he could ask another question about the possible sale, and was told he could not.
“You’re not supposed to be in the building right now. I’m supposed to be in control of who has access — because of COVID restrictions, it was limited to presenters,” said Township Manager Rob Ford, before telling the resident he could contact Ford afterward to discuss further.
Towamencin’s supervisors next meet at 7:30 p.m. on Oct. 28; for more information visit www.Towamencin.org.