Mahanoy City Sewer Authority Announces Rate Increase for Upgrades

Knowledge

In a recent decision at their September 25, 2023, monthly meeting, the Mahanoy City Sewer Authority (MCSA) Board of Directors has approved a sewer rate increase of approximately twenty percent (20%).
This adjustment affects the base rate for one equivalent dwelling unit (EDU), which will rise from $119.00 to $143.00 per quarter or $8.00 per month. The new rates will take effect from October 1, 2023, and customers will notice the change in their January 2024 billing cycle.

For non-residential accounts, the rates will follow the EDU Equivalency Chart in the Authority's fee schedule, calculated as a ratio of the base EDU chart.

According to a press release, several factors have driven the need for this rate increase:

  • Capital Reinvestment: The Wastewater Treatment Plant (WWTP) requires over $10 million in capital reinvestment, and the current funding does not cover associated debt service costs. The Authority is actively seeking grants to alleviate customer expenses.
  • Operational Costs: The costs of chemicals, equipment, and materials for plant operation have exceeded the budgeted estimates.
  • Equipment Obsolescence: Aging equipment is no longer supported by suppliers, and replacement parts are challenging or impossible to find.
  • Environmental Compliance: Increased costs are necessary to meet Nitrogen and Phosphorus limits as part of the Chesapeake Bay Strategy.
  • Biosolids Compliance: The Authority faces stringent requirements for biosolids compliance.
  • CSO Long Term Control Plan: The Pennsylvania Department of Environmental Protection (PADEP) has mandated the completion of a Combined Sewer Overflow (CSO) Long Term Control Plan (LTCP) for the entire collection system. The Authority is challenging the potential $20 million dollar collection system rebuild required by this plan.
  • Bond Insurer Requirement: The Authority must maintain user rates at ten percent (10%) over the debt service payments per the Bond Insurer's requirements.
Dorothy Lewis, Chairperson, expressed, "The last time the Board raised rates was in 2016. We haven't been able to keep pace with increasing costs and a stagnant customer base. We don't like doing it, but we have a duty to provide this critical service to our customers."

Despite the increase, the new rates remain below the average Schuylkill County sewer service rate of over $50.00 per month, or $150 per quarter. The Authority had previously refinanced their debt in 2019 to maintain stable rates, but the rate adjustment is now necessary to generate new revenue.

The Authority Board and staff are actively exploring avenues to increase revenue and have engaged in discussions with local developers over the past few years. Limited development in the Borough has resulted in only one new commercial account in the past year, the Silver Springs Rehabilitation Facility. 


However, with optimism surrounding development along Morea Road, the Authority hopes to attract new customers. The Borough has reported over 100 more building permit requests than the previous year, raising expectations that this influx will provide the necessary funds to meet regulatory requirements.

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