No decision on a sewer rate reduction was reached by the Washington Township Board of Supervisors at a workshop meeting last Thursday night.  The Board of Supervisors held an informal discussion with the citizens of Washington Township in an effort to find a solution for the township's high sewer fees of $345.29 per quarter.

            Township Chairman, Dave Moyer, explained to the large crowd, composed primarily of senior citizens, that it would take a few workshop meetings before any decision to lower sewer rates could be determined.

            Township Manager, Richard Sichler, provided a detailed break-down of sewer authority expenses for 2017.  Sichler noted the greatest expense for the sewer authority at 66.9% is the debt service of $814,152.50 per year.  In 2017, the sewer authority's total expenses were $1,216,830.11.  The total customer generated revenue was $1,299,832.12.  The difference between sewer revenue and expenses was $83,002.01 which is a small profit for the sewer authority.  The township must keep one full year's mortgage payment of approximately $1 million in reserve to satisfy the condition of its bonds.  In 2012, the refinanced debt of the sewer authority was $12 million.  Currently, the township owes roughly $11 million.  That debt will not be retired until 2032.

            Financially pressed property owners in the township offered solutions to the Supervisors that ranged from levying a tax on all property owners to pay for the sewer debt to selling the sewer authority to an outside agency.  Suggestions included refinancing the debt, applying for grants, and getting more users into the sewer system through new development.  The Supervisors patiently explained a tax to assist the sewer system is unfair because those residents who have private sewer systems, such as sand mounds, and do not use the township's sewer system must pay approximately $35,000 without anyone's assistance if their private sewer system fails. 

            Supervisor Tom Powanda explained if a house that is not hooked to public sewer is expanded the owner must upgrade his private sewer at great expense.  Additionally, Powanda explained a tax to alleviate a high sewer rate levied on all property owners in the township would include sewer rate payers, as well. 

            Chairman Moyer explained the township regularly looks for grants to assist with the sewer debt, but there are no grants for which the township qualifies.  Moyer said the sale of the entire sewer system to an outside agency such as Aqua America would result in much higher fees to sewer users.  Township Manager Sichler explained the township's interest rate on its current debt is 2% to 2 1/2% for the first 11 years of the loan.  The interest will increase to 3.25% toward the end of the loan when the principal will be lower.  Sichler noted refinancing the loan is not a viable option because it would cost at least $70,000 to refinance and the interest rate would be higher than what the township currently pays.

            Carol Latch spoke for many senior citizens at the meeting who are concerned about high sewer fees.  Latch said, "Most of us are on Social Security.  It is stressful for the elderly on a fixed income."  It was suggested a consumer advocate might be of some assistance. 

            On a hopeful note the Supervisors explained when the sewer plant was built in 1995 it was designed for expansion.  More new customers for the sewer system eventually will ease the burden of the sewer debt.  Any new development in the township will be assessed a "tapping" fee to connect to the sewer system. 

            Properties that are presently connected to the public sewer system will not be required to pay for any expansion.

            The Board of Supervisors approved Township Manager Sichler's request to have Paul Jansen from the Albright Center for Excellence in Local Government evaluate Washington Township's sewer system's finances.

            Supervisor Powanda expressed the opinion, "The entire Board of Supervisors would like to get the rates lowered."