In Governor Ed Rendell’s budget for fiscal year 2004, Act 339 funding for sewage authorities was eliminated. That elimination will cost the Tyrone Borough $148,000.
Since the enactment of Act 339 in 1953, approximately $875 million in subsidy payments were made to more than 1,000 communities, authorities, counties and school districts to help offset the cost of operating and maintaining wastewater treatment systems.
According to the Department of Environmental Protection acting deputy secretary John Hines, “We are not aware of any other state that has provided this particular type of financial assistance.”
In 2002, through DEP and the Act 339 funding, $425 million was provided in low-interest loans and grants for drinking water and wastewater infrastructure projects in Pennsylvania.
The loss of Act 339 funding will have a direct impact on the Tyrone Borough sewage rates.
“This is devastating to us,” said Tyrone Mayor Pat Stoner. “Last year we struggled with the loss of Westvaco revenue. Borough employees gave up raises and most of the council gave up their 2002 salaries to help make up for the shortfall and avoid a tax or sewer hike. The loss of the $148,000 from Act 339 funding is very tough to take.”
Tyrone borough has the lowest sewage rates in the region. The last hike in sewage rates was in 1983 and there has been a reduction since then.
“This is more than 10 percent of our annual budget,” said Tim Nulton, Tyrone sewer superintendent. “We haven’t received the $148,000 in state funding that we had budgeted. We normally receive that in September or October and with the repeal of Act 339, we won’t be getting any of that money.”
Following the closing of Westvaco in 2001, the Tyrone Sewer Authority tightened up the budget for 2003.
“We cut in the budget as close as we could and still operate,” said Nulton. “Losing $148,000 in funding will give council decisions to make. We need funding to keep the plant operating and the budget for next year probably will be higher because we have been using spare parts that we had in stock and we are using them up.”
“We will look at every option out there to make up for this loss in funding,” said Stoner. “In the final analysis, a sewage rate hike is a possibility.”
Nulton believes that more than the Tyrone Borough customers will be affected.
“When we calculate the bill for Northern Blair’s usage, they will help make up for the funding loss,” said Nulton. We calculate their costs right off the top. It is for the authorities to decide, but there almost has to be a rate increase to keep operating.”
The Northern Blair Regional Sewer Authority made it clear at its meeting yesterday that there would not be a rate hike.
“We planned for this in advance,” said NBRSA Chairman Charles Diehl. “We don’t foresee any rate hikes for the Northern Blair Regional Sewer Authority.”
