Aug 20, 2002 By Patty Shultz 3 min read

DUNBAR TWP. – An ongoing municipal authority sewerage project received the financial backing of the township with supervisors initialing an ordinance to guarantee the multi-million dollar loan payment. The supervisors met in special session Monday to establish the ordinance that will allow the Department of Agriculture Rural Utility Service (RUS) to turn over a federal $5.05 million loan to the Dunbar Township Municipal Authority (DTMA) for the completion of the sewerage project.

The project, which encompasses the areas of Leisenring, Rogerstown, Trotter, Brookville, Adelaide, Falls Avenue and Ridge Boulevard, was started in February through an interim loan arranged by the RUS.

“The (interim) loan is nearing the end and it’s time to finalize the paperwork for the ($5.05 million) loan,” said Donald McCue, township solicitor.

While some of the standing room only crowd questioned the township’s financial responsibility in the process, McCue explained that all federal RUS loans are required to have the municipality guarantee that should the authority default in its loan payment, the township would assume the payment.

“But that is not going to happen; the municipal authority is going to be able to make those payments with the income from the tap-in fees and regular monthly sewerage payments,” he said. “There has never been a default on this type of loan where the RUS is involved; they are carefully funded and carefully structured.”

Residents are required to pay an $850 tap-in fee. A monthly rate of $38 for the service has been established by the DTMA for the anticipated 900 customers.

The project is additionally being funded with a $3 million grant received through the federal agency.

McCue also diffused a rumor circulating the township that other utility rates were going to be increased to assist in funding the sewerage project.

“One has nothing to do with the other,” said McCue when asked about an impending cable television franchise fee being considered by the township.

During an earlier township meeting, supervisors discussed charging the township’s cable provider, Armstrong Cable, a 5 percent fee for operating in the municipality. The assessed fee would be added on to the customer’s monthly cable bill, if enacted.

“We haven’t made any final decisions about (the franchise fee),” said Supervisor Gene Frazier following the Monday meeting.

He explained that the fee, which has been enacted in other county municipalities, would add approximately $1.75 to a $35 rate being paid for cable service.

However, added Frazier, any action taken by the supervisors concerning the franchise fee is not related to the DTMA sewerage project.

Three contractors, Shallenberger Construction of Connellsville, DT Construction of Dunbar and Galloway Bay of Mount Braddock, were selected to complete the sewerage line installation work and construction of the treatment plant.

McCue speculated that the project would be completed in advance of the Jan. 31 deadline stipulated in the contracts with the firms.

“It’s moving along very well,” he said.

In a related matter, McCue advised residents with complaints relating to the construction to attend the authority’s Aug. 26 meeting.