Sewer authority anticipates money losses next year
REDSTONE TWP. – The Redstone Township Sewer Authority is anticipating several revenue losses in 2004, with the closing of Dunlap Creek Village and the apparent end of a state grant program for new authorities. Authority president Dwayne Thomas said the state has not yet restored Act 339 funds to the budget and stands to lose $54,900 anticipated from that grant program in 2004.
“We won’t get it unless it’s put back into the budget. We have not received that money this year,” Thomas said.
The Fayette County Housing Authority pays the authority a maximum of $36,000 a year for the 100 units at Dunlap Creek Village. Thomas said the authority may still receive the revenue for 30 equivalent dwelling units (EDU’s) from the Housing Authority property, but it stands to lose $27,900 from the apartments being torn down.
Thomas said that despite the revenue losses, the authority should still be in good shape financially next year.
“We do project a surplus, but basically the money in the surplus is earmarked for the balloon payment at Parkvale when our loan ends,” Thomas said.
Thomas said the loan matures in 2006 and the balloon payment will be between $50,000 and $70,000.
Thomas said the authority’s tough stance on delinquent customers appears to be paying off.
“We had a six percent delinquency rate for October, which is pretty good. I think it’s the result of us being very diligent about our delinquent customers,” Thomas said.
The authority members voted to stop taking payments as water shut-offs are being conducted for non-payment of bills.
In other matters, engineer Don Reho said the authority might be able to get grants through PENNVEST for the Route 40/Route 166 corridor sewer project that is being planned.
“It’s also possible there could be other grant money, since this highway is going through. Some other agency might be interested in providing some grants,” Reho said.
Thomas said he would contact Congressman Jack Murtha’s (D-Johnstown) office about the grant possibilities in light of the project’s proximity to the route of the Mon-Fayette Expressway.