May 7, 2008 By Christine Haines 3 min read

LUZERNE TWP. – Sewage rates will be going up for residents of Maxwell and LaBelle, the Phase 1 area of the Luzerne Township Sewage Authority. The rate in the Phase 1 sewerage district will go from $38 a month to $43 effective with the June 1 billing. The increase brings the customers in LaBelle and Maxwell to the same payment level as customers in other areas of the township.

Authority Chairman Pat Ballon said a rate analysis showed that Phase 1 has been operating in the red, with expenses running $8.95 a month higher per household than is billed. Ballon said the largest customer in the sewerage district is the State Correctional Institute at Fayette, which pays a contracted amount.

“The prison is increasing the amount it pays, but it won’t cover all of the shortfall,” Ballon said. “If we increase the household rate from $38 to $43, the same as the others, it would put our heads above water.”

Only three members of the authority were present at Monday’s meeting. All three, Ballon, Joe Terravecchia and David Smith, voted in favor of the increase.

The authority is in the process of revamping its finances. Last month it established a separate fund to cover its debt service for Phase 1 as required by Rural Utility Services, the federal agency that provided the construction loans for the sewerage system. Ballon said the account is still under-funded by $14,000. Payments will start coming out of the fund in August.

In other matters, several residents asked about payment plans or reductions for their tap-in fees. Solicitor Jack Purcell said that at no time can the authority lower the fee to less than the initial base rate offered to customers, but it can vote to reduce penalties or interest that may have been added to the fee.

The authority members said that each case will need to be decided on an individual basis. The authority discussed the possibility of setting up income guidelines and requiring residents to provide proof of need before any discounting is done. Purcell noted that the rate resolution states that no tap permits will be issued until the fee is paid in full. Property owners who are making payments on a tap-in fee also need to pay the monthly sewage bill even though they cannot tap into the system until the fee is paid in full.

Terravecchia said he has been questioned about the process for delinquent customers. He noted that customers have approximately 90 days to pay their accounts in full before their water is turned off, since the first delinquent notice doesn’t go out until an account is 60 days past due. Ten days after the certified past due notice, the customer’s property is posted for another 10 days before the water company is notified to shut off the water.

Terravecchia said keeping an account up to date is much less expensive than facing the fees associated with the water shut-off. Three different water companies serve the township, each with a different fee structure for water shut-offs and restarts.

Customers of the Southwestern Pennsylvania Water Authority are charged $25 for the shut-off and the same amount to turn the water back on, plus an equal amount in administrative fees by the authority, for a total of $100 in fees on top of the sewage bill. Pennsylvania American Water customers are charged $30 per service by the water company, for a total of $120 between the water company and the sewage authority. Tri-County Water Authority customers face the highest fees in the event of a shut-off, with $50 for each action, taking the total to $200 with the authority’s administrative fee.