Johnstown City Council moves toward sewer rate hike

BY MIKE FAHER
The Tribune-Democrat

April 23, 2009 06:24 am

— Johnstown City Council on Wednesday gave preliminary approval for a controversial sewage-rate increase.
The rate hike, which still must go through another vote before formal adoption, would give the city hundreds of thousands of dollars in additional yearly revenue to help pay for a massive, state-mandated sewer-repair job.
And the vote came as City Manager Curt Davis announced that state environmental regulators have summoned him to a meeting where he must explain what Johnstown is doing to fix its sewage system.
“I expect them to take a serious look at our corrective-action plan and how we expect to fund it,” Davis said.
All municipalities in the Johnstown Regional Sewage system must address illegal overflows of untreated waste caused by surface water infiltrating sewage lines.
But the city faces a big job – with a price tag that likely will top $10 million – and apparently has fallen behind schedule.
Months ago, Davis had requested a sewage-rate increase from an average of $5.90 per month to $10 monthly. Advocates said that was a necessary move, given the size of the job Johnstown must undertake.
They also argued that the city’s rates are among the lowest in the local system.
But council repeatedly had delayed that vote and, earlier this month, rejected the measure on a 5-3 vote. Some believed residents should not have to pay more, while others were concerned that City Hall administrators may not allocate the extra revenue appropriately.
That has happened regularly in the past, with sewage-rate collections spent on other budgetary items.
In an effort to address that concern, Davis amended the rate-hike ordinance. It now creates a separate “restricted” account for sewage repairs.
“No monies from this account may be used for any other city appropriations, including loans, temporary borrowing or transfers,” the ordinance reads.
Council approved the statute unanimously. A final vote will occur next month.
It is unclear what action, if any, the state Department of Environmental Protection may take after meeting with Davis in Pittsburgh on May 7. The agency has the power to impose a consent order and fines if officials feel the city is not adequately addressing the sewage problem.
Along with Davis, the city’s public works director, solicitor and engineer will attend the meeting.
City officials also have applied for a nearly $6.7 million state grant for the sewage-repair project. Davis on Wednesday said he has heard no new information regarding that request.