Leetsdale Municipal Authority refinances bonds to keep sewer rates low

Homeowners within the service area of the Leetsdale wastewater plant will not see an increase in sewer rates after the Leetsdale Municipal Authority — which serves Leetsdale, Edgeworth, Leet and Bell Acres — saved $130,000 by refinancing existing debt.

“Our board is very proud to have the lowest sewage rate in Pennsylvania,” said Dan Slagle, the authority’s engineer.

Jon Kumza, chairman of the authority, said the board worked to refinance a $4,225,000 debt in bonds with a low-interest bond. The Authority said it refinanced current loans at 3.9% interest down to 1.6%.

“The Leetsdale board wanted to figure out how to save money within the plant,” Kumza said.

The reduction resulted in annual savings of $38,000 in the first year while also generating $300,000 in new money to fund a capital project. The Authority will pay off bonds by 2030 with the same term prior to the refinancing.

Leetsdale has not seen an increase in sewer rates since 2009, Kuzma said.

Homeowners pay $30 a month.

To avoid rates increasing, the Authority mapped out a strategic financial management plan that focuses on four areas: electricity, labor, reducing debt and increasing the customer base.

“Each one was a success. We wanted to focus on the low-hanging fruits that cost bid dollar amounts,” Slagle said.

Kuzma said the Authority’s next focus is to discuss with Sewickley Borough about eliminating Sewickley’s wastewater plant to add Sewickley as a customer, which will continue to lower costs. This would not be the first time the two have discussed a possible merger; Sewickley approached Leetsdale about merging in 2018.

“This would be an effective consolidation that would lower everyone’s rates,” Kuzma said.